Tegel IPO

[Ace]

Why chicken is about to get pricey

Chicken prices are expected to rise.By Christopher Adams

Enjoy cheap chicken prices while they last.
That's the message consumers can take from a sharebroker's report that says a glut in New Zealand's favourite meat will shortly come to an end.
Average prices for fresh chicken pieces were 9 per cent lower in August than in March, according to the First NZ Capital research.
And whole frozen chickens were.........read on....

http://m.nzherald.co.nz/business/new...ectid=11727574

I just read an article in stuff which had a different headline, came across it on facebook.

Chicken the cheapest it has been since 2007

Chicken prices have fallen to their lowest level in nearly a decade.
A kilogram of chicken breasts fell to $13.52 in September, having peaked at $16.60 in late 2014.
Statistics New Zealand said last month's fall in chicken prices meant they had dropped for each of the last 16 months, and were now at their lowest level since October, 2007.
Poultry Industry Association executive director Michael Brooks said the general drop in chicken prices was the result of expansion in the local industry, as the chicken you buy in New Zealand was locally produced.
"With supply decisions being made one to two years ahead, temporary periods of under- or over-supply can occur and affect prices accordingly," Brooks said.

Don't really keep tabs on TGL here's the link for the article, it's from stuff lol http://www.stuff.co.nz/business/8528...een-since-2007

[BlackCross]

"Covered in winners post #488"

Sorry I bothered.

[trader_jackson]

So when Tegel went through the whole IPO thingy, did the PE firm that listed it disclose that there had been years of oversupply in the market (leading to weak prices that will recover... in theory [hopefully?]) or was this just brushed under the mat while we focus on the ever increasing export opportunities Tegel has to offer?

(I have probably missed something so please excuse my ignorance if this is the case)

[winner69]

So when Tegel went through the whole IPO thingy, did the PE firm that listed it disclose that there had been years of oversupply in the market (leading to weak prices that will recover... in theory [hopefully?]) or was this just brushed under the mat while we focus on the ever increasing export opportunities Tegel has to offer?

(I have probably missed something so please excuse my ignorance if this is the case)

Mentioned a few times

Said Fy16 growth would be 'partly offset by the mix effect of increased volumes on major contracts and a supply / demand imbalance on certain products in the domestic channel during FY2016F which is forecast to rebalance in FY2017F"

So all above board and honky dory - punters were told

You should read their book - quite educational even if you not interested in buying Tegel shares today

[Sideshow Bob]

http://www.stuff.co.nz/business/8529...our-complaints

[percy]

Well I hope the agm tucka is a bit more exciting than the speeches.
"On track to achieve their PFI forecast for the full FY17,and will update the market on the first half of those results in mid December."
Well looks as though the divie is still on track to be paid in January.

[JayRiggs]

I went to the AGM today.
The tucka certainly did not disappoint! A wide variety of chickens on offering.
There were: various nuggets, golden crumbed tenders, panko & quinoa crumbed tenders, chicken fries, lime and chilli chicken kebabs with an assortment of sauces.
It was all very greasy and I think they ran out of napkins, because I couldn't find any to wipe my filthy hands.

Will post more about the meeting later today.

[JeremyALD]

Would love to hear your thoughts on ghe meeting Percy!

[Beagle]

http://www.sharechat.co.nz/article/d...are-price.html

Hard to soar like an eagle when its so heavily weighed down with escrow shares for Africa...

[JayRiggs]

My observations from the Tegel AGM.

They were about to play a video about Tegel's story in the middle of CEO Phil Hand's presentation, but the tech guys couldn't get the video going - there was no sound. After about a 1 minute silence, someone in the back got impatient, muttered he was deaf and told Phil Hand to move on.
Phil Hand was shaking his head at the tech guys in disappointment and moved on with the meeting.

Questions asked by shareholders.
A question about Ighams IPO and how this is affecting the Tegel share price, it's been heading down. And what are you going to do about Ighams and other competition?
James Odgen: Tegel has been dealing with competition for many years and will continue to do so. We aren't in a position to comment on Ighams IPO, Ighams are just doing their own thing. The NZX has gone down by about 7.9% since early September, so it isn't just Tegel share price going down.

The guy replies, but Tegel shares have fallen by about 20%, more than the NZX!
James Odgen: No, Tegel hasn't gone down by that much.
James then tells the shareholder to see one of the Tegel guys for a broker report to assure him of Tegel's worth.
Then they moved on.

A lady asked about chicken feet.
Before her question, she said she paid $1.68 for her shares and was happy with paying a higher price (presumably because she's happy with the company).

What happened to the Tegel chicken feet?
Phil Hand: We are still selling chicken feet. It is a valuable revenue stream.

Will you be exporting chicken feet to Hong Kong?
Phil Hand: Yes that is on the plan.

The lady then goes on to say, don't add condiments to the chicken feet, because chinese people prefer plainer chicken feet.
And if you want the right chicken feet to sell to chinese, check the chicken feet in Hong Kong yumchar, make sure they aren't too big or too small.
James Odgen: I'll get you to meet with a products exec after morning tea to discuss this.
Drew a few laughs in the room.

A shareholder expressed concern about the Affinity excrow of shares, how Affinity will be allowed to sell when it goes over WVAP $1.86 for 10 consecutive trading days after the half year result. And if this sell off will affect the Tegel share price.
James Odgen clarifies the shares escrow period. Afinity own 45.8% and are happy with the company. They won't neccessarily sell their shares when it goes over $1.86.

Another shareholder questioned why Kang Tok Yew and Brett Sutton, why do they not personally hold shares in Tegel?
Kang Tok Yew explains because himself and Brett are fund managers in Affinity and there is a rule in place that doesn't allow them to personally hold shares in Tegel to prevent conflict of interest with shareholders. Otherwise, they would own Tegel shares.

After question/answer time, the tech guys got the video going. Phil Hand comments that the AV guys are doing a great job. A hint of sarcasm? Good that the tech guys sorted it in the end anyway, saved a bit of embarassment of their earlier blunder.
It was a nice video. Gave a good overview of the Tegel story with pretty pictures of their products. 95% brand awareness in NZ and 35% of shoppers will go for Tegel products before their competitor's. All their birds are not caged, free to roam about in the shed or free range outside in the paddock. No birds are injected with hormones too.