SCT - Scott Tech

[Snoopy]

An item in the farming section of today's Christchurch Press about the Alliance Group installing primal cut automation into their Smithfield and Pukeuri works.

No mention is made of the supplier of this equipment but I assume it will be Scott Technology.

http://www.stuff.co.nz/business/farm...ig-in-robotics


Boop boop de do
Marilyn

Good day for Scott Technology on the market today. The share closed up 7.4% at $1.88. But the underlying rise was even better as the offer on close was at $1.93 with no sellers below $2. Based on the unfulfilled closing offer price, the price rise today was 10.3% (the figure I would use). What was the driver of this sudden price action?

From:

http://nzx-prod-s7fsd7f98s.s3-websit...505/332962.pdf

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15 October 2020 Company Announcement: SCOTT AWARDED MULTI-MILLION DOLLAR CONTRACT FOR WORLD LEADING MEAT PROCESSING TECHNOLOGY

"Scott Technology Awarded Contract to Design and Build New Zealand’s Most Advanced Lamb Processing System for Alliance Group Automation and robotics solutions provider, Scott Technology Limited (NZX: SCT), is pleased to announce the award of a large contract by Alliance Group to design and build an X-ray lamb boning system for Alliance’s Lorneville plant, located near Invercargill, as the co-operative seeks to improve the operational efficiency of its largest site."

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This is good news because the automated lamb boning room is an automation project that Scott has nailed. This kind of 'repeat business' becomes relatively low risk and high profit margin for Scotts, albeit this is a job for FY2021, not the financial year just ended. What is unusual is the timing of this announcement. Last year the full year result was released on October 24th, only a matter of days away. Traditionally Scott's announce significant new contracts signed on results day. So why has this announcement been brought forwards by nine days? Scott's have been subdued on what is happening at their European arm, which has historically been a very significant part of Scott's turnover and is doubtless very quiet. I wonder if CEO Kippenberger has brought forwards the positive announcement to raise the share price a week before the result so that a cash issue, to pay down debt, can be got away at a good price 'based on the market value of Scott's shares 7 days before the announcement'? I know that sounds cynical. But I have been around the markets for a while! I guess all will be revealed in a few days.

SNOOPY

discl: hold SCT