Robert Wiseman Dairies Share Discussion Threads

[conk] 24/12/2010 09:07

mguy, you are probably right but i would have thought it might have got a bit of a hit this morning.i do already hold and i am happy with what i have but will buy more at the right price.

[masurenguy] 24/12/2010 08:26

Now you are getting somewhat unrealistic - bit early to hit the bottle on Christmas Eve isn't it !
Have a good one and I'm looking for the price to be back above 400p by this time next year.

[conk] 24/12/2010 08:09

lets have these down to 230/235 by the time i get back from shops

[conk] 23/12/2010 19:03

mguy.just got back from shops with daughter in law,i will take a early drop in the morning hopefuly.only 5k worth though.

[jab118] 23/12/2010 17:44

Blimey what caused the late sell off, mm's short of stock and have a big order is it ? ;-)

[masurenguy] 23/12/2010 16:25

Sudden 5% drop in the share price after 4.00pm. You can currently Buy at 348p so now is your chance Conk !

[broshm] 23/12/2010 15:10

what caused the big drop in share price the beginning of Oct ??

[kenny] 23/12/2010 14:32

The shares go ex-div on the 29 December. They may drop after then or they may not, who knows.

[conk] 23/12/2010 14:23

can we have these back to the 340sp i want to get back in.

[bulldog67] 17/12/2010 14:08

Masurenguy many thanks bg.

[bulldog67] 17/12/2010 14:00

EU proposes to give give dairy farmer fairer cntracts, Darlington and Stockton Times, could someone paste link up.

[jab118] 17/12/2010 13:17

Typo looking very bullish now... ;-)

[typo56] 17/12/2010 13:06

Building up for an exciting close. Might be getting on for 500k in the uncrossing trade.

[jab118] 16/12/2010 11:38

Dare I say it, but it's looking very close to a break out here.....;-)

[randolph and mortimer] 10/12/2010 09:37

The effect of the Scottish weather is yet to be discounted, surely.

[jab118] 10/12/2010 09:31

Could this be the start of the long awaited up trend ;-)

[phil140158] 09/12/2010 18:20

Good news guys - wished I'd had a heap of cash to put into it via ISA or SIPP at 320. Don't even have it on the spread bet account! Still, loads of upside to come. Patience, I think?

[jab118] 09/12/2010 17:05

Alan

Welcome to the new long time holders club mate.

I have accumulated a fair few here since the big drop, hope this rallies soon to a higher level, so I can sit back a relax with this investment...;-)

[terzoalan] 08/12/2010 16:46

Interesting chart. And the reason I own as many good producer stocks as possible. It's being made clear now, in an attempt to subsidise an unsustainable consumer economy, that saving cash is a complete waste of time.

Bought RWD around 323 for the long-term. Have more confidence in the competence of the management than anything else. I'm sure they will pull through times of tough competition unscathed.

In these times I'd rather own something that's mine alone rather than cash, which evidently is not. Although stock can be diluted of course...

[masurenguy] 17/11/2010 07:46

Robert Wiseman Dairies - Our view: hold for now

The mood of investors towards Robert Wiseman Dairies soured markedly in September when it issued a nasty profits warning and pinned the blame on yet another price war between the supermarkets and in the independent grocery sector. Yesterday, the milk producer, which counts Tesco, Sainsbury's and the Co-operative Group among its customers, reiterated that it faced a "period of intense competition" which will inevitably squeeze margins as it churned out a 2.7% fall in pre-tax profits to £21m for the six months to 2 October.

The company, based in East Kilbride, also confirmed its September guidance that this competition would hit its second-half profits by £7m and, assuming no improvement in margins or volume gains, by about £16m in the financial year to March 2012. All of this leaves a taste like a bad pint of Wiseman's product on a hot day. But despite this, the company, which supplies just under a third of Britain's milk, said it was committed to maintaining its existing volumes, suggesting that it is prepared to stand shoulder-to-shoulder with its rivals Dairy Crest and Arla on price. This was demonstrated by Wiseman's turnover, which increased by 6.8%to £452.8m over the half year, driven by sales volumes which were 8 per cent higher. In fact, Wiseman said it had agreed to supply Tesco with an additional 35 million litres of milk a year, which helped to move its shares up yesterday. So there is scope for volume gains to freshen performance.

Wiseman provided investors with some further cream by maintaining its interim dividend at 5.75p a share and cutting its net debt to £21.5m from £26.7m. To mitigate the impact of the price war on its margins, Wiseman is pushing ahead with a programme aimed at reducing costs and boosting the efficiency of the business. Wiseman's shares trade on a rather modest multiple of 8.8 times 2011 forecast earnings, with the stock near a 12-month low after a recent battering. Life is not going to get much easier for the company anytime soon but with the shares so depressed we wouldn't be bailing out just yet. Whatever the general economic climate, people are unlikely to stop buying milk. So, on balance, there is a case for keeping hold of the shares for the moment.