Quote Originally Posted by iceman View Post
Agree benjitara about the need for careful management of CAPEX. It is a difficult balance for a company providing infrastructure services and growing own produce in a fast growing but seasonal industry. You are damned if you do and damned if you don’t. However, I hope they come to us SH for some of the cash needed for future growth.
The CEO said in his HY comments that by mid June all coldstores were full. 1.3M trays were shipped one week after harvest but CAPEX required to build storage for that “excess” is $ 15M, which is not an efficient use of our money. Sadly Seeka’s application for collaborative marketing with Hainan Province in China last year, which included VERY cheap use of coolstores in China, was declined. One has to wonder why. Sometimes one has the feeling that Zespri’s monopoly is not conducive to innovative thinking in marketing and that they are more interested in protecting their monopoly.

One interesting little bit in the HY numbers is that free cashflow from operation was +3.3M , very unusual for the first half which normally has negative cashflow. I think this sets us up for a good 2nd half. Interesting to note also that this is the last year of the growers loyalty scheme which this year cost SEK nearly $3M in new shares. This is not a cash transaction but will flow straight to the bottom line next year as long as the growers stay with SEK.

Overall the business seems in good health. Kiwfruit with record volumes, Australia with a maiden (but below expectations) profit, Kiwiberry forecast to double in 2017, Avocados going great. The only lacklustre performance seems to be in Bananas and in Seeka Retail generally. But I am very pleased with this result. Also love how they announce the DRP strike price at the same time they announce the divie. Wish more companies did that.

I believe we will see quite rapid further growth of Seeka for the next 3-5 years and expect capitalisation to triple in the medium term. I am in for the ride with SEK currentlybeing my biggest holding.
Thanks Iceman.
You remain "well positioned."!!!!..lol.