Lees Foods Share Discussion Threads

[pugugly] 17/3/2011 11:17

Market does not lke at the moment. share price broken down through all all moving averages. Possible support in the 150-160p region. If does not hold then in free fall. A very illiquid stock so a break down could gather its own momentum.

Possibly under heavy pressure on cost of materials given food price inflation.

Any other thoughts ?

[cockneyrebel] 23/1/2011 12:31

I still like LEE. The directors have sking in the game and while short term the increased costs cause earnings growth to slow, eventually inflation is the friend of companies wanting to raise prices imo. It's a job telling your customers you need to raise prices when there isn't inflation but once you have thatexcuse you can increase prices and margins imo.

LEE might not be an exciting short term punt but with a yield of nearly 4% and excellent growth potential further out, while they might not look cheap as they did I think they have a lot of upside going forward as they raise prices imo.

Obviously tho they aren't going to be as exciting over the coming 6-9 months as they have been in the previous months imo.

Understand your view tho simon.

CR

[simon gordon] 23/1/2011 12:24

I've sold out, the input cost inflation on raw materials and down the pipe wages, will probably continue to hit margins.

Good fortune.

[rbcrbc] 20/1/2011 16:50

The share price will get dessicated....

[cockneyrebel] 20/1/2011 14:59

:-)

CR

[strollingmolby] 20/1/2011 14:56

Eh up, RNS out. New option scheme announced.

Staff can elect to be paid out in cash or coconuts...

[cwa1] 14/1/2011 15:13

Directors' Dealings

Lees announces that on 14 January 2011 Clive Miquel, Chief Executive, exercised options over 20,000 ordinary shares of GBP1 in the Company ("Ordinary Shares") under the Company's Executive Share Option Scheme.

The exercise of the options was partially funded through the sale by Clive Miquel of 8,814 Ordinary Shares at a price of 190p per share on 14 January 2011.

Following the exercise of options and the sale of shares, Clive Miquel's holding has increased to 92,659 Ordinary Shares in the Company, representing approximately 3.81% of the enlarged share capital of the Company.

The 20,000 new Ordinary Shares are expected to be admitted to trading on AIM on 20 January 2011.

The total number of Ordinary Shares in issue following the exercise of options is 2,434,751.

[cwa1] 14/1/2011 15:11

CR....groan...... ;-)

[strollingmolby] 14/1/2011 12:43

Are you able to stick that in the header, CR? Forget company logos, write-ups, etc... the snowball dress will suffice... ;o)

[cockneyrebel] 14/1/2011 12:40

Bottomed out here perhaps.

buying might snowball now CWA1 :-)

CR

[cwa1] 12/1/2011 14:42

All that coconut, the dress must have been transported by securicor!!

[marknicho] 12/1/2011 14:34

Looks like a bounce off the trendline then. Added a few.

[cockneyrebel] 12/1/2011 13:41

Yes please :-)

Ticking up a bit today here.

CR

[strollingmolby] 11/1/2011 12:59

Now here's one dress I'd like to get my teeth into...!

[strollingmolby] 11/1/2011 12:47

All these articles are raising the coconut issue as though that is the biggest input cost! LEE included it as an example to demonstrate how ONE of their ingredients' cost was rising - this was probably the biggest cost increase.

"Towards the end of the year we were hit by unprecedented commodity and packaging cost increases. As an example, the price of coconut, an important ingredient for Lees, has more than doubled over recent months."

I can't imagine the sprinkling of coconut on a product is material in the overall cost - wheat, sugar, flour, eggs, milk, cocoa & packaging costs will each be higher I'd imagine.

[cockneyrebel] 11/1/2011 11:28

Well looking very cheap here to me now and even cheaper if you net off that 7p+ final divi.

I think LEE pass the costs on and even if there is a lag by H2 they are going to be back up and making even more profit.

Guess some want to use the money to tickle around elsewhere - I'm holding tho.

Obviously do your own research etc.

CR

[cockneyrebel] 06/1/2011 17:45

I've got a love-r-ly bunch of coconuts..... :-)

Even if that downgrade proved right LEE are going to do 25p+ eps and pay a 7p+ divi, more than 3 times covered.

Net Cash as CWA1 says. Fwd PE 8 and 3.5% yield,

That's too cheap to me - I'll keep holding - eventually the price increases will kick in.

CR

[mymini] 06/1/2011 16:16

Interesting piece about the rising price of coconuts.

[cwa1] 06/1/2011 15:47

Just looking at the cash position. The company could be approaching £750,000 of nett cash if the TS is to be believed in respect to cash(and there's no reason to disbelieve it!)at the end of the next period. This for a company that has a current market cap of £4.8m, profit making, excellent cashflow, good yield, etc seems a little on the mean side IMHO. The potential commodities hit should surely be mitigated away fairly quickly and leave these looking cheap.

There, I've almost persuaded myself ;-)

[cwa1] 06/1/2011 15:21

Many thanks for that sg. I suppose that it could well be GCI followers that are seeling that is causing the downwards pressure....

Happy to hold on tight as I'm sure that they will mititgate against these extra costs in the medium term and we will, hopefully, see creditable results next time around.

Doesn't look expensive at around these levels IMHO.

[simon gordon] 06/1/2011 14:49

GCI - 6/1/11:

Baker Lees Foods, the company behind the Macaroon bar released a trading update in which it warns the increase in the price of coconut may impact its business.

The Scottish concern said that sales for the year to December were £18.7m, 2.5% ahead of 2009, while pre-tax profits are 'in line with current market expectations'.

However, despite the upbeat note, chief executive Clive Miquel warned that 'towards the end of the year we were hit by unprecedented commodity and packaging cost increases' and noting that the price of coconut, used in such Lees products as the macaroon bar and the raspberry coconut-ice has 'more than doubled in recent months.'

Following the update, house broker Shore Capital drew attention to the increase in the price of coconut, which they said would lead to a 'time lag in costs recovery' and downgraded profit forecasts for 2011 from £1 million to £800,000.

Recommended by Growth Company Investor last July in a feature on the food sector at 149.5p, shares have put on 44% since, and are currently trading at 215p. Due to pressures from rising coconut prices we think that now may be an appropriate time to lock in profits.

[cockneyrebel] 06/1/2011 11:59

Agree CWA - the cash generation and the net cash is avery significant attraction :-)

I already have loads or I might have been tempted to join you - got to keep it sensible. I think these will look diferent afte the results tho - that 7p+ annual divi comes all as a final divi too - which is nice

CR