Quote Originally Posted by SectorSurfa View Post
interesting to read the old threads and thoughts

*first sign of avoid would have been the appearance of Belgarion holding/ spruiking SCT

good post Snoopy, and good luck, are you seeing the NZD getting weaker the major SP driver going forward?
A weaker NZD/USD relationship would help SectorSurfa, but who knows when or if that will happen? RBNZ Governor Bollards comments re NZ interest rates last week seem to have pushed the NZD/USD relationship the other way. That is possibly why some selling pressure has emerged in SCT over the last few days.

Of more concern to me is the NZD/EURO relationship as the two competitors globally that SCT have operate out of Italy and Spain respectively. As long as Scott's competitive advantage is maintained relative to those two European based competitors, I think that Scotts will be able to compete whatever happens to the NZD/USD exchange rate.

New CEO Chris Hopkins is onto the exchange rate problem anyway and has embarked on a strategy of sourcing more of the raw material input costs directly from overseas. Also SCT are looking for a domestically orientated business acquisition to smooth some of the peaks and troughs of workload that come with being so overseas focussed.

When it comes down to it, I guess I am backing on the existing employee skills base to work their way around whatever problems the market throws at them. I am betting on the robotics division finally making a meaningful contribution to profit. And with the retirement of Chairman Marsh, after 38 years at the helm, I am betting on the new governance broom revving the company up a bit.

SNOOPY

discl: hold SCT