SML - Synlait

[Basil]

For their survival I expect Synlait to announce today at the Investors Update that they are withdrawing from B Corp and will instead focus on, not the principles of the treaty, but the principles of capitalism. And the main underlying feature of capitalism is the motivation to make a profit.
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Good luck with that!   Most of us on here know that's exactly what needs to happen, but I think that encapsulates the nub of the culture problem with Synlait.
I doubt their culture will ever change and to me that makes them un-investable.
In my experience even if the directors and senior management wanted to affect a "radical change" such that profit does come first, that can take a very very long time to be embraced by the whole team.  Often the culture is so deeply embedded with the company it cannot be changed even if there was a will at the top to do so, which I suspect is the case here.  Part of me thinks that if this company does fail, that's a good thing as it serves a serious warning to all other companies listed on the NZX that if you want to be the poster child for all things ESG extremism, this is what happens.

[winner (n)]

That Investor Day is today isn't it?

Suppose you had to be an insto big investor to get an invite ....wouldn't want ordinary people to attend eh

And maybe discussions are secret squirrel stuff ......seems that way as no announcement yet ...unless DAY means starts at 3pm

[Basil]

Probably still holding the pōwhiri...or maybe the investor day was cancelled because nobody wanted to attend   

[Minimoke]

Probably still holding the pōwhiri...or maybe the investor day was cancelled because nobody wanted to attend   

I've just called for an update. Pleased to announce powhiri is over. All participant's are now reciting their mihi.

[Basil]

Now the hard mahi starts where what few attendees that are present, try and decipher the truth from all the dross presented.

[winner (n)]

Obviously just a look around ......nothing of interest said or discussed ....and no doubt handed out a lot of warm fuzzies to show it's all hunky dory in Pokeno land.

[Minimoke]

Back in the day they used to publish the Investor Day  presentation. Early in the day. So what is up today?

[winner (n)]

Back in the day they used to publish the Investor Day  presentation. Early in the day. So what is up today?

Nothing to say to us ...only a week or so since the bad news

Maybe the visit was called off

[Basil]

I would be very surprised if there was much interest at all from institutional investors in wasting a day listening to their ESG dribble. 

Just fix your balance sheet and then I'll come and have one of your pink muffins, is what I would have said if I got an invite to attend.

[Minimoke]

I would be very surprised if there was much interest at all from institutional investors in wasting a day listening to their ESG dribble. 

Just fix your balance sheet and then I'll come and have one of your pink muffins, is what I would have said if I got an invite to attend.

Maybe it was only real estate agents showing an interest

[Basil]

Appears nobody was interested in attending so they quietly cancelled it and hoped nobody would notice.
I see the insto's snubbing this investor day as an ominous warning for Synlait.
They have had enough B.S. and broken promises and the only way out of this mess is selling something huge or a massive share placement at a fire sale rock bottom share price to the Chinese or ATM or maybe a takeover by one of those parties and clear out all the useless dead wood and idiotic ESG extremists.

[Minimoke]

Hope they don't default on what's due to supplier farmers

That would be bad

Need to confirm, but farmers may be preferred over bond holders. If I was a supplier I certainly would be tightening up my terms of trade

[Minimoke]

Gee - got down to $1.38 today. All time modern day low. Closed at $1.41. SAMR Certification announcement cant be far away.

[Basil]

Best bid on the bonds is 15.25% and they have traded as high as 15% in recent days.
That's still 85 cents on the dollar though which, for what it's worth, is a lot more than I would pay for them.

[Basil]

Be careful though mate.  Not all bonds are created equal.  These are unsecured subordinated bonds and rank behind all the vast amount of bank debt Synlait have.