# CLV - Clover Corporation



## GreatPig (24 June 2005)

*CLV - Clover Corp*

Noticed this the other day and thought it might be forming a double bottom.

Bought in at 16.5 cents, closed today at 19 cents (one of the few greens in my portfolio today ).

If it does continue to form a double bottom, the price target is about 32 cents.

Of course the 60-70 cent range that it's been to twice before would be even nicer , but hey... I'll settle for 32 cents.

Now watch it gap down to 10 cents and then go into receivership...

Cheers,
GP


----------



## Fleeta (26 June 2005)

*Re: CLV - Clover Corp*

Yeah, I like it too, although I bought in at 21c.

On fundamentals it looks good, they are in a growth market (soy products - health market) and are now paying out dividends. I think the reason why they went down was that they have moved away from the business that previously made them money and are now focussing on their soy products...which is a risky move. If they pull it off though and release some good results, the sky is the limit.


----------



## redback (18 May 2008)

This stock seems to be dead in the water lately with absolutely no market interest, which I suppose is not surprising due to the lack of effort shown by directors to raise it's profile, considering that they have just spent a good amount of money on re-organising their structure and still managing to show a small profit the sp is disappointing to say the least. I suppose the total lack of news is now leading to frustrated holders starting to sell, I notice there is one large seller who appears more often lately, the large contract they have is due to show some revenue's, but who knows?, directors might but they aren't telling anyone, it seems pretty poor on their part for not at least making some sort of an effort to inform the market or their shareholders.


----------



## So_Cynical (28 August 2009)

I brought into this great little company today (19 cents) Clovers main business is the manufacture of HiDHA micro-encapsulated tuna oil that's used as a health additive in baked goods and infant formula as well as other health drinks/products....they also have a soy foods manufacturing division that makes a wide range of soy foods.

Clover are Market leaders with a global distribution network in a growing niche market....they pay fully franked divis and have been in business for 21 years, flying under the investment radar for all that time.

http://www.clovercorp.com.au/


----------



## So_Cynical (17 September 2009)

So_Cynical said:


> I brought into this great little company today (19 cents)




Out today at 21 cents...10% profit for 3 weeks in  and the shares are still cum dividend status, when making money is this easy it really makes u wonder :dimbulb: anyway i like Clover so left a little in for later.


----------



## Garpal Gumnut (17 September 2009)

What is it?
What does it do?
Any recent charts or analysis on this.?
Sounds like they squeeze tuna and soy.
Do I put my hardearned in to this?
I can squeeze tuna and soy.

gg


----------



## So_Cynical (17 September 2009)

Garpal Gumnut said:


> What is it?
> What does it do?
> Any recent charts or analysis on this.?
> Sounds like they squeeze tuna and soy.
> ...




I did a brief overview in my first post  Clover do micro-encapsulated tuna oil, the idea is people can get the health benefits of tuna oil, OMEG3 etc without the fishy smell and taste, and at a low cost....Clover is a world leader in this field and actually developed the technology, they have the beginnings of a global distribution network, a manufacturing plant in Melbourne and a long term supply agreement (tuna oil) with HJ Heinz - Starkist in American Samoa.

Clover first traded in 1999 and after almost a decade of steady conservative growth has paid a fully franked dividend of 1c in 2008 and 2009...Clover is a true Aussie success story flying under the radar.

Here is a CSIRO case study i found http://www.foodscience.afisc.csiro.au/microencapsulation.htm

And an Investor briefing from a few months ago http://www.asx.com.au/asxpdf/20090505/pdf/31hf9tvhj80y8h.pdf


----------



## Garpal Gumnut (17 September 2009)

So_Cynical said:


> I did a brief overview in my first post  Clover do micro-encapsulated tuna oil, the idea is people can get the health benefits of tuna oil, OMEG3 etc without the fishy smell and taste, and at a low cost....Clover is a world leader in this field and actually developed the technology, they have the beginnings of a global distribution network, a manufacturing plant in Melbourne and a long term supply agreement (tuna oil) with HJ Heinz - Starkist in American Samoa.
> 
> Clover first traded in 1999 and after almost a decade of steady conservative growth has paid a fully franked dividend of 1c in 2008 and 2009...Clover is a true Aussie success story flying under the radar.
> 
> Here is a CSIRO case study i found http://www.foodscience.afisc.csiro.au/microencapsulation.htm




thanks mate.

My only concern is that Fish Oil Capsules are as cheap as chips, and do the same thing..

I'll keep an eye on it .

Thanks for the info mate.

gg


----------



## So_Cynical (11 January 2010)

Clover traded above 30 cents today for the first in since 2006 so my buy in at 19 cents a share back in August is looking good, since then we have had a profit upgrade and no bad news along with the general market rally to help the SP along....next i suppose would be a dividend increase or an interim divi. :dunno:


Its a great looking chart. 
.


----------



## sambek (11 January 2010)

Very Interesting stock and seems to have traded in a very long term sideways range.  19 - 24 cents.  It appears to be trading at new highs now. however I would be looking and waiting for a technical entry when and if it forms support around the 24-25c. One thing I was taught which has also stuck with me, is that a stock will always return to value. I think it was called the rubber band effect, the further away from value a stock goes (either up or down) the quick it will return back to value.  But then again what really is value.

You must really be enjoying your entry at 19c.  Nice Trade.


----------



## So_Cynical (11 January 2010)

Well summed up sambek...Clover is a VERY rangy low volume stock, 19 cents was the bottom of that range (at the time) and i simply watched and waited, took most of my money out a few weeks later at 21, still plan your trade and trade your plan....so i have some capital still in with my free carry profit and its paying me about 7% (gross) dividend.


----------



## So_Cynical (23 February 2010)

Clover hit a new 5 year high today at the open (32 cents) and stayed there all day, perhaps in anticipation of a good half year report due out tomorrow, back in November they announced a +70% increase in sales revenue and a +40% increase in profitability for the first four months of FY10 compared with FY09.

http://clients.weblink.com.au/clients/clover/article.asp?asx=CLV&view=2574184
~


----------



## So_Cynical (24 February 2010)

So_Cynical said:


> Clover hit a new 5 year high today at the open (32 cents) and stayed there all day, perhaps in anticipation of a good half year report due out tomorrow.




Well today's half year results announcement was good...and yet Clover fell about 16%  i can only assume that the market was expecting an interim dividend of some kind. :dunno:


Profit after tax up 18.8%
Significant increase in sales revenue of 80%
Sales from tuna oil and encapsulated powdered products increased 83%
The Board has resolved that no interim dividend will be paid.

http://clients.weblink.com.au/clients/clover/article.asp?asx=CLV&view=2584005


----------



## So_Cynical (31 August 2010)

Clover's Preliminary Final Report out the other day...highlights.


Revenue from ordinary activities Up 56.6%
Total sales revenue increased 65.4%
Dividend up 25%
Chinese market sales advanced by some 90%
$12.15 million in cash

http://clients.weblink.com.au/clients/clover/article.asp?asx=CLV&view=2603824
http://clients.weblink.com.au/clients/clover/article.asp?asx=CLV&view=2603827

Unfortunately Clover has decided dump there soy business and cop the full impairment (loss) of there soy investment (JV) that has massively under performed....other than that negative, there numbers would be brilliant, next year should be stunning.


----------



## FrontRunner (28 July 2011)

Recent Positive announcement. Any thoughts on what impact this will have on future cash flows?

Page 1 of 1
Clover Corporation Limited
ABN 85 003 622 866
ASX ANNOUNCEMENT 28 July 2011

CLOVER SIGNS 3 YEAR GLOBAL SUPPLY AGREEMENT WITH MAJOR
MULTI-NATIONAL INFANT FORMULA COMPANY
Clover Corporation Limited and its subsidiary Nu-Mega Ingredients Pty. Limited (Nu-Mega)
are pleased to announce that they have signed a three year global supply agreement with a
major multinational infant formula company to supply Omega 3 and Omega 6, Hi-DHA tuna
fish oil and microencapsulated Driphorm powders. The Driphorm powders provide a stable
biodelivery system for marine and algal oils.
This agreement continues a beneficial technical and commercial relationship of more than
10 years during which Nu-Mega has been a major supplier of Omega 3 ingredients. For the
past decade Nu-Mega has been at the forefront of providing innovative microencapsulated
DHA ingredients for use in infant formula and foods. The current agreement recognizes Nu-
Mega’s ongoing efforts in new product development and innovation.
Company Contacts:
Ian Brown – Managing Director +612 9232 7166
Ian Bloodworth – Company Secretary +612 9232 7166
Media Enquiries:
Fortbridge: Bill Kemmery +612 9331 0655 or mob 0400 122 449


----------



## So_Cynical (31 August 2011)

I took my second bite at the Clover Cherry today, first time in a little over 2 years that ive actually been able to have capital available when there has been enough weakness in the CLV SP for me to enter.

My reasons for wanting to trade & to hold CLV for dividend yield and growth are already well documented in this thread so i wont go over them again..needless to say all past reasoning and assumptions stated by me in this thread have proved to be well founded and i continue to be long term bullish for Clover.

The 4 year chart is spectacular....i dont think ive ever seen a better 4 year chart this year, the clover SP didn't even register the GFC dip or the recent 2nd dip..just cruised along sideways until the next run up.
~


----------



## skc (1 September 2011)

So_Cynical said:


> I took my second bite at the Clover Cherry today, first time in a little over 2 years that ive actually been able to have capital available when there has been enough weakness in the CLV SP for me to enter.
> 
> My reasons for wanting to trade & to hold CLV for dividend yield and growth are already well documented in this thread so i wont go over them again..needless to say all past reasoning and assumptions stated by me in this thread have proved to be well founded and i continue to be long term bullish for Clover.
> 
> ...




Jessica Alba is spectacular. Not sure I use spectacular to describe that chart. 

An analyse report here if you are interested. 
http://www.microequities.com.au/admin/reports/CLV27062011.pdf


----------



## So_Cynical (20 March 2012)

So_Cynical said:


> I took my second bite at the Clover Cherry today, first time in a little over 2 years that ive actually been able to have capital available when there has been enough weakness in the CLV SP for me to enter.
> 
> My reasons for wanting to trade & to hold CLV for dividend yield and growth are already well documented in this thread so i wont go over them again..needless to say all past reasoning and assumptions stated by me in this thread have proved to be well founded and i continue to be long term bullish for Clover.




Clover hit 36c today so my 0.335 sell order was finally filled...thus giving me closed trade #82 and winning trade #68, almost 7 months in for a 21.8% profit...so happy now i didn't take a lousy 10 or 12% ~ i really needed this, closing a trade in good profit feels so good after the last 9 months of melancholy....maybe now its back to normal.

My average CLV price is now 22 CPS and my free carry is up to 70%


----------



## So_Cynical (7 August 2012)

Clover trading at an 8 year high today and closing on the high of 0.435 proving that not all Australian based manufacturers are in trouble, some are doing very nicely thank you...its been a stellar 12 months for CLV going from a 52 week low of 0.27 almost 12 months ago to today's close of 0.435 ~ a 60%+ increase in the share price.

Clovers Preliminary Final Report should be out in 5 or 6 weeks time...go you good thing.


----------



## So_Cynical (22 March 2013)

Clover released their HY report this week, all good news as per usual...highlights below.


Revenue from ordinary activities up 12.5%
Profit from ordinary activities after tax attributable to members up 56.6%
Maiden interim dividend $0.005
The company expects to continue to have strong demand for its products in the second half of the financial year.

And trading at an all time high this week at and above $0.59

http://www.clovercorp.com.au/images/stories/pdfs/financial-reports/CLV_HY_13_App_4D.pdf


----------



## So_Cynical (21 September 2013)

In yesterday for Clover trade #3 ~ first proper trade with the IB account to.

@ 0.505 with this significant dip of the last 2 days, has to be an opportunity..i haven't gone over the latest report with a fine tooth comb but the headline figures looked ok so cant see any cause for the recent SP weakness.

Can someone enlighten me?


----------



## Klogg (21 September 2013)

So_Cynical said:


> In yesterday for Clover trade #3 ~ first proper trade with the IB account to.
> 
> @ 0.505 with this significant dip of the last 2 days, has to be an opportunity..i haven't gone over the latest report with a fine tooth comb but the headline figures looked ok so cant see any cause for the recent SP weakness.
> 
> Can someone enlighten me?




Due to potential problems with their milk formula in NZ I believe. They're not sure of the potential impact to market share or profits.

Not to mention that a stronger AUD favors them, and that the CEO is retiring at the end of FY14.


----------



## So_Cynical (21 September 2013)

Klogg said:


> Due to potential problems with their milk formula in NZ I believe. They're not sure of the potential impact to market share or profits.
> 
> Not to mention that a stronger AUD favors them, and that the CEO is retiring at the end of FY14.




Thanks for the input Klogg

I must have a proper read of the latest report, very lazy of me to just accept that its not relevant to the big picture...ive been reading/listening to Malcolm Caldwell's book "blink" its about thin slice analysis and other issues of perception.

Cant help but think that i liked Clover the first time i saw it back in 2009, did my initial analysis and still liked it and have profited ever since....and still going with that.

First impressions have value...at its core Clover is a great business, a business with potential.


----------



## Klogg (21 September 2013)

So_Cynical said:


> First impressions have value...at its core Clover is a great business, a business with potential.




Very true. The problems with powder contamination (thought it was formula issues - apologies) isn't a major one and will be forgotten soon. Their current CEO has given them a year's notice to find a successor also, so this shouldn't cause any issues.

The only real problem they have are the margin pressures and the cost of importing goods to create their products as a result of a lowering AUD.

That being said, I don't know enough about the company overall to make a complete investment decision - have only started looking into them now... but they are definitely not overpriced, given they have $8.5m in cash and substantial inventory (which they have mentioned they'll be using, so I'm assuming minimal obsolescence)

EDIT:
So_Cynical - this is from the Preliminary final report around the issue of powder contamination


> _The recent milk powder contamination incident in New Zealand will have a negative impact for some
> of our customers, leading to a reduction in infant formula sales. The Directors are uncertain as to the
> extent of this impact on supply of ingredients by Clover at this stage. They are closely monitoring the
> situation and will inform the market as more information emerges._


----------



## So_Cynical (30 September 2013)

The Motley fool has done a write up on Clover.



> Is now the time to buy Clover Corporation?
> By Claude Walker - September 30, 2013
> 
> Clover Corporation (ASX: CLV) owns technology that turns fish oil into a powder. Fish oil is a well-known source of omega-3, which plays a crucial role in brain function. It is normally contained in breast milk. Therefore, omega-3 is included in baby formula, and that’s where Clover comes in.
> ...




http://www.fool.com.au/2013/09/30/is-now-the-time-to-buy-clover-corporation/

I don't often agree with fool.com but, yes since i bought into CLV again 2 weeks ago i would have to agree that now is the time to buy Clover Corporation...personal opinion only of course.


----------



## jdenhaan (18 November 2013)

So_Cynical, you seem like a fan of this stock. I have to admit I like it too. Its 5 year chart is great and it seems like a solid business from a value point of view.

At the moment though it seems to be in a bit of a downswing and all indicators (including the MA200) are firmly pointing south. For now, I'm holding on to my cash. What do you reckon would be a good buy in point? Plotting trendlines gives me possible lows anywhere from 0.36 to  0.47.


----------



## jdenhaan (19 November 2013)

Stock seems to be in a correction from being overbought. Buy in at 0.42?


----------



## So_Cynical (19 November 2013)

jdenhaan said:


> View attachment 55397
> 
> 
> Stock seems to be in a correction from being overbought. Buy in at 0.42?




For what its worth (My Opinion) i don't think the stock was that over bought, i though the stock was being re rated at the last big SP run up based on the business, the focus on Omega 3 micro encapsulation and increased sales, and moving on from taking the loss on the Freedom foods adventure (2008 > 2012) 

I would argue that the long term chart clearly shows a slow and somewhat choppy continual re rating of the SP in an upward direction...the current dip is an opportunity that i have decided to grab and thus have built an over weight position...time will tell all of course.


----------



## jdenhaan (20 November 2013)

So_Cynical said:


> For what its worth (My Opinion) i don't think the stock was that over bought, i though the stock was being re rated at the last big SP run up based on the business, the focus on Omega 3 micro encapsulation and increased sales, and moving on from taking the loss on the Freedom foods adventure (2008 > 2012)
> 
> I would argue that the long term chart clearly shows a slow and somewhat choppy continual re rating of the SP in an upward direction...the current dip is an opportunity that i have decided to grab and thus have built an over weight position...time will tell all of course.



Any idea why they're currently dipping?

I might put in an order at 0.45. This company has some solid fundamentals and from the looks of it it doesn't look like it will disappoint anytime soon.


----------



## jdenhaan (29 November 2013)

Announcement

Looks like the milk powder contamination thing has lowered sales by 20% in Q1 of FY2014. Longer term prospects are largely unaffected though.

This thing might tank a bit today and even if it doesn't and this has news already been priced in, CLV is a good buy I reckon. Watching this one closely today.


----------



## So_Cynical (29 November 2013)

jdenhaan said:


> Any idea why they're currently dipping?
> 
> I might put in an order at 0.45. This company has some solid fundamentals and from the looks of it it doesn't look like it will disappoint anytime soon.




0.45 your dreaming....those days are gone.

Its ok to have a low ball punt as long as your ok to let a good thing go, for me, CLV is too much of a good thing to be to low ball..recent price action has held well at the 0.49 level, either way i wont be surprised to see the SP dip to 0.45 or pop to 0.55.

The market is a 2 edged sword.


----------



## Ves (29 November 2013)

CLV is on my radar... actually it has been for quite a while,  but I haven't really decided on it 100% yet.  It's definitely not over-priced at the moment,  but probably not any where near being a bargain of a life-time either.

Their R & D spend is impressive...   completely funded out of OCF and growing over time.   The Chinese market is probably going to be a future tailwind too,   they have a pretty solid balance sheet and business model to take advantage of it.   

I will keep digging....   I'll eventually make up my mind,  I'm usually pretty slow with these sorts of companies.


----------



## So_Cynical (25 March 2014)

So_Cynical said:


> (21st-September-2013) In yesterday for Clover trade #3 ~ first proper trade with the IB account to..@ 0.505





In Again with the IB account @ 0.51, HY accounts out tomorrow resulting in some selling action so i decided to take a small punt on the results being ok.


----------



## robusta (25 March 2014)

Must admit to be taking a keen interest in the results as well. Noticed in the annual report consolidation iby their customers resulted in some pricing pressures. Will be looking at the margins to see what pricing power they have through these difficult trading conditions.


----------



## piggybank (26 March 2014)

Hi So_Cynical & robusta,

So what did you think of the result(s)?

​
The rest of the presentation can be read here:- http://stocknessmonster.com/news-item?S=CLV&E=ASX&N=790011

The market doesn't seen too excited by it so far. Presently it is down half a cent on higher volume tan normal. On Monday it broke through (downwards) the 250EMA and has continued to.

Regards
PM


----------



## So_Cynical (26 March 2014)

piggybank said:


> Hi So_Cynical & robusta,
> 
> So what did you think of the result(s)?
> 
> View attachment 57362​




The screen shot you posted looks great  because its historical and doesn't include this first HY 2013/14, the HY that wasn't as good due to the contamination issue...for the results overall, its a little on the down side of what i was expecting and as per usual some holders decided to sell regardless.

When i saw the results this morning i had a feeling the SP could see 0.46 ~ i will double up tomorrow.


----------



## Ves (27 March 2014)

Following on from my last post:   I still really like the low capital business model and the accounts look reasonably clean (no capitalisation of R & D etc). But, I have some further reservations about this.

The original forecast after the Fonterra contamination scare (and recall that found no defects) was that sales would decline by 20% in the first half as the market re-adjusts.   They later qualified this by saying that there may still be further time lag as confidence returns to the market.  The actual decline was 26%.

Latest forecast is that full year revenue could drop by as much as 20-40%.  This indicates that they are now far less confident than they were before the Fonterra recall was shown to be just a scare.  I read this as them saying that they now think that there will be no recovery in consumer confidence in their markets this half.    What are the implications of this?   2015 FY now proves to be fairly pivotal,    especially when the Chinese market for infant milk powder solutions is restructuring to accommodate and encourage domestic production.

Gross margin was in decline before the recall, but it has at least stabilised this report,  it is still well shy of the 40% it was.

They are trying to diversify the geographic distribution of their revenue (early days yet) and develop new revenue sources  (R & D spend will start to ramp up in the next two or three years).

Whilst the price is starting to look more attractive,   the risks that are lying beneath the surface are becoming more obvious  (the market obviously agrees) and as a long-term holder there are a lot of unanswered questions that you would need to be comfortable with.

Not sure of the impact of the imminent retirement of their founder Dr Ian Brown is either.

These situations make for good buying…. But only if you are reasonably accurate in the long-term success of the company.


----------



## systematic (28 July 2014)

Doing a forum search on CLV, So Cynical you have been the main follower.  Interested in anyone's thoughts (for fun).

I've been looking at some different stuff (as I'm want to do for entertainment) compared to my usual areas of focus, and CLV came up for me as the pick of the bunch.

I'll put in a theoretical buy on Monday's open.


----------



## So_Cynical (28 July 2014)

I bought some in mid May @ 0.41 in to early as per usual, The current low of around 0.36 looks to be a hell of an opportunity to me, i probably should sell something else to free up some money and take advantage.

The business is as good as it ever was its just the continuing sales slow down from the contamination scare...nothing is broken.


----------



## Junior (31 July 2014)

SP has bounced pretty hard off 35 cents.  Currently back up at 42 cents.

So_Cynical, Ves, what are your takes on the situation?  Have there been any positive news articles or research in the past week or two which indicate any recovery in sales?


----------



## skc (31 July 2014)

Junior said:


> SP has bounced pretty hard off 35 cents.  Currently back up at 42 cents.
> 
> So_Cynical, Ves, what are your takes on the situation?  Have there been any positive news articles or research in the past week or two which indicate any recovery in sales?




I wonder if the Fonterra announcement of reduced farm gate milk price has anything to do with it...


----------



## Ves (31 July 2014)

It's a fairly illiquid small-cap so it doesn't take much to move the price.  From what I can tell there hasn't been any news (and certainly not much volume),  and my impression is that it is just the market doing its thing, waiting patiently for the 2014 results to be released.

Personally I am not really interested until there is more clarity on the sales recovery; is it structural or is it still related to poor consumer confidence re the contamination scare?  I don't think there is any way of knowing at this point.


----------



## So_Cynical (31 July 2014)

Junior said:


> SP has bounced pretty hard off 35 cents.  Currently back up at 42 cents.
> 
> So_Cynical, Ves, what are your takes on the situation?  Have there been any positive news articles or research in the past week or two which indicate any recovery in sales?




I think the 35 cent dip was just one of those things, like Ves said "just the market doing its thing" those little nano opportunity's come along in different stocks quite regularly, banged up a chart  - i reckon the no news range will prevail although 2 dip/double bottoms are also quite a regular manifestation of the market just doing its thing.
~


----------



## Junior (24 September 2014)

2014 results are out, around $1mill net profit down from $6mill previous year.

Those who've been following the company for longer than me, what do you make of this report?  A lot of talk of managing existing clients and investing in growth and R&D, but I guess we won't know the success of this until we see a legit recovery in sales and margin.


----------



## skc (24 September 2014)

Junior said:


> 2014 results are out, around $1mill net profit down from $6mill previous year.
> 
> Those who've been following the company for longer than me, what do you make of this report?  A lot of talk of managing existing clients and investing in growth and R&D, but I guess we won't know the success of this until we see a legit recovery in sales and margin.




I sold my small position today on open, on the back of this report. It's not really out of expectation that their NPAT will be low... a 40% fall in revenue will cause >40% fall in profits.

However, it's missing 2 things in my view. A lack of evidence showing the supposedly "regaining market share" by their customers in May/Jun, and a lack of outlook statement. I understand that the NZ recall incdient was unfortunate and not really something within the control of management. But that happened over 12 months ago, yet CLV has somehow not yet recovered from it. I find it difficult to assess the company's prospect on the underlying basis. So with the market looking a bit weak I am happy to sit on the sideline and wait for a clear sign of recovery. I am willing to back my judgement that, my re-entry (when that time comes) will be superior than my exit price.

For those who have much longer investment timeframe, better patience and less problems holding onto a paper loss, it's a potential turnaround buy if indeed the impact of the contamination incident just naturally peters out. It's showed what profit it can earn when it's firing on all cylinders. I just didn't get the info I need to support such conviction.


----------



## So_Cynical (24 September 2014)

skc said:


> For those who have much longer investment timeframe, better patience and less problems holding onto a paper loss, it's a potential turnaround buy if indeed the impact of the contamination incident just naturally peters out. It's showed what profit it can earn when it's firing on all cylinders.






So_Cynical said:


> I think the 35 cent dip was just one of those things, like Ves said "just the market doing its thing" those little nano opportunity's come along in different stocks quite regularly, banged up a chart  - i reckon the no news range will prevail although *2 dip/double bottoms are also quite a regular manifestation of the market just doing its thing.*
> ~




And today we have news and my half predicted double bottom, currently trading at 35c ~ i have insufficient funds in my long term account so will not be adding to my somewhat significant position.


----------



## skc (24 September 2014)

So_Cynical said:


> And today we have news and my half predicted double bottom, currently trading at 35c ~ i have insufficient funds in my long term account so will not be adding to my somewhat significant position.




Closed on the low of 34c. It's dipping it's toe into the price band between 26-35c where it spent much of 2011. 

It's a thinly traded stock so it doesn't take much to move it one way or the other. It could easily drift to the bottom, or just as easily bounce off the top of this band.


----------



## robusta (9 April 2015)

Looking for a reason why CLV is near 52week lows. I know sales have been slow to come back in China but...?

Could be worth a look.


----------



## So_Cynical (9 April 2015)

robusta said:


> Looking for a reason why CLV is near 52week lows. I know sales have been slow to come back in China but...?
> 
> Could be worth a look.




Looks crazy cheap now, sellers/haters prevailing, i imagine that the low dollar would help Clover, i will take another small bite soon, just a little average down as i already have too much in this.


----------



## skc (9 April 2015)

skc said:


> However, it's missing 2 things in my view. A lack of evidence showing the supposedly "regaining market share" by their customers in May/Jun, and a lack of outlook statement. I understand that the NZ recall incdient was unfortunate and not really something within the control of management. But that happened over 12 months ago, yet CLV has somehow not yet recovered from it. I find it difficult to assess the company's prospect on the underlying basis. So with the market looking a bit weak I am happy to sit on the sideline and wait for a clear sign of recovery. I am willing to back my judgement that, my re-entry (when that time comes) will be superior than my exit price.




They seem to keep blaming the Aug 2013 incident for customers not returning... now that's 1.5 years ago. Their revenue has grown in the report, but the revenue is starting to recover ($16.1m compared to $14.9m in the period just after the incident). There's little seasonality in infant formula... if they could publish some monthly run rate figures, then a potential investor could know asap that the sales downtrend is finally reversed.

Of some concerned is the rise in COGS. Gross margin dropped from 34% last HY to 22.9% in the latest HY. Management citing raw material cost increases, falling $AUD, cmopetitor pricing pressure and product mix as key reasons. The question is, are those high margins of the past returning? The fall in margin does not appear to be cyclical.

So let's say they recover in sales but not in margin... sales of $40m in another year with 23% gross margin = $9.2m gross profit... take away SG&A of $6m and pay 30% tax, you are left with $2.24m NPAT. Compare that with the current market cap of $27.3m...  hmmm.



So_Cynical said:


> Looks crazy cheap now, sellers/haters prevailing, i imagine that the low dollar would help Clover, i will take another small bite soon, just a little average down as i already have too much in this.




CLV is 44% owned by SOL and Farjoy (associated with the Soul Patt mob) and you know they are not the ones selling. There are probably some micro cap funds with position in this that they are trying to liquidate. As is typical with these kind of small stocks, it's all good to keep buying and build a position when it's rising (booking rising NTA along the way), it's quite a difficult thing to do when things don't work out and you want to sell! 

Since 20 March market update, the volume has only been ~3.6m (or <$1m worth of stock). So the quesiton is whether this seller has finished his line or not.


----------



## Ves (10 April 2015)

Hmmm.... trading at around NTA now.    Problem is it's starting to bleed cash and NTA is going backwards.  There's also the fact that there isn't really any "hard assets"  (which alternatively is great when sales are flying) to bother too much with an "asset play."

Agree with skc,  and I think I said it previously,   the gross margin contraction started off as a worry and a sign of increasing competitiveness in their markets,  now it's almost at a point,  where you can start seriously revising any long-term investment thesis compared to 18-24 months ago.

If it can earn above cost of capital going forward it's pretty cheap,   but you'd have to be an expert in this niche to figure that out (and probably ride a bit of luck),  and unfortunately I'm not.

It's hard to fund further R & D when you're not making much cash.   Capital squeeze on the horizon?   Wouldn't be surprised if they have to tap the markets at some point if it doesn't improve.


----------



## So_Cynical (13 May 2016)

So_Cynical said:


> (9th-April-2015) Looks crazy cheap now, sellers/haters prevailing, i imagine that the low dollar would help Clover, i will take another small bite soon, just a little average down as i already have too much in this.




I wish i did take that extra bite, would taste so sweet now as opposed to the bitterness of regret.



Ves said:


> (10th-April-2015 ) Hmmm.... trading at around NTA now.    Problem is it's starting to bleed cash and NTA is going backwards.
> 
> Agree with skc,  and I think I said it previously,   the gross margin contraction started off as a worry and a sign of increasing competitiveness in their markets,  now it's almost at a point,  where you can start seriously revising any long-term investment thesis compared to 18-24 months ago.




13 Months later and Clover is closing in on a new all time high, not there yet but an amazing trend reversal, i missed the last bottom but did get a small parcel two years ago this week, hold 3 parcels.


 (28/08/2009) 7000 CLV @ 0.19
 (31/08/2011) 2700 CLV @ 0.285
 (16/05/2014) 5000 CLV @ 0.415

Interesting to look back (7 year chart below) total net dividend return on the 2009 parcel is 10.25 CPS ~ 7.7% PA, beat having the money in the bank, open trade profit on the 3 parcels of close to 90% with an average price of 0.29.

Im thinking that the SP could really take off on good results reporting considering the SP rise of the last 12 months hasn't needed much good news, some actually really good news may take the price over the top. 
~


----------



## greggles (17 April 2018)

Clover Corporation had a huge leg up in March after releasing their Half Year Financial Report and Investor Presentation. Since then it has been going from strength to strength.

CLV reported a Net Profit after Tax of $3.2 million for the half year ended 31 January 2018 (2017: $1.0 million) an increase of 209%. Sales revenue increased 60% to $31.0 million (2017: $19.4 million).

The company produces infant formula and other health foods and has made great inroads into the Chinese market. It is also expanding into other international markets, particularly the USA, Europe and Asia.


----------



## So_Cynical (18 April 2018)

Traded above $1 yesterday for the first time ever - i have been in this stock for almost 9 years and at last the big leg up, patience and belief, my average price is 23c so sitting pretty now..


----------



## greggles (18 April 2018)

So_Cynical said:


> Traded above $1 yesterday for the first time ever - i have been in this stock for almost 9 years and at last the big leg up, patience and belief, my average price is 23c so sitting pretty now..



Well picked. It's up another 8% today. Lots of buyers and not a lot of sellers. CLV appears to be the very definition of a quality growth stock.


----------



## galumay (18 April 2018)

Well done SC, I have a mate on twitter that has been posting about CLV, I am sorry I didnt pay any attention now!


----------



## So_Cynical (18 April 2018)

greggles said:


> CLV appears to be the very definition of a quality growth stock.




There were many doubters over the years, it hasn't been a linear journey for the business or the share price, like so many success story's its a matter of discovering potential and having patience, and rewarding good responsible management by simply sticking with them..


----------



## kid hustlr (30 April 2018)

Real shame for me this one.

I was very nervy on the market prospects (as well as busy with life) so passed up the opportunity to buy @ $1.

This bias then stood in my way when looking at this chart each day. A good lesson here.

One thing I'd like the duckman to chime in on if he's around.

Typically I don't like volume - to me volume without range is a worrying sign so when looking at this on the weekend Friday's tight bar on volume worried me. It proved to buying based on today's action however I find it's often sellers doing their thing - any thoughts?


----------



## galumay (1 May 2018)

So_Cynical said:


> like so many success story's its a matter of discovering potential and having patience, and rewarding good responsible management by simply sticking with them..




So true mate, its what I call 'high conviction' investments. Its something I have definitely got better at with experience, shutting out the noise, ignoring the price action, take opportunities to accumulate and maintain patience.


----------



## HelloU (1 May 2018)

i often just guess.......if u like this then cast an eye to synlait (clv is a supplier of little black things to them)


----------



## systematic (1 May 2018)

Well done SC (wish my theoretical buy on open wasn't theoretical!)


----------



## greggles (8 May 2018)

So_Cynical said:


> There were many doubters over the years, it hasn't been a linear journey for the business or the share price, like so many success story's its a matter of discovering potential and having patience, and rewarding good responsible management by simply sticking with them..




And Clover Corporation continues kicking goals.


----------



## HelloU (11 February 2019)

do they sell little black things to bal now?


----------



## So_Cynical (20 September 2019)

All time high today $2.69 ~ i figured the price would pop on the dividend announcement and record 
revenue and profit, in a low growth world growth stocks are new new big thing, cept not so new.


----------



## So_Cynical (28 September 2019)

Above $3 today - new all time high, SOL did some selling earlier in the week, probably for the first time ever.


----------



## Trav. (9 January 2020)

CLV is another trade of mine and currently doing ok. entered 2/01

a couple of big swings over the last few days and hopefully this settles down a bit
Average / Low volume
Weekly and daily trend up
Entry on pivot point 
I have resistance drawn @ 2.80 so if we can get through that area I will be a happy camper.


----------



## Dona Ferentes (11 January 2020)

the Sept 2019 profit announcement, with sales up 21%, NPAT up 33%, (always a good set of jaws), plus a dividend and manageable net debt of $5.2mill  brought some interesting commentary:
- _Sales of new products fuel growth and profitability 
- Clover’s focus on expanding sales into new territories delivers growth
*Looking forward* 
Clover continues to have a strong pipeline of opportunities to grow its market share in IF and to diversify into new adjacent markets. Whilst legislation in Europe to increase DHA in IF in 2020 and likely similar changes in China in future years provide good prospects for growth, we are seeing pressure on margins due to increased competition._

Since then, there has been a remarkable shift in nutritional posturing ... with plant based protein gaining momentum and taking market share from animal protein, for a variety of reasons.

Next cab off the rank is likely to be marine sourced protein substitution. The role of aquaculture has grown in response to demand, as supply from pelagic sources becomes more expensive and harder to find. (a third of the world's oceans are over-fished and seafood consumption is at record levels). And now, food technologists are looking at the 200+ fish and other seafood types (animal protein has 30 sources/ tastes at max), with the aim to launch new frozen lines, including plant-based crab, fish burgers and white fish.

Meantime ....Omega-3 fatty acid production levels, essential for human health, have fallen in farmed fish since over-fishing concerns spawned a switch from feed rich in oily fish to soy and other alternatives. In one response, Johnathan Napier and his team at Britain's Rothamsted Research, an agricultural science centre, have genetically modified plants whose seeds produce the two key acids that make up omega-3. "If we can use a land-based source of fish oils as a way of augmenting or adding to the stuff from the oceans, then we can relieve the pressure on the oceans," he says, adding that the result would also be far more affordable..
https://www.afr.com/companies/agric...comes-the-vegan-tuna-sandwich-20191122-p53d7y

How this impacts on Clover's core business remains to be seen.


----------



## Dona Ferentes (27 March 2020)

Like everything, CLV has been belted. The steady build from late 2017 around 50c to over $3 saw a rapid drop to sub $1.40 a few days ago, significantly losing another 20% after bringing 1H2020 results out.

- net revenue up 9.8%
- net profit up 3.4%
- spending up on research, marketing, business devt across globe
- prudent cash preservation .... no dividend
- Covid-19 affecting market conditions but not results or forward orders (so far)

China looms as a worry; min DHA levels not yet legislated, so inventories stayed low. Also, they want to encourage local brands (the usual story). Cross border e-commerce continues.


> “Our employees in China were not allowed to leave their house for 60 days, other than for medical and food supplies. They went back to work Monday”
> _P Davey, CEO, Clover Corporation Ltd_


----------



## Dona Ferentes (20 May 2020)

> Following the first half results, Clover Corporation has experienced strong demand from customers globally, with an increase in forecast demand coming in the fourth quarter from infant formula manufacturers, which the company believes is primarily driven by the market’s reaction to COVID-19. It is believed consumers are buying additional products which has depleted the pipeline fill into distribution warehouses and retail outlets. This is likely to have been exacerbated by company and country isolation activities.



also getting a one-off benefit from currency movements.


> Clover believes that much of the increased demand reflects China re-filling a depleted pipeline post the COVID-19 impact, as well as other countries experiencing higher demand as end consumers stockpile product during isolation. It is too early to state the full impact of the above market movements as the current forecast-to-order placement is very fluid. The situation driven by COVID19, the depreciation of the Australian dollar and high existing Clover inventories are mostly one-off events, and we expect demand patterns will return to a more normalized pattern in the next financial year.





> Previously, the company had indicated that performance in the second half of FY20 would be similar to the results in the second half of FY19 (which is seasonally stronger than the first half). The Board now expects a stronger second half FY20 performance, assuming forecast demand results in fulfilled orders and the global situation remains in the current state.



The Board will consider reinstating company dividends at the end of the financial year in line with results


----------



## Dona Ferentes (1 October 2020)

expectations seemed to be built in for a good Annual Report, released 18/9, but it was not the case. Covid hasn't helped.
Negatively, the new NZ plant taking longer to get operating; and finding it hard to build volumes with customers. Any reaching into new markets has been held back by travel restrictions. New products put on hold.

on the plus side, home sales lifted with stocking of pantries, but this may be a one-off. 

will pay a 2.5c dividend.


----------



## Dona Ferentes (13 October 2020)

Soul Patts SOL has been selling down ... now just above 20% holding. 

Weakness in Clover performance to continue, I suspect.


----------



## So_Cynical (13 October 2020)

Dona Ferentes said:


> Weakness in Clover performance to continue, I suspect.



Revenue and profit chart from the new ASX website - looks very healthy all things, China and COVID 
considered, over 4 years revenue has doubled and profit quadrupled, share price quadrupled as well.
~


----------



## Dona Ferentes (14 October 2020)

Healthy growth, though RoE stalled.






( HOLD _a few, and still above entry point. Is it a Covid induced hiccup; do I move on or wait for renewed growth_?)


----------



## Dona Ferentes (21 October 2020)

not so fast. Tripping over untied shoelaces; not looking where they're going

_Following the release of full year 2020 results, Clover Corporation has experienced reduced demand with  lower than originally forecast orders coming in the first quarter from infant formula manufacturers.  __The Company believes the reduction is primarily driven by the *market's recalibration *following a significant  increase in fourth quarter FY2020 orders, as indicated in the full year 2020 results and commentary. 

Clover indicated on 20 May 2020 that, “the majority of the higher than usual inventory position will be worked  through in the second half of the financial year and therefore provided a one‐off benefit.” “Looking forward  Clover believes that much of the increased demand reflects China re‐filling a depleted pipeline post the COVID19 impact, as well as other countries experiencing higher demand as end consumers stockpile product during  isolation. It is too early to state the full impact of the above market movements as the current forecast‐toorder placement is very fluid.”  _

_On 18 September 2020, the company stated that “Uncertainty from COVID‐19 has the potential to impact both  positively and negatively. The higher retail demand for infant formula in Q3 & Q4 FY20 may have been a “one  off”, with possibly reduced demand in 1H FY21. Clover continues to engage with its customers to maintain its  market position with orders for first half FY2021 at this point expected to be consistent with those of first half  FY2020.” _

_As a consequence of this continuing uncertainty, Clover now expects revenue for the first half of FY2021 to be  *down 15% to 25%* on the first half FY2020_.

--- and so went the SP; down 15% (and likely to languish there)


----------



## Trav. (21 October 2020)

Ouch....that definitely doesn't look good.

It is amazing the the SP drop reflected the upper end of the forecast.


----------



## Dona Ferentes (23 November 2020)

Trav. said:


> Ouch....that definitely doesn't look good.
> 
> It is amazing the the SP drop reflected the upper end of the forecast.



my my.... is there a cautionary tale here, or should sloppiness and lack of attention to detail become the norm?

I have held some CLV in my 'boring' basket for a year or more, entry price $2.00. Held it up and down, then when the downgrade came, decided to offload... at 1.75. Duly did so, but didn't look and put on a BUY not a SELL. So I decided to pick up the ff dividend (went ex - on 27/10) and now I've now held my double helping  for a while. Will wait for the 45 days before deciding what to do.


----------



## peter2 (23 November 2020)

Was looking at this chart also. The recent break-out of 1.85 triggered my momentum strategy to issue an alert. A good looking reversal opportunity here. 

I read the reason for the price selloff in Oct. The reason, China destocking after Covid buy up seems a bit flimsy. Seems like they didn't know. The good news is that there's nothing amiss with the business and the market overreacted. 

Hold that double possie, bank the divs and look forward to getting back into the green soon.


----------



## So_Cynical (8 March 2021)

So_Cynical said:


> (Sept 2019) Above $3 today - new all time high, SOL did some selling earlier in the week, probably for the first time ever.



And now SOL buying a few, Perpetual buying last week, some funds seeing value at the current prices.


----------



## So_Cynical (30 December 2022)

Trading at around the 5 year low, the Annual report commentary was upbeat, the spray plant in NZ should be running at capacity this year, world markets open again, lots of baby's, Clover has cash and operates at a health profit and pays fully franked dividends...all good.


----------



## Dona Ferentes (Thursday at 7:13 PM)

So_Cynical said:


> And now SOL buying a few, Perpetual buying last week, some funds seeing value at the current prices.



SOL , a long time advocate/ investor in Clover, has dropped its holding to below 20% recently.

(_not holding,  off radar_)


----------



## divs4ever (Thursday at 7:49 PM)

i hold CLV ( theoretical  av. just above  24.5 cents  , but 'free-carried ' )

was buying in 2014 and 2015 ( lowest buy 17 cents ) and reducing  in  late 2015, and again in 2018  ( highest sale $1.55 )

 is currently sitting in 'the bottom drawer '


CLVCLOVER CORPORATION ORDINARY
Change








Balance DateDividend TypeCents per shareCcyFranked %Ex-Dividend DateBooks Close DatePay Date31/07/2022Final1.000AUD100.0025/10/202226/10/202222/11/202231/01/2022Interim0.500AUD100.0006/04/202207/04/202228/04/202231/07/2021Final0.500AUD100.0025/10/202126/10/202116/11/202131/01/2021Interim0.500AUD100.0007/04/202108/04/202129/04/202131/07/2020Final2.500AUD100.0027/10/202028/10/202018/11/202031/07/2019Final1.750AUD100.0029/10/201930/10/201920/11/201931/01/2019Interim0.625AUD100.0008/04/201909/04/201930/04/201931/07/2018Final1.250AUD100.0029/10/201830/10/201820/11/201831/01/2018Interim0.500AUD100.0009/04/201810/04/201801/05/2018

 the div. yield is nothing special  ( most years )  but i have no investment cash at risk either

 until it drops close to 30 cents again  , i probably won't be adding extras


----------

