SML - Synlait

[snapiti]

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.

I agree with you beagle.......get out whilst you still can.
As for replacement for JP,  surprised it was not Jenny Shipley   

[Breezy]

I agree with you beagle.......get out whilst you still can.
As for replacement for JP, given the perilous status of the company it would be hard to attract high achievers, surprised it was not Jenny Shipley 

I clearly remember some saying exactly the same thing about XRO when it fell from $45 to $12 before heading over to the ASX, how wrong they were.

[Minimoke]

I clearly remember some saying exactly the same thing about XRO when it fell from $45 to $12 before heading over to the ASX, how wrong they were.

SM1 is already on the ASX - so no saviour there.

[BlackPeter]

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.

Actually - I met John Penno several times and had as well a number of good chats with him. He was clearly one of the driving forces who brought Synlait up to the top (yes, these where the times) ... and some of the programs he introduced rewarding sustainable farming practises for their suppliers are top notch. He definitely is a good guy!

But Synlait was lucky in the beginning (riding the IF wave to China) and so they thought the luck will always stay with them. John was a highly motivated and inspirational leader for the cause, but he didn't had the skills and experiences to prepare the company for the inevitable more difficult times to come ... or to run the company with headwinds. I think he noticed himself that the company needs different skills to further grow ... and the classical mistake was that a board without a lot of relevant experience and skills (a bunch of directors with even insufficient language skills plus a political appointee without governance skills) thought they are able to pick a good CEO to take over from John. Recruiting good people requires either a lot of good luck (or better) good skills. Well, clearly they had been run out of good luck at that stage, and the recruiting skills have been lacking.

Not sure Leon was even an able salesman ... but he still managed to sell himself to the Synlait board as CEO candidate, which tells us a lot about the abilities of the board, doesn't it? Ah well, and with Leon things went steeply downhill (admittedly, not all his fault, some things (like Pokeno) decided before Leon started) - but spraying pink colour over everything clearly did not help.

Board (with John) either slept long and well after Leon's appointment - or more likely just did not know how to intervene. Nobody prepared to admit their mistakes and draw the consequences?

Anyway - very sad story, but agree, plenty of material to learn from.

[Breezy]

SM1 is already on the ASX - so no saviour there.

Yes I know but that wasn't my point, point is never listen to this kind of advice on a random forum.

[Minimoke]

Yes I know but that wasn't my point, point is never listen to this kind of advice on a random forum.

I think even the most objective observer of Synlait can fairly conclude it is in a "perilous state"

[Breezy]

I think even the most objective observer of Synlait can fairly conclude it is in a "perilous state"

It certainly is but holders will have a wide range of entry prices and don't need to be told to sell by some random dog and a fish on an internet forum even if they only have half a brain.

[Minimoke]

It certainly is but holders will have a wide range of entry prices and don't need to be told to sell by some random dog and a fish on an internet forum even if they only have half a brain.

No one is telling anyone to sell. AS far as I can see from the posts below it is a usual forum comment to quit - but of course it is a given everyone is free to do whatever they like to do with their shares and money based on whatever information they choose to accept or ignore.

For me - I reckon the exit point was a long  long time ago.

And there is no acceptable entry point - risk is too high for "investors" thought this may appeal to gamblers.

[Breezy]

No one is telling anyone to sell. AS far as I can see from the posts below it is a usual forum comment to quit - but of course it is a given everyone is free to do whatever they like to do with their shares and money based on whatever information they choose to accept or ignore.

For me - I reckon the exit point was a long  long time ago.

And there is no acceptable entry point - risk is too high for "investors" thought this may appeal to gamblers.

You must be reading different posts to me but yes the exit point was indeed long ago, couldn't see any point in selling now if I was a holder, im sure there are still holders that bought at much higher prices quite some time ago.

[snapiti]

It certainly is but holders will have a wide range of entry prices and don't need to be told to sell by some random dog and a fish on an internet forum even if they only have half a brain.

happy with how my half brain is operating given it has meant I have stayed away from this dog, not sure I fully understand the ones with a full brain choosing to buy or hold this mutt

[Minimoke]

Interesting post made elsewhere.

I have had a look in the last half year  announcement and the last full year results but I can find no reference to any risk associated with upcoming court action.

Yet here we find Synlait in the High Court at a settlement conference with with Life Health Foods.
You cannot view this attachment.

[Breezy]

happy with how my half brain is operating given it has meant I have stayed away from this dog, not sure I fully understand the ones with a full brain choosing to buy or hold this mutt

Your getting your fish hooks mixed up, its holders with half a brain according to Basil.

[BlackPeter]

Your getting your fish hooks mixed up, its holders with half a brain according to Basil.

He is obviously talking about the other half ;

[Basil]

Glad I sold out years ago at $10+  My half brain seems to be working okay.

[snapiti]

bond market pricing in a large haircut for bond holders.......eeeeeeeek 80% returns on offer
happy to watch this train wreck from the sidelines.