Bean counters have been known to be a little conservative from time to time
Agree on margins, probably locked in forward cover mid 2016 at rates lower than what's prevailing now which augers very well for gross profit margin expansion in 2H FY17.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Must say I am impressed with their accounting systems that they believe they can forecast profit that accurately so soon after the end of the first half. This is a company being run and managed extremely well in my opinion. Sector leading stock turn speaks for itself too.
Last edited by Beagle; 03-02-2017 at 09:59 AM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
I'll be looking for H1 npat of at least $9m and a gross margin in the region of 58.5% and a sales uplift of 8-9%. The second half is even harder to guess at with weather factors etc but share price should see a move back above $3.50 if they can deliver c $9m for the first half. Another div in April prob 14 cents or so.
I'm happy to pat myself on the back with my forecast. Got NPAT pretty much bang on - was slightly optimistic on GM at 58.5% v 58.2% actual but sales at 9.4% slightly higher than my 8-9% forecast. Am pretty sure they'll pay 15cps dividend as npat is going to be 15.1-15.4cps and they pay out c. 100% historically...
I'm happy to pat myself on the back with my forecast. Got NPAT pretty much bang on - was slightly optimistic on GM at 58.5% v 58.2% actual but sales at 9.4% slightly higher than my 8-9% forecast. Am pretty sure they'll pay 15cps dividend as npat is going to be 15.1-15.4cps and they pay out c. 100% historically...
Decent result, only thing with this share is thin volumes makes it frustrating at times to play with:-)
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