||ORD SHS NPV
||EPS - Basic
||Market Cap (m)
|Equity Investment Instruments
Real-Time news about Palandri (London Stock Exchange): 0 recent articles
|compoundup: I have to admit having spent a few minutes getting a take on Palandri after seeing Knowing's ramp on another thread. I hope this doesn't encourage him/her to further repetitious ramping but rampers are a fact of BB research. They are easy enough to recognise and you have to use/ignore them as you see fit.
The numbers and the business model look interesting and might bear further investigation but the "wine lake" and the fact that it is a commodity product stand strongly against the case for investment. Clearly the business model is not understood by investors and the share is unloved by value traders so it is not the time to invest so far as I can see. A history of failing to meet headline expectations and a large drop in earnings last year don't help the investment case for the majority who don't do their own thorough research.
I looked for the stuff in a local Waitrose last week and found just one white variety. I like unpretentious French wines and found this semillon to be typically Australian - full of fruity tastes - that IMHO are a passing craze. (I don't want to argue the point and I may be proved wrong). A few days later I found both a red and a white on the shelf in another larger Waitrose but frankly they did not stand out among a large selection of better known Australian wines around them. I didn't buy the red because I am not a fan of cabernet sauvignon, (some of them are nice to the taste but most of them give you the sort of headache that you used rely on Hirondelle for - if you can remember that far back). Cabernet sauvignon is another "craze" IMHO and people will realise eventually that there are a lot of friendlier grapes out there but that is not the point.
This company is not for me - at least until there is positive newsflow and relative strength in the share price. The interesting business model may begin to show some promise and I might have another look. I would also like to see a wider range of the products on shelves here in UK - their self-stated major target market.|
|asdfg3: Results out any day now. In March sometime
Brewin Dolphin have brought out a coverage note on Palandri with 25p price target versus the share price now which is 9p
Earnings were 2p last year, forecast to jump to 2.3p this year, so price to earnings ratio is less than 4.|
|asdfg3: Results are out this month, Brewin Dolphin have 25p price target
the share price now is only 9p
|red ninja: Shearlock Stock Picks tipsheet update :-
Palandri update rallies share price
Australian wine producer and manager Palandri provided a 'strategic' (ugh!) update last week that rallied the shares back up to 10p (I tipped them here in May at 15p). There were several positives.
First, the business is planning a substantial expansion in winery capacity to allow for growth in premium wine sales to 500,000 cases a year by 2010. It is also looking to increase its control of Western Australian vineyard acreage by some 70 per cent over that period and target more northern hemisphere sales especially in UK supermarkets where it has been making good inroads. There is talk of a first dividend 'in the near future'.
As importantly, Palandri wants to simplify its structure, currently one of the impediments to a strong investment following. With so much of production owned by managed investment schemes, wine sales growth and profitability are hard to predict.
Clearly, the share price performance has been disappointing but if you can afford to view this one as a long-termer it should come right. Hold.|
|red ninja: Shearlocks small cap picks :-
Palandri hits target
Profits bang in line with expectations at A$3.1 million failed to revive Palandri's share price on Friday, which remains stuck at 11p (compared with a recommendation price in May of 15p). The market capitalisation today is around three times earnings. Clearly, the shares are cheap but the market is either thoroughly disinterested or incapable of understanding the complex structure of the company's wine undertakings.
Palandri has penetrated more European supermarkets in the past year and entered Germany and Switzerland for the first time. The business is moving up-market and recently introduced another property trust through which to acquire more vineyards. The shares will have their day. Hold.|
|red ninja: Shares still seem to be falling, but could this increase possibility of a takeover as speculated on in this Ozzie article :-
Palandri acts against non-payers (2 December 2004)
Defaulting investors in agribusiness managed investment group Palandri are set to lose their units as the company commences proceedings against them.
Palandri chief executive Darrel Jarvis said in the first MIS scheme 98 per cent of investors had paid the full amount for their units, while 10 per cent in the America wine scheme were in default.
"We made a call to the investors in the schemes and not all fulfilled their obligations to us," he said at the company's annual general meeting (AGM) in Sydney on Friday.
"The total number defaulting is less than 100 clients out of total of about 3000 investors."
The first scheme was investing in the Margaret River winery and Palandri brands. Investors were required to invest $11,000 up-front for each unit, with further payments totalling almost $9000. They also had to invest a further $2000 for 400 shares in the wine production company.
The America scheme required a $11,000 up-front payment and subsequent payment of $10,450 for wine units and shares in the company. The move was to enable Palandri to market its wine in the US.
Jarvis said discussions with the defaulting clients and their financial advisers had been running for months, but the company was forced to act.
"We have been trying to find ways to support these clients," he said.
"Some clients have now found themselves in difficulties as the second and third payments became due and we offered various ways to help them."
The units in both schemes attracted up-front tax deductions from the ATO. Both projects have Product Rulings issued by the ATO, but Jarvis said he did not know what will happen now with tax deductions.
"We have had no discussion with the ATO about the defaulting investors," he said.
"It will be up to them to make arrangements with the Tax Office."
The board of Palandri came under questioning from a previous director Rob Palandri over the capital adequacy of the company.
Palandri, who is now running Great Southern Plantations wine investment schemes, noted wine sales for the Margaret River producer were down 65 per cent in the US in 2003/4 and 50 per cent in the UK.
"The decline in sales in the US is substantial and with these statistics, how much capital will the company need to survive the next 18 months?" he asked at the AGM.
Palandri finance director Chris Brown declined to give a figure saying the company had now got over its difficulties with its bankers in February this year.
The wine producer is seen to be vulnerable to a take-over from other West Australian wine makers, with its share price at all-time lows on the London AIM market.
Apart from Rob Palandri, some directors of the listed wine maker Ferngrove Vineyards were also at the AGM and it and Great Southern are seen as potential predators of Palandri.|
Palandri share price data is direct from the London Stock Exchange