SML - Synlait

[Minimoke]

Actually - the last market update was only one month back .... I guess you can't really complain that they don't keep their shareholders up to date, can you?

Here it is if you missed it:

https://announcements.nzx.com/detail/404539

Admittedly - it all sounds a bit soft ... but maybe soft is good (as in "fluffy"?) ... and they are clearly softening up their share holders. Pink - soft - fluffy - Synlait. All good.

I'm not complaining about them keeping shareholders up to date. The point I was making was the irrelevant window dressing they do like to keep the market informed about. All this ESG stuff is nice window dressing but so often doesnt address the issue of returning value to shareholders.

Fonterra doesn't do it - while they might create reports that look good on their website they don't report them to the Market.

I'd be really interested in an update from SML: on what they are going to achieve an actual return to shareholders - be it a substantial improvement in their share price or an actual dividend.

And in the meantime they arent telling the market about what is happening at Pokeno or with this new International Customer/s other than "Synlait's new multinational customers will start to lift margins and improve asset utilisation at Pokeno and Dunsandel (Liquids facility)."

Instead they seem to be pouring endless money into their SAP implementation.

[BlackPeter]

I'm not complaining about them keeping shareholders up to date. The point I was making was the irrelevant window dressing they do like to keep the market informed about. All this ESG stuff is nice window dressing but so often doesnt address the issue of returning value to shareholders.

Fonterra doesn't do it - while they might create reports that look good on their website they don't report them to the Market.

I'd be really interested in an update from SML: on what they are going to achieve an actual return to shareholders - be it a substantial improvement in their share price or an actual dividend.

And in the meantime they arent telling the market about what is happening at Pokeno or with this new International Customer/s other than "Synlait's new multinational customers will start to lift margins and improve asset utilisation at Pokeno and Dunsandel (Liquids facility)."

Instead they seem to be pouring endless money into their SAP implementation.

Lets face it - many companies are attracting investor money for various investments, and sometimes they are successful and sometimes not. Investors have full control over whether they want to give the respective companies their money or not, i.e. given that they did get money from their investors and the share price is essentially unchanged over the last 10 years or so (with the exception of the A2 hype mountain on the way they consistently hovered between something like $3 and $3.50).

Based on that do I assume a certain number of share holders just love the consistency of this company, otherwise they would give their money somebody else. Your dollar stays exactly that and on top of that one gets from time to time a nice story, a healthy snack at the AGM and a new soft colour to enjoy. One could say investing into Synlait is as good (or even better) as having money under the mattress! No need to complain. Anybody who does not like it can give their money to somebody else ...

[Minimoke]

Lets face it - many companies are attracting investor money for various investments, and sometimes they are successful and sometimes not. Investors have full control over whether they want to give the respective companies their money or not, i.e. given that they did get money from their investors and the share price is essentially unchanged over the last 10 years or so (with the exception of the A2 hype mountain on the way they consistently hovered between something like $3 and $3.50).

Based on that do I assume a certain number of share holders just love the consistency of this company, otherwise they would give their money somebody else. Your dollar stays exactly that and on top of that one gets from time to time a nice story, a healthy snack at the AGM and a new soft colour to enjoy. One could say investing into Synlait is as good (or even better) as having money under the mattress! No need to complain. Anybody who does not like it can give their money to somebody else ...

I agree. For "investors" who are torn between putting their money under the mattress and wanting to enter the sharemarket then Synlait has been as good a choice as any over the past couple of years. Though I would have recommended a bank account because at least you would have got a return from an increasing interest rate.

Though I am not sure those that subscribed to the $200m capital raise back in 2020 at $5.10 feel so good. Remember that - it was to "Complete the investment phase of its strategy including the customisation of Synlait Pokeno and Auckland for processing and packaging equipment to service its new multinational customer". Though they probably feel  not as bad as those that bought at peak in 2018 at $13.50.

If I was looking for a company with a consistent SP I'd be wanting a consistent dividend to go with it. And preferably one that didn't keep green and rainbow washing the business

[Sideshow Bob]

Probably would have done just as well under the mattress....

Although life is alot about timing!!

[Hectorplains]

Great everyone else is laying off staff while SML fearlessly forges ahead with yet more recruitment.  Here's another hungry mouth sucking on the SML udder. That has to be their stupidest job title yet - does someone else have an executive role as President Newspeak and Director of Meaningless Monikers? 

[winner (n)]

OMG what a disaster

The 2 year recovery now a 3 year recovery

Might make $15m this year ...jeez last year they made $38m ....big big drop

Never mind, the new customer will save them

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SML/408512/390881.pdf

[BlackPeter]

OMG what a disaster

The 2 year recovery now a 3 year recovery

Might make $15m this year ...jeez last year they made $38m ....big big drop

Never mind, the new customer will save them

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SML/408512/390881.pdf

Look at it from the bright side - they still make some money (i.e. there is potential to deteriorate) ... and shareholders clearly must love the colour. Which other holding could provide that much pink?

[Minimoke]

Still trying to recover from Leons mismanagement. He left quite the legacy!

Hows that BCorp status working out for profitability Leon?

[Hectorplains]

OMG what a disaster

The 2 year recovery now a 3 year recovery

Might make $15m this year ...jeez last year they made $38m ....big big drop

Never mind, the new customer will save them

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SML/408512/390881.pdf

Guidance range of $15m to $25 M.  That's quite the range...more fully called a Clayton's guidance.

[Minimoke]

Currently trading at NZ $2.83. Back to its historical lows. With more room to go.

So its time for a chart.

You cannot view this attachment.

[winner (n)]

Back in the good days ......2018 ASM

IMPRESSIVE RESULT APPLAUDED BY SHAREHOLDERS

[BlackPeter]

Back in the good days ......2018 ASM

IMPRESSIVE RESULT APPLAUDED BY SHAREHOLDERS

Yes, I do remember this AGM. Amazing vibes ...

Coincidentally - this would have been the ideal time to sell out (talking about exuberance and all these things ;.

[KW]

Look at it from the bright side - they still make some money (i.e. there is potential to deteriorate) ... and shareholders clearly must love the colour. Which other holding could provide that much pink?

https://www.afr.com/life-and-luxury/fashion-and-style/the-designer-who-pioneered-millennial-pink-is-headed-for-australia-20220729-p5b5re
"Years later the term "Millennial pink" would be coined to describe what became the tone of the second half of the previous decade."

They need to rebrand again, like Afterpay did.  Its all about Millenial Mint now
https://www.image.ie/editorial/move-over-millennial-pink-its-all-about-millennial-mint-146943

[winner (n)]

In BusinessDesk -

Octagon's chief investment officer, Paul Robertshawe, said the market had been anticipating that Synlait would take longer to complete its financial recovery, especially as China had been closed.

 "But this is a material miss to even those expectations," he told BusinessDesk.

Robertshawe added that the number of causes for the company's recovery deferral had also been broader than the market was anticipating. "The number of causes is a bit surprising. Some of those things you might have anticipated."

The highlighted comment a bit telling

[Minimoke]

Currently trading at NZ $2.83. Back to its historical lows. With more room to go.

So its time for a chart.

You cannot view this attachment.

Now in unchartered territory. Trading has hit $2.73. I don't think it has ever been this low before.