SML - Synlait

[Minimoke]

The difference imo is:

• SKT were already showing signs that the turnaround was working, SML is showing no signs that they can recover
• SKT Cum-CR definitely crashed the SP, but we knew the terms of the CR, whereas for SML we don't, yet
• We didn't have to be SKT shareholders, or partake in the CR, the market gifted us low SP, whereas the market SP for SML hasn't bottomed yet

Quite right. Market opened at $0.23 but already is at $0.225. Now worth less than $50m

Oops. Down to $0.22

Ops down to $0.215

[Basil]

The way the share price is tanking it looks like the capital raise will be 30 billion shares at 1 cent each raising $300m.

[Minimoke]

Cathy Gamlen, head of People is off after lasting less than a year.

In the meantime this is interesting "Huang said Bright and a2 Milk — which derives all its infant milk formula from Synlait — "exchange views on critical matters, from time to time, and in a friendly and co-operative way".

[Left Field]

Cathy Gamlen, head of People is off after lasting less than a year.

In the meantime this is interesting "Huang said Bright and a2 Milk — which derives all its infant milk formula from Synlait — "exchange views on critical matters, from time to time, and in a friendly and co-operative way".

.....in the meantime SML on the leader board at the time of writing today....SP at $ 0.2450
up $0.0200 a huge increase of 8.89%!!

Crikey!

[Teitei]

Bright has spoken and it's as clear as can be.

https://www.nzherald.co.nz/business/synlait-can-recover-chinas-bright-dairy/CD4OAZYKZVGVDISAFWATJIWKN4/
Paywalled

[Teitei]

.....in the meantime SML on the leader board at the time of writing today....SP at $ 0.2450
up $0.0200 a huge increase of 8.89%!!

Crikey!

Buyers piling up to buy the bonds and the sellers backing off. Only 1 small seller on the screen.

I wonder what that means.

[Teitei]

China is a command economy.

Understand that and you will understand why A2 is a eunuch.

Repeat again.

[Left Field]

Repeat again.

Who in their right mind would buy a share which is cum-CR? One would only consider investing during the CR period when details are available to assess the proposition.  Again, just like Sky TV.

Buying a share  during a CR period is not always possible (eg the recent IFT CR ....) Usually CR's are only available to current holders at a certain date (usually after the CR is announced) ...... ie you need to already be a SML shareholder, and then the CR participation is usually proportionally based on your current (SML)  holding???

For us poor ignorant souls who may not even read the SKY threads or be aware or your great success in that investment, it may be helpful if you outline what your intended strategy is for SML and how you anticipate it will work?

Thanks.

Talk about repeat again.......Still waiting for you to share your wisdom.

[Teitei]

Talk about repeat again.......Still waiting for you to share your wisdom.

I am sure you can do some research on SKT?

The thread is there and the answer is rather simple.

CR was at 12c and today it is the equivalent of 23.5c (been a 10 for 1 share consolidation).  One could buy as many rights as one wanted during the CR period at 17c (which I did) and the sp post CR has been as high as 34.8c.

And SKT has been paying dividends too. And there was also the capital return (via 1 for 6 share cancellation of 40c per share).

Obviously have to wait for details of the CR to strategise. If the rights to the CR is not tradable, the game changes again.

[Teitei]

What are bonds telling us today?

You cannot view this attachment.

And what are the bonds telling you today, Minimoke?

[Teitei]

Here's why A2M is a eunuch :

In the interview with the Herald, Bright's Chairman said:

"Both a2 and Bright Food want to Synlait to stabilise. Without Synlait, there would not be prosperity for a2 Milk".

[Teitei]

Resident doomsday merchants have gone very very quiet?

[SemiStrongForm]

Resident doomsday merchants have gone very very quiet?

That's because the commentary from Bright around bankrolling Synlait has strengthened compared to the last few weeks. It's not because people have realised that you are a genius.

[Teitei]

That's because the commentary from Bright around bankrolling Synlait has strengthened compared to the last few weeks. It's not because people have realised that you are a genius.

Hahahaha - me a genius? 

Just go back through my posts and what Bright has said is what I have been posting.

It's about getting the big picture right - not the daily grind of finding every morsel of news and making them sound as bad as possible.

[SemiStrongForm]

go back on my posts and what Bright has said is what I have posted.

It's all about getting the big picture right - not the daily grind of finding every morsel of news and making them sound as bad as possible

Not correct - you have hindsight bias. The market yield on the bonds has collapsed from 170% from 65% in the last 10 days. Perceptions have changed as news has come out from a market perspective. It's not just people on this forum staying quiet.

Separately, it is not about the 'big picture' for a firm in financial distress. The 'big picture' doesn't always hold for a firm going down the gurgler.