CZZ - Capilano Honey

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On the 18th, CZZ will become a member of the All Ordinaries Index.

Quite a large number of changes have been announced today:
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01721408

 

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slowly creeping up - sweet!
I'm back on board: bought the break and intend to accumulate on dips.
First target $21.50; stop on Close Below $19.75 ($20 should hold support)

 

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All the hoopla over Manuka Honey, great as it is for CZZ, has been negative for my local honey supply.
Customers - especially Chinese - have found out that the local Jarrah honey has the same qualities as Manuka. That is nothing new to me as I have been buying Jarrah honey for decades. Not only is it local, but also very limited supply, and you have to know your honest Apiarist. (Knowing the taste, which is very distinctive, helps too )

However, as a result of media picking up on it, the 1kg pot that I could buy late last year for $30, has now gone up to $50. By comparison, the same apiarist sells Redgum, Banksia, even Coastal or Trifurcata varieties for $12/kg.
Not that I blame him. And I still go and get my honey from him.

As an aside: He told me he's planning to expand his business. In spite of having a sound customer base, great reputation and business fundamentals, the Bank keeps quoting ever increasing interest rates because they're carrying too much bad debt and property values in the Swan Valley have dropped.

 

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... back to topic: This looks like a Cup & Handle to me.



If I'm right and it plays the break of $21.58 "by the book", the next leg could get close to $24.
I hold, waiting for the break as a trigger to add more.

 

[Value Collector]

If I'm right and it plays the break of $21.58 "by the book", the next leg could get close to $24.
I hold, waiting for the break as a trigger to add more.

I hold, I am looking forward to the full year numbers in a few months, if the last half results beat the first half, should see some good price action in this stock.

If they can match the first half results at 64cents eps, then full year earnings will be up over 30%.

 

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Today could be "Der Tag" for the expected breakout.
Whether it's Cup & Handle or 4th Attempt, I don't care. As long as the uptrend continues



During the last few days, as it crept up towards resistance, I have added to my position.

 

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I found an interesting research paper comparing the medicinal benefits of various types of honey. The research has been conducted by Dr Charles Dragar of Novost Laboratories in Tasmania, initially focusing on Tasmanian Leatherwood honeys. Luckily, he included WA and Manuka honey in his research, with astounding results for the former. Excerpts have been published in -
http://www.darlingbeeproducts.com/index.php/jarrah-honey
from where the following excerpts have been extracted.
Incidentally: Red Gum honey is still widely available. At the Apiary I mentioned earlier, Windarra, it retails for less than a quarter of Jarrah's price.

Jarrah honey is loaded with antioxidants

Jarrah honey contains high levels of antioxidants that are very beneficial to health.
Dr Dragar tested Jarrah Honey at the NOVOST Pty Ltd laboratories in Tasmania an around high levels of antioxidants in Jarrah honey, a Jarrah Blackbutt honey, and WA Bloodwood honey from the Kimberley.
"Jarrah honey deserves promotion for its high antioxidant activity. It showed a higher level of antioxidant than a reference New Zealand manuka honey and was comparable with Buckwheat in its potency," said Dr Dragar.
"Red Gum, though not as high as Jarrah, had levels of activity similar to Manuka honey."
"Jarrah honey has a much higher phenolic content and colour reading than Red Gum."
"Both Jarrah and Red Gum honeys have a significant proportion of their antioxidant activity attributable to components other than phenolics and this is worthy of further investigation."
To determine their antioxidant properties, Dr Dragar performed three separate assays on each honey and found that Jarrah had consistently high values in all three assays. He performed the Ferric Reducing Antioxidant Power(FRAP), the Oxygen Radial Absorbance Capacity (Orac), and the 2,2-diphenyl-1-picrylhdrazyl (DPPH) assay.
Buckwheat honey is a well known in the USA as an antioxidant honey and marketed as such.
The levels of antioxidants in Jarrah, Jarrah Blackbutt, and WA Bloodwood were a third higher than Manuka MGO 100, and over twice as high as Red Gum, Chestnut, Leatherwood, Dandelion, Chicory, Sulla, Acacia and Clover honeys.
One of the most important steps in preventing heart disease, cancer, and brain wasting diseases such as Parkinson's is to eat plenty of antioxidant rich foods. Antioxidants protect health by preventing and reparing damage done to cells by excessive free radicals.
CSIRO research shows that the risk of cancer and heart disease is reduced in people who consume 5-7 serves of antioxidant-rich foods a day. Antioxidants provide significant protection against age related degenarative diseases.
A 10ml dollop of Jarrah honey in cup of coffee or hot water or on toast will provide one serve of antioxidants with your sweetener.

 

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I take this as a confirmed break of trend.



Holding, accumulating. Target $24-ish? Stop $22 breakdown.

 

[Porper]

... back to topic: This looks like a Cup & Handle to me.

View attachment 66271

If I'm right and it plays the break of $21.58 "by the book", the next leg could get close to $24.
I hold, waiting for the break as a trigger to add more.

Nice looking triangle breakout with measured target around $31.00.

Nice story too although I am no fundamentalist.

We hold CZZ.

 

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Whatever the pattern is/was, $23 no longer looks like resistance. Those 6,000+ on offer were taken in a single swoop, suggesting more upside.



I've stopped trading swingers and switched to accumulating/holding instead. Shall maintain that strategy as long as this trend of higher daily Closing prices lasts.
I hope you're right, Porper: $31, yeah, "I'd like to see that."

 

[Porper]

Whatever the pattern is/was, $23 no longer looks like resistance. Those 6,000+ on offer were taken in a single swoop, suggesting more upside.


I hope you're right, Porper: $31, yeah, "I'd like to see that."

Me too but at the end of the day we can only control how much we are prepared to lose/risk as you know pixel. I am always more concerned with reducing that risk, especially in this market where higher targets have been difficult to achieve. A few stocks are starting to trend nicely though

 

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Me too but at the end of the day we can only control how much we are prepared to lose/risk as you know pixel. I am always more concerned with reducing that risk, especially in this market where higher targets have been difficult to achieve. A few stocks are starting to trend nicely though

Same here, Porper.
Yesterday's Doji Cross below $23 changed the entire picture, and I've begun to reduce my exposure and capital at risk, locking in some healthy profit.

 

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The one-minute chart suggests it could've been a Stop Raid after all.

 

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... and this is how a Stop Raid looks as a daily candle.



I did sell a small number into the Open Auction @ $22.39, still realising a profit; but then missed the buy-back by 1c. Now holding fire till today's Close.

 

[Porper]

... and this is how a Stop Raid looks as a daily candle.

View attachment 66550

I did sell a small number into the Open Auction @ $22.39, still realising a profit; but then missed the buy-back by 1c. Now holding fire till today's Close.

Yes, it's amazing how many times this sort of thing happens. Same thing during breakouts as well. Price gets pushed up through a bullish trigger...then bang the big boys offload. Common theme at the moment. My stop is below today's low for this very reason. That is to avoid getting stopped out during "noise".

 

[qldfrog]

Porper, Pixel,
I understand you are trading CZZ on TA.
I just want you guys to be aware of this business on the "ethical" point of view.
I do not want to get Joe into trouble so use Google,real the label of CZZ products carefully, should not be too hard to find but if you care, you may not be that happy with sides of this business;
it is a shame in my opinion as nothing prevents this company to be both successfull and reasonably "ethical".
Anyway, i do beekeeping which alerted me on CZZ practices and changed my overall feeling on that company.
I also believe that matter is a risk for the shareholders.
I do not own and i do not short them, and still believe real honey is marvelous so enjoy australian pure honey and DYOR

 

[Value Collector]

Porper, Pixel,
I understand you are trading CZZ on TA.
I just want you guys to be aware of this business on the "ethical" point of view.
I do not want to get Joe into trouble so use Google,real the label of CZZ products carefully, should not be too hard to find but if you care, you may not be that happy with sides of this business;
it is a shame in my opinion as nothing prevents this company to be both successfull and reasonably "ethical".
Anyway, i do beekeeping which alerted me on CZZ practices and changed my overall feeling on that company.
I also believe that matter is a risk for the shareholders.
I do not own and i do not short them, and still believe real honey is marvelous so enjoy australian pure honey and DYOR

I am guessing you are referring to the claims that the Capilano Honey Brand use imported honey in their products, If this is what you are talking about let me just say those claims are false and very misleading.

As far as I am aware Capilano is not involved in any business practices that are either illegal, unethical or in anyway immoral.

If you have any concerns, feel free to be open about them here because I would like to discuss them with you, I sense caution in the tone of your post, this might be because Capilano Honey is currently taking legal action against an individual who repeatedly made false claims on face book. Rest assured that the legal action was a Last resort, after he continued publishing false accusations on his page, and repeatedly blocked and deleted posts from anyone that tried to correct his claims, Capilano representatives, bee keepers and I tried to address his claims on his page but all their posts were immediately deleted and they were blocked, this meant they had no option but to take legal action.

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The fact is Capilano Honey (the company), is Australia's largest Honey packer, Packing over 70% of the Honey in Australia, the company have Several Brands of honey that they pack and they also pack under contracts for other companies from time to time (eg Aldi, Coles, woolworths etc)

The various brands The company sell, are packaged to meet different price points, eg the original Capilano Brand is a High quality 100% Pure Australian Honey, and sells for about $14.10 per kilo, But they also Pack and Sell another Brand called Allowie (Totally different packaging, no capilano branding so it can't be confused) this contains some imported content, and is sold at a lower price point of $9.90/ kilo.

There is nothing unethical or immoral about a company packing and branding different products, in fact most companies do it in the food industry do it.

The false claims on face book arise from the fact that the guy kept making statements to mislead people into thinking that capilano branded product was imported, and being falsely labeled as Australian honey, this is not true at all. No imported honey goes into the Capilano Brand, it is only used in the cheaper brands which are labeled that they contain imported honey.

If he would have just had a discussion with capilano and allowed them to correct his false claims, no legal action would have happened.

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You have nothing to fear about discussing capilano provided you aren't going out of your way to spread lies, but feel free to PM me if you have any questions you don't want to bring up in the public forum.

 

[galumay]

I am guessing you are referring to the claims that the Capilano Honey Brand use imported honey in their products, If this is what you are talking about let me just say those claims are false and very misleading.

I guess some confusion could arise in that Capiliano is the overall company, and they have various brands, including one carrying their company name. So its absolutely true to say Capiliano sell imported honey. The relevant distinction is that the honey labelled with the Capiliano brand apparently doesn't contain imported honey.

The new food labelling laws will help with this sort of confusion.

Certainly nothing unethical about selling imported honey either (not that I really think anyone was implying there was) - i have had some wonderful honeys produced overseas, its not as if bees flying round australia somehow make better honey than those flapping around in other countries. The memory of freshly home made thyme honey on Cyprus last year still lingers on my palate!

 

[Value Collector]

I guess some confusion could arise in that Capiliano is the overall company, and they have various brands, including one carrying their company name. So its absolutely true to say Capiliano sell imported honey.

The Allowrie brand doesn't mention Capilano on the labeling at all, and the packaging looks totally different, so their is no risk the consumer will be confused when they pick up a bottle of Allowie and think they are buying Capilano.

The misleading and false statements are what's causing confusion, when a Face book page puts up a post that goes viral, that has capilano brand in the picture( not the allowrie brand) and then it goes on to say that capilano honey contains imported honey, it then goes on to make false claims the honey is poisonous.

Certainly nothing unethical about selling imported honey either (not that I really think anyone was implying there was)

I totally agree, there is nothing wrong with it, they are filling a need in our supermarkets for a lower cost product.

I think the below statement was implying ethical issues, and the original face book post that started all this certainly did. Qldfrog hasn't actually mentioned what the exact issue is he is worried about, but if its the imported allowrie product he is worried about, I think he has probably been mislead also.

I just want you guys to be aware of this business on the "ethical" point of view.

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I also just wanted to point out that companies packing different brands for different price points and quality levels is normal.

Take Patties for example, they pack their name sake patties pies brands, But they also pack "four n twenty brand", "Herbert Adams brand", "Coles Brand" and several other brands including bulk catering brands etc.

Now if they Sold the Patties branded product as 100% Aussie product, But used some New Zealand beef in the product they made under the coles generic brand, they aren't doing anything wrong or misleading anyone. If some one tried to make face book posts saying that patties secretly ripping off consumers by putting imported beef into their products, they are lying, especially if they try and cause hysteria by saying the imported beef is poison.

 

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Thanks guys, for your contributions.

While it's true that my primary approach comes from T/A, I do care about fundamental business aspects as well. That includes a company's behaviour and reputation, albeit not quite to the extent that I include social media and gossip. Were I to apply the strictest ethical yardstick to stocks I own and/or trade, even Coles and Woollies were out of bounds.

As far as Capilano is concerned, my reaction to Allowrie having non-Australian content is simple: I don't buy that product. I don't buy imported "Barramundi" either. But I don't hold it against Kailis, our dominant local Fishing company, that they import prawns from China and elsewhere, then sell them for half the price of WA-caught product. Going by their reputation, I trust they label the origin honestly.