Scales - SCL

[JayRiggs]

All the hype and ramping going on around here has made me climb on board SCL with a small holding today.
What would the risks be for this company? I was wondering if they'd have similar risks to Seeka? i.e. fruit and vegetable diseases. Bad weather - storms.
I take it that a falling NZ dollar is a positive? Bigger bucks for exports.

[nextbigthing]

What would the risks be for this company?

Main risk is foreign buyers purchasing your shares for around half of what they're actually worth

[macduffy]

All the hype and ramping going on around here has made me climb on board SCL with a small holding today.
What would the risks be for this company? I was wondering if they'd have similar risks to Seeka? i.e. fruit and vegetable diseases. Bad weather - storms.
I take it that a falling NZ dollar is a positive? Bigger bucks for exports.

Yes, all of the above. Plus market risk if/when NZ apples fall out of favour; higher NZD at some point; other countries getting in on the apple act - although we have a good head start; all of the usual risks associated with international trading of food produce eg protectionist "concerns" such as the Tassie applegrowers show from time to time. Otherwise, go for it. I hold.

[Peitro]

Excuse my ignorance, where did the liquidity come from? Who sold?

[macduffy]

Excuse my ignorance, where did the liquidity come from? Who sold?

Whenever a share has an exceptional rise there's always traders and profit takers prepared to take those profits. Probably nothing more than that - and Direct Capital's sale to Chinese interests yersterday.

[Pricey]

Direct Capital together with its co-investors retained a holding of 18.05% ownership in SCL following its IPO and all of those shares were held in escrow (couldn't be sold) up until 31 December 2015.

[Beagle]

It has been famously said that the market is simply a platform whereby value is transferred from the impatient to the patient, a saying that seems quite pertinent in this particular case.

[Xerof]

It could well be correct to say Direct Capital have proven impatient, but they come from a position of buying a bargain off the SCF receivers and have made a fantastic return since then.

Some also hold the view of 'following the money', so for those who have "just joined the party" be cognisant that the organiser of the party has just finished drinking, and has (all but) left

[percy]

It could well be correct to say Direct Capital have proven impatient, but they come from a position of buying a bargain off the SCF receivers and have made a fantastic return since then.

Some also hold the view of 'following the money', so for those who have "just joined the party" be cognisant that the organiser of the party has just finished drinking, and has (all but) left

Thank you Xerof,a timely post.
Very salient points.

[Beagle]

Plenty of cheap Chinese liquor will be sloshing around soon enough