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CGC - Costa Group Holdings

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CGC is one of those stocks you wish you'd gotten into when it listed. What a great performer.

Currently $7.89 and looking primed to crack the $8 mark. Market cap of $2.5 billion.

 
Whoa tough announcement today, stock currently down 30% below $5.

I had this on my watchlist as I thought the chart was shaping up well. Depending on price action today the show might be over for a long time from my perspective.
 
kid hustlr said:
Whoa tough announcement today, stock currently down 30% below $5.

I had this on my watchlist as I thought the chart was shaping up well. Depending on price action today the show might be over for a long time from my perspective.
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It is now sliding down further and rather interesting how loosen the SP was based on. Was the market be too optimistic eliminating the cycle factor for a vegetable grower ?
Motley Fool and others heavily recommended this stock .
@greggles - your comments please ?
Personally do not hold but put a buy order at $4.5 just in case as it did come down to $4.4 at one stage today.
 



10/01/2019 9:10:31 AM Trading update, including earnings guidance



818
 

I think today's reaction may have been a tad overdone and may provide an opportunity for those looking to get on board CGC for the long term. The issue appears to be a lack of demand in certain categories rather than something more serious such as issues with production or growth plans.

I think we'll most likely see some consolidation now until the financial results are released in February. Personally, I can't see CGC going below $4.50 and I think it's seriously worth considering at those levels.
 
Thanks @greggles . I am watching on desktop on the volume and commentaries. 5.4 million shares already transacted by 11.27 AM today compared to only less than 1 million shares transacted previous days.
 
basilio said:
I can't say this surprises me one little bit.. Totally foreseeable IMO.

I chose Costa as one of my stars in the 12 month competition. Yep absolute kiss of death..
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Mate
Enjoy the juicy fruit and they are not poisonous so feel free to lick (sorry for my joke at your wound). More seriously, CGC will revive to have a last laugh on people like me who are on the side line and throwing stones to the apple orchard for sure.
 
basilio said:
I can't say this surprises me one little bit.. Totally foreseeable IMO.

I chose Costa as one of my stars in the 12 month competition. Yep absolute kiss of death..
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Someone stuck a needle in your strawberry!
 
Costa bought up big at the top of the avocado cycle. This year is the first year of a downturn in prices which will probably last another five years as young trees mature.
Have also noticed berries being heavily discounted regularly in the supermarkets.
Unfortunately our wages make exports in labour intensive industries uncompetitive.
 
Have been noticing the cheap berries and avos for a few months now. Bought a punnet of backberrries from Woolies for $2.50 or $3 a few days ago. I have never paid that price for blackberries or have a constant supply of blueberries for approx $2.50.. Need to learn to start tying observations in day to day life to the bigger picture.
 
Lack of demand could be cover for over supply, Costa dont give figures for the different segments and that looks like they want to hide something..
 
Folks
Thought to share with you all that I have now sent an email to Harry Debney CEO and MD, reminding him to follow CGC's values http://costagroup.com.au/Values and advise the market if they should not be panicked.
Let me see if he replies or not. Good CEOs always reply.
Sandeep Biswas of NML, Sam Walsh of Rio (when he was CEO) and few other CEOs have always responded to my queries by email or phone calls. That will be a test for Harry if he walks the talk or not.
Regards
 
Silly isn't it ? Back in December we had the "needles in the strawberries" disaster. It was absolutely clear that strawberry growers and sellers were being crucified.

The market (should have) known that Costa was very big in the berry industry. Hence they had to be hi. But until the official guidance came out it seems few people put two and two together Goes back to the observations about the cheap price of strawberries in the supermarket.

On a separate issue. I wonder if Costa would be exposed to issues of poor payments to oversees farm workers? It is a concern but no one really wants to focus on it.
 
Good morning folks
This morning 10 AM Friday 11 Jan, I tried to reach CEO's office. Harry is on leave returning on Monday. Michael the man designated to take all calls and respond to Shareholders' query today as well as when Harry returns. Obviously the $1.8 Million pay check man can have good sleep when shareholders are losing sleep. For the record, I was not an investor when the market slumped. But put a gamble to buy some last night.
More interesting Goldsman Sachs has published this BUY recommendation today, upgrading their previous ones with an upgrade stating long term story intact and cyclical . Personally I do not want to put money on Goldman's recommendation alone.
This morning the price has slightly better than last night's closing price with a volume of transaction 1.8 million already ???


 
greggles said:
Personally, I can't see CGC going below $4.50 and I think it's seriously worth considering at those levels.
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It looks like the $4.50 level is holding this morning. I wonder if the worst of the selling is over?
 
I bought a small parcel yesterday and sold this morning at $4.64
Its not clear that this is accumulation although I suspect it is.
Supply is being met. I will personally keep an eye on it but think long term
this will flop around.
Very large range large volume days see an inside day follow for a quick $
Was disappointing so left the building!
 
Good morning folks
Today early morning CGC picked up a little far low to sooth balm on those got shot with 39% down but trend is positive. Like many of us, I still think there have been something dodgy things were kept hidden from the market considering only recently they have had a positive market update.
Any way, still waiting to hear back from the company.
Read an article (often it is dodgy too being meant for free issue) which is reproduced.
Also looked into the performance of few similar stocks on ASX.
Disclosure - bought a small parcel @$4.6 and holding it like to be dumped at a better opportunity.
I am emotionally inclined on OLI because it is bloody organic stuff and health junkies (including my son ) and has a great future. DNH yet but watching



Similar stocks on ASX and their performance today 9 AM WST = 12 noon Sydney Time 14 Jan 2019

 
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