Comvita - CVT

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Taking decisions by following short term analysis or short term speculation on assets will miss the biggest gain or will make losses. It is known fact that no company or any other asset can make similar performance almost every year and every quarter. But there are some things to monitor and study.

Does the company have long term business?
Does the company is building cash while managing debt level prudently?
Will the company stand out from the rest while facing competition successfully if they have competition?
Does the company have products with sufficient market potential to sustain sales for at least several years?
Does the management have a strategy and determination to develop products and services?
What is the company doing to maintain profit margin?
Can we satisfy with their research and development, cost analysis and accounting controls?
Does the company have above average marketing organization?
Does the company reduce or increase marketing and research cost?

According to above link Companies included in the S&P/NZX Primary Sector Index are:

• The a2 Milk Company Limited
• Comvita Limited
• Delegat Group Limited
• Foley Family Wines Limited
• Fonterra Shareholder’ Fund
• Livestock Improvement Corporation Limited (NS)
• New Zealand King Salmon Investments Limited
• PGG Wrightson Limited
• Sanford Limited (NS)
• Scales Corporation Limited
• SeaDragon Limited
• Seeka Limited
• Synlait Milk Limited (NS)
• T&G Global Limited
• Tegel Group Holdings Limited

Out of above which one has more value and can consider as safe investment? Which company has the potential to become an outstanding company? Thanks in advance.

I'll answer the questions in respect to Comvita:

Does the company have a long term business?
Yes.

Is the company building cash while managing debt level prudently?
No.

Will the company stand out from the rest while facing competition successfully if they have competition?
They don't have competition (lol, OK maybe just a little, but answer still yes)

Does the company have products with sufficient market potential to sustain sales for at least several years?
Yes.

Does the management have a strategy and determination to develop products and services?
Don't know.

What is the company doing to maintain profit margin?
Praying to the weather Gods.

Can we be satisfy with their research and development, cost analysis and accounting controls?
Some what satisfied but could be better.

Does the company have above average marketing organization?
Leading brand in it's category.

Does the company reduce or increase marketing and research cost?
I guess it's increasing.

Re the index. I would probably buy all of those companies. The index would make a good retirement/Kiwisaver investment. Investing in NZ food company's is as risk free as it gets. It's performing just as well as high cap USA tech stocks. A2 Milk does look overvalued though. I think Tegal is fairly priced now so would maybe buy it.

I'm more of a short term trader so can't really be of much help, I just get bored easily. If I had like $10m I would just buy the index and retire rather than trying to pick stocks like Comvita and make 30% short term with all the stress.