Wynnstay Share Discussion Threads

[rarther] 03/4/2015 04:01

The milk quota thing has been in the pipeline since 2003 and industry is fully aware of the challenges and opportunities it presents, not like a sudden detrimental announcement. I think it has already been priced in to the commodity price over the last year or two what with the forward looking derivative based nature of markets. If you look around at competitors they have not slumped 10% in the last few days. Maybe there is an element of investors being spooked by this but also the thing which is specific to WYN is many holders sitting on long term gains and price falling through a key psychological resistance point of 500p. I doubled my holding yesterday because it has fallen too much.

[jeffian] 02/4/2015 23:30

The difference is, rarther, that the milk quotas announcement came out after their "on target" statement, so the question is, does it make any difference and, if so, what?

[rarther] 02/4/2015 21:08

£90m is very cheap when they can easily spin £9m profit this year come rain or shine.They only just stated business is on target so this sudden 10% drop in value is a bit hysterical.

[jeffian] 02/4/2015 19:06

I'm not quite clear on why WYN shares have had such a dramatic reaction to the milk quotas announcement. Are dairy feed and supplements that big a part of their sales? Obviously, the market never likes change and uncertainty but I doubt the UK dairy industry will disappear completely and as they say "Wynnstay's diversified spread of agricultural activities helps balance the effect of volatility within its markets". It's such a lightly-traded share, I suspect the price over-reacts to any sales. Let's hope it works the other way!

[rarther] 02/4/2015 09:59

Falling knife!! Looking to catch it but it looks very sharp!

[rarther] 01/4/2015 08:55

Looks like investors are spooked by the lifting of EU milk quotas which is expected to send dairy prices to new lows.Headlines are ominous but I'm not so sure this is bad for wynnstay as their supplement sales should increase if milk industry production volumes go up, although their margin may drop.Despite milk market collapse of 2014 they held both top and bottom line because of diversification so i doubt any further deterioration of that particular market will hurt the company much.

[undervaluedassets] 25/3/2015 08:22

I am forever waiting for the better price on great stocks: As a result I often find myself watching those stocks (where I am waiting for the better price) soar and leave me behind (Whitbread springs to mind)

WYN seems like a reasonable price right now and with the good statement I had a nibble yesterday.

Outlook looks good for this solid, unflashy business.

[topvest] 24/3/2015 21:14

Yes, very upbeat. Personally I've had these on my watch list for a while and was expecting a profit warning to take advantage of so that I could enter at a reasonable price. I'm not tempted at the current price, as they are fairly valued, but they are a good solid business.

[rarther] 24/3/2015 09:41

It's a lot more chipper than last year's one that's for sure. Last year was very difficult and they did very well to come out flat. This year the grass looks a lot greener and the company value is a lot lower.

[redartbmud] 24/3/2015 08:27

Solid comment today.

AGM Statement

Wynnstay, the agricultural and retail group, will be holding its Annual General Meeting this morning and is pleased to make the following comments on current trading:

The Group has made a good start to the new financial year, with both the agricultural and retail divisions performing in line with management expectations.

Feed demand over the winter period has been encouraging, with increased volumes over last year. Fertiliser sales have increased over the last few weeks after soft demand in the autumn and we expect a longer season as customers buy on a spot basis. Demand for spring seed has been good and our reputation for high quality product, service and advice remains a strong support to sales. In grain trading, volumes have increased over the equivalent period last year but farmers are still holding significant stock from the 2014 harvest.

Across our specialist retailing activities, our Country Stores, which are geared towards the needs of farmers, are performing well and Just for Pets, our pet products outlets, continues to experience like-for-like growth. We anticipate adding new stores to both chains in 2015.

We recently completed our planning exercise to map out potential organic and acquisitive growth opportunities for the Group over the next five years. While there are short term challenges for the industry, particularly around the current level of output prices, especially for the milk sector, we remain positive about prospects for Wynnstay and intend to continue to expand on the broad foundations established over many years.

[rarther] 22/1/2015 09:18

Interesting that their country stores/pet shops are now turning more profit than their core feeds business. I would be interested to see a separate breakdown of like-for-like sales on their existing stores and the acquired CPF stores rather than just one turnover figure which tells us little. I suspect neither are growing explosively as the headline suggests.

[redartbmud] 22/1/2015 08:04

jelf

The industry has it's own problems at present. They have been well publicised. Wyn was formed out of farmers co-operatives, and the farmers still hold big stakes. The company works closely with them.
My shares are nicely tucked away in the bottom drawer, and will no be comming out.

I am not a farmer.

red

[jeffian] 21/1/2015 23:45

Results seemed a bit flat to me but the market seems to like them.

Mind you, the shares are so little traded, it doesn't take much to shift them either way.

[rarther] 18/12/2014 13:06

These farmers clearly a tight lipped bunch! Not much info available anywhere.Only info i can offer is...1) 2 new wynnstay country stores added since last update, according to their website.2) feeds commodity prices have dropped which may cause lower margins in that division, according to NWF trading update yesterday.Holding for results... £100m cap offers good security with profit approaching £10m. Can't go much lower without a big drop in income imo, can go back above 600p with good results.

[rarther] 06/12/2014 05:48

In the absence of any end of year trading updates, does anyone here have any rough idea whether the carmarthan and pumsaint acquisition is moving along well or stumbling?

[rarther] 04/12/2014 09:54

Bottom reached last month... now the buyers are assembling.

[3rd eye] 04/10/2014 14:44

Is this the low?

[rarther] 04/10/2014 13:04

i believe WYN will not trade below £10 within a couple of years with acquisitions stripped out. On this P/E It requires a profit of £12.5m which they can achieve with CPF acquisition synergies, continued growth in their retail arm and widening margins on feed from the global food crisis.

This profit-taking break is the perfect opportunity to grab a stake and i have done so...

[jeffian] 18/8/2014 15:50

Seems to be drifting a bit. Pity they don't put out periodic trading updates. No news planned until January results which is a long time to wait.

[9degrees] 05/8/2014 21:42

good set of results from NWF today- bodes well

[jeffian] 01/7/2014 11:14

Jaknife,
Change those t's to capitals and it'll form a link.