SML - Synlait

[Minimoke]

I came up with this cunning plan on 22 Feb when SP was $0.70. And I reckoning a premium of say 25% brought the price to $0.875.

Today SP closed at $0.62. Minor shareholders really need to get in touch with A2M and get them to take up my plan before they lose even more.

This refers to my 4 April cunning plan update

[Waltzing]

crikey ..

[Minimoke]

Gulp! Bonds 75% today


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[winner (n)]

Gulp! Bonds 75% today


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Yep $66 per $100 ...last week about $70

[snapiti]

Great lesson for new investors (not necessarily holders) to follow the SML story.
This is just a repeat of the many companies that have been listed and failed.
Not until the noose is so tight will the company Ann's remove the hype and hope(you have just seen this) to reveal the true hopelessness of the companies position.
Now from here I suggest that the dominant Shers will let this run it's course, coming in at the last minute with a deal that is only beneficial to themselves, smashing bond holders and retail investors.
At what price the SP will be who knows, it's more about the bigger shers using time, the bankers attitude and the position the company has put itself in to put themselves in the best position possible. The company is in the perfect crap position to allow this to happen. I suggest the SP will be a lot lower than it is now unless a sudden trading halt is put in place, then it will be to late to sell and retail investors and bond holders will have to take whatever medicine is dished out.
The only positive being the big SHers won't let this tip over completely, because if the receivers step in the big SHers lose a lot of their power.
Is there any hope for a recovery from here under the current structure, IMO absolutely no show as the bankers and large SHers are in total control of this thing.
There is no benefit to large Shers to formally step in as a white night until the last minute, I suggest informal talks with the bankers are probably already under way.
Like I say this has all been seen before with other failing listed companies so fairly predictable what the outcome will be.
Just an opinion       

[Left Field]

As an ATM share holder I consider myself "well positioned."

[BlackPeter]

As an ATM share holder I consider myself "well positioned."

Well positioned? - not so sure, but probably better than SML shareholders. Time will tell. The will-full destruction of its key supplier and one of their key investments is unlikely to benefit ATM in the long run.

Who in their right mind will do in future deals with ATM given this history?

[Left Field]

Well positioned? - not so sure, but probably better than SML shareholders.

Exactly.

[CG]

Well positioned? - not so sure, but probably better than SML shareholders. Time will tell. The will-full destruction of its key supplier and one of their key investments is unlikely to benefit ATM in the long run.

Who in their right mind will do in future deals with ATM given this history?

Looks like it's "Game Over" for Yashili NZ (subsidiary of Mengniu) and New Zealand New Milk (subsidiary of Lactalis) new a2 milk commercial supply chain partners. They did not receive BP's advice on time and now will be willfully destructed by evil ATM company 
Just out of curiosity, how exactly ATM will-fully destruct SML, by paying hundreds of millions for the products SML supply?

[Minimoke]

I feel a little sad for John Penno who today announces his immediate resignation from the Board.

He started a company that had so much potential. But he leaves it in a place much much worse than it was when it listed.

At IPO investors paid $2.20 a share. Yesterday shares traded at $0.48. Bonds were 77%. Dairyworks still hasn't sold. Banks are breathing down their necks, drowning in debt and they are in a major fight with their largest customer.

So the reality is he has played a part in the substantial destruction of shareholder wealth.

"The Story of Synlait" will one day be a business text book on how not to run a company. I think there will be a chapter on the failure of the Board to transition from a "Mum and Dad family" type business to a serious profitable commercial entity.

So sadly, he has not left a great legacy. He, as part of the Board have made many, many serious errors along the way. The biggest of which I still think was the appointment of a now gone CEO.

I now look forward to see who will replace him. I wonder if A2 will advocate for a seat at the board.

I don't think it will be an easy hire. Who ever gets the seat will be inheriting a poisoned chalice. If it was me I'd be going through with a fine tooth comb the detail in the Director Liability Insurance.

[Minimoke]

And we shoudltn let the day go by without some comment on the appoinbtment of George Adams as chair.

I'll lay my cards on the table - I think he is totally unsuitable.

He is on the Board of Arborogen. A company who has consistently always promised to do more and have consistently failed to deliver. 10 years ago SP was 0.37. Shortly afterwards reached a short lived peak of $0.42 and its been downhill ever since. Closing yesterday at $0.16.

He is also Chair of the Business Leaders Health and Safety Forum. This was the precursor W#nk Fest to DEI forums and ESG values. They came up with such vainglorious  ideals as "Zero Harm". A forum guaranteed to waste money and achieve  nothing.

I think he is unsuitable as a Board appointment and even more unsuitable as chair.

The Board is in desperate need of talent in the Corporate Recovery space.

[winner (n)]

And we shoudltn let the day go by without some comment on the appoinbtment of George Adams as chair.

I'll lay my cards on the table - I think he is totally unsuitable.

He is on the Board of Arborogen. A company who has consistently always promised to do more and have consistently failed to deliver. 10 years ago SP was 0.37. Shortly afterwards reached a short lived peak of $0.42 and its been downhill ever since. Closing yesterday at $0.16.

He is also Chair of the Business Leaders Health and Safety Forum. This was the precursor W#nk Fest to DEI forums and ESG values. They came up with such vainglorious  ideals as "Zero Harm". A forum guaranteed to waste money and achieve  nothing.

I think he is unsuitable as a Board appointment and even more unsuitable as chair.

The Board is in desperate need of talent in the Corporate Recovery space.

You left off Chair of Bremworth

Another struggling company that never seems to recover out of the doldrums

[Minimoke]

You left off Chair of Bremworth

Another struggling company that never seems to get better

I don't know much about Bremworth - so couldn't really comment.

[Basil]

Anyone with half a brain who is still holding either the bonds or shares should follow John Penno out the door and sell.
I'm not suggesting he was ever any good, but his resignation should be seen as a very clear sign of the hopelessness of the situation Synlait face.

I am sure there will be case studies on this at university for years to come, probably headlined something like this "How to completely destroy a perfectly good company with endless obsession about all things ESG".  There's probably no better example of this in the whole world.

[winner (n)]

Anyone with half a brain who is still holding either the bonds or shares should follow John Penno out the door and sell.
I'm not suggesting he was ever any good, but his resignation should be seen as a very clear sign of the hopelessness of the situation Synlait face.

I am sure there will be case studies on this at university for years to come, probably headlined something like this "How to completely destroy a perfectly good company with endless obsession about all things ESG".  There's probably no better example of this in the whole world.

The new Chair is a ESG champion ...thats good

You'd think that ESG mandated funds would be falling over each other to invest in Synlait .....that'll help share price ...or have they done their chipsxalready