Robert Wiseman Dairies Share Discussion Threads

[randomwalker] 17/5/2011 06:10

Results seem very much as predicted, but we do not get our hands on the divi until September.

Probably not a great deal of effect on the shares today, but quite good for the months ahead. 360 seems very sensible.

[goldfeverrush] 16/5/2011 13:52

Some one may have wind that the results are good.Your last chance to buy cheap.

[goldfeverrush] 16/5/2011 10:57

Full fat Milk or sour Milk? Th chart is indicating good news,so the people in the know have been buying.They have targeted the smaller calls which they never before and started to increase the price.

[wallywoo] 16/5/2011 10:42

prelims are out tomorrow I think. Looks like the market is expecting decent news

[goldfeverrush] 16/5/2011 10:00

Looks to be heading towards the £3.52-3.60 range, Milk prices have started to rise again and the cowa produce more milk in spring/summer .

[jab118] 13/5/2011 11:11

big W forming in the chart , gold top is it chaps ? ..;-)

[masurenguy] 01/4/2011 08:00

Positive update even with the further caveats on the impact of fuel price hikes. This is one of the three dominant milk producers in the UK market (the others are Arla & Dairy Crest) and the one with the most productive capacity and the strongest balance sheet. At the interims the BoD also confirmed their commitment to maintain last years dividend of 18p which provides an excellent yield of 5.2% at todays price of 342p.

[haywards26] 20/3/2011 19:01

Below report may be of interest (it is free to download)

[terzoalan] 18/3/2011 18:16

Looking quite positive here. The Co-op deal again shows the quality of the management. Will be looking to double my holding if there is another drop below my original purchase price of 323.

[bostonborn] 16/3/2011 18:06

Increased milk supply deal with the Co-op announced today & is due to start August 2011

[jrr774] 08/3/2011 16:21

I can only think shorters have moved on to another target. Market is now factoring in civil war in Libya and oil at $110 - 120 for the foreseeable (albeit dipped today on news of OPEC production rises) yet RWD has gone up to 319 this week. In an article posted previously RWD state every $10 increase in oil price adds 8M to their cost base. I expect to see sub 3.00 again.

[scotch broth] 08/3/2011 12:36

Correction.On revisiting my local Tesco milk is back on offer again.Looks like they acted prematurely.

[phoenix knight] 06/3/2011 13:26

Scotch broth - I am also interested where you found out about the rise in the milk price at Tesco.

Looks to me like for 4 pints it is still at £1.25, or on offer fom 2 for £2 - the offer is due to end on 22/3 - see below link

[masurenguy] 04/3/2011 14:27

SB, where did you get that information - please reference a link to substantiate it ?

[scotch broth] 04/3/2011 12:42

Milk up 25% at Tesco.Special promotion over.Will it be passed on to RWD?

[conk] 01/3/2011 07:42

kiwi..quite a lot of costs to be paid between farm gate and shop shelf.

[kiwi2007] 01/3/2011 00:30

Well, plenty of margin to play with. RWD pay 26p a litre to the farmer and Tesco bang it out at circa 75p a litre.

[muffinhead] 28/2/2011 23:23

Masurenguy - 17 Feb'11 - 08:43 - 212 of 230
£480 capex completed...and market cap is now?

Milk = food + water
better than any regulated utility imo

[muffinhead] 28/2/2011 23:13

The supermarkets actions are unsustainable...i am seeing many things going up and dairy produce will follow

The current situation is creating an opportunity for a longer view

anyone notice the 500000 "o" trade today...don't tell me that was a delayed sell by Mr Wiseman!

[kiwi2007] 28/2/2011 21:53

Diesel and plastic bottle requirements add £8m on to the company's costs with every $10 rise in the global price!

Asda and Tesco, have committed to permanently lower milk prices - others to follow!

Consensus EPS to drop from 37p 2011 to 29p 2012 - dividend held at 18p for next two years.

[kiwi2007] 28/2/2011 21:48

After a little research I'm able to answer most of my own questions :o)

Robert Wiseman Dairies is the latest milk buyer to increase the price it pays dairy farmers.

Wiseman is to increase its standard-litre farmgate milk price by 1p/litre to 26.72p/litre from 1 April, placing it at the head of the field on contracts not aligned to majr retailers.

The move follows a 1p/litre increase for 1 March announced last month. The processor said the rise reflected a continued strengthening in the commodity value of milk.

The latest move will places Wiseman's standard-litre price ahead of those offered by its major competitors in the fresh milk processing sector, for dairy farmers not aligned to major retailers. Last week Arla Foods announced a 2p/litre rise to 26.2p/litre.

In a statement, Wiseman said it would "continue to reflect momentum in the market for farm gate milk, whilst maintaining its competitive position".

[kiwi2007] 28/2/2011 21:20

This may seem like a silly question but how does RWD's business model work?

How is the price they pay for the milk fixed? Are they tied into long fixed price contracts for instance? Are they having to pay producers more now but unable to recoup from the customer?

Can they 'divert' the milk they buy away from the s/markets, either abroad or by conversion to milk solids (which fetch a pretty high price on world markets)? Or is this being done by the producers(farmers) who are cutting out RWD?

Here in NZ milk prices in our supermarkets have risen sharply because of international demand - I'm not sure why the UK's milk prices aren't doing the same. Especially as NZ's production costs are much lower (generally grass fed beasts with no grain input as in the UK).

[conk] 28/2/2011 21:09

mguy..i thought that at 325p,,,wrong again.

[masurenguy] 28/2/2011 20:52

Not much lower I suspect. Even with their own worst case scenario for next year, with profits being reduced by £16m, they would still be on a forward PER of just 9 with an annual post tax profit that exceeds their existing debt. This has been oversold but of course that doesn't mean the market can't remain irrational for some time to come !