Australian (ASX) Stock Market Forum

SHV - Select Harvests

Or maybe not. This setup is usually very positive and market sentiment looked pretty good yesterday.

Cheers
Country Lad

View attachment 54005

And today to...

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ASX All Ords 2013 best performers December 30, 2013

The best stock performers across the ASX All Ordinaries index have been dominated by a health food company, telco, dairy producer, vet clinic and wealth manager [at close of trade Friday 27 December 2013].

Claiming the top spot is almond orchard operator and nut distributor Select Harvests Limited (ASX:SHV) which has surged more than 270 per cent this year and added another 2 per cent on Friday to end the week at $5.09. The company’s stock has this year been boosted by higher almond prices, a stronger crop and lower Australian dollar - even attracting takeover speculation amid a series of Mergers and Aquisitions [M&A] in the agribusiness sector.

Scoring the silver medal is mobile telecommunications provider Hutchison Telecommunications Limited (ASX:HTA) jumping more than 220 per cent followed by takeover target Warrnambool Cheese and Butter Factory Co. (ASX:WCB) soaring 157 per cent in 2013.

Veterinary services provider Greencross Limited (ASX:GXL) has had a stellar run on the back of acquisitions and wealth manager BT Investment Management Limited (ASX:BTT) has been boosted by equity gains, with both stocks climbing more than 140 per cent over the year.

More notable stock performers rising above 100 per cent in 2013 include Mayne Pharma Group Limited (ASX:MYX), Bega Cheese Limited (ASX:BGA), Tassal Group Limited (ASX:TGR) iProperty Group Limited (ASX:IPP) and Slater & Gordon Limited (ASX:SGH).

Select Harvests reported a net profit of $2.87 million in the 2013 financial year.
 
Interesting story from the ABC rural about Australian ALMONDS;). This will have a P&F chart at the bottom of SHV

The link - http://www.abc.net.au/news/2013-12-06/foreign-investment-horticulture/5139990

The next link is about SHV's Asia Investor Briefing Presentation that took place on Thursday 20th January.

The link - http://stocknessmonster.com/news-item?S=SHV&E=ASX&N=401092

Australian almonds attracting and appealing to foreign investors.

Tim Orr was always destined to grow almonds

It's an industry that's practically in his blood after growing up in northern California, home to 80 per cent of the world's almonds. But he never imaged it would be Australia where he would ultimately enter the family trade. Mr Orr shifted to Australia 20 years ago for a previous career. It was seven years ago that he finally answered his calling and, along with three other investors, purchased a 1,600-hectare wheat property at Cullulleraine in far north-west Victoria. They have since converted the property into an orchard with almost 500 hectares of almond trees. While his family might find it amusing he had to shift to the other side of the globe to grow almonds, they understand the threat Australia poses. "They don't like the competition" Mr Orr says.

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PHOTO: Tim Orr, an almond grower at Cullulleraine, in north-west Victoria, says foreign investment in Australian almond processing has boosted competition - Brett Worthington

Three of the four owners of Lake Cullulleraine Almonds were born outside Australia. But they are far from alone in their investment in Australian horticulture. The demise of Timbercorp during the heart of the global financial crisis provided the perfect timing for the Singaporean-based food giant Olam to enter Australia's almond industry. Olam purchased all of Timbercorp's almost 12,000 hectares of almond groves and the company's water entitlements. At the time, Olam's purchase equated to about 45 per cent of Australia's planted acreage.

Fast-forward to today and the industry has overcome years of drought to replace Spain as the world's second largest almond producer. Mr Orr expects the sector will continue to grow with further investment in almond processing. "The one thing that's lacking in Australia is the processing capability" he said. "Most of the processors this year were still hulling into August and some of them even into September and early October". "There's people looking all the time in it. I've had quite a few people contact me just with the issues of doing business with almonds here. The almond market could certainly use another huller or two the size of what Olam has put up and the competition would be good" said Tim Orr, Lake Cullulleraine Almonds -

Olam opened the southern hemisphere's largest almond processing plant at Carwarp, south of Mildura, in March. The $60 million plant has the capacity to be the second largest processor in the world, processing 40,000 metric tonne of almond kernels within 25 weeks. The company's Australian executive general manager Damien Houlahan says building the processing plant wouldn't be possible without foreign investment.

"As a lot of the orchards were coming into full maturity and therefore producing a lot more nuts...there was a deficit capacity in almond hulling and shelling and processing in the (Sunraysia) region" he said. "So for us, it was a very logical step to be the ones that made that investment in the additional capacity that was required". The $128 million Timbercorp asset sale angered some of the company's investors, who claim the company's 40,000 megalitres of water rights was worth more than $100 million alone. Olam announced in November it had struck a $200 cash deal with international investor Adveq to sell 12,000 hectares of orchards. Olam will lease back the orchards for 18 years, while still retaining ownership of the processing plant and water rights. The company expects to earn $45 million in post-tax capital gain once the deal is finalised.

Mr Orr says "there weren't many Australian companies interested" in purchasing Timbercorp's assets - a sentiment Mr Houlahan agrees with. "Quite simply, the capital bucket is just not enough domestically, so foreign capital allows the investments to be made" he said. It allows the continuing investment being made. "It allows, in my opinion, greater innovation, greater research and development and obviously an overall significant commitment to the industry in which the investments are made and the subsequent substantial employment opportunities".

Mr Orr expects foreign investors will lead the charge at building new processing plants. He sells his almonds to Select Harvest, a publicly-listed almond grower and processor that owns about 4000 hectares of almond orchards south of Mildura. Mr Orr says he welcomes any investment in almond processing. "It created a bit of competition" he said of Olam's processing plant. "Olam certainly will eventually be buying almonds from producers and looking for more processing to go through their plant". Growers in Griffith, in southern New South Wales, truck their almonds almost 500 kilometres to Sunraysia for processing.

Mr Orr says more international enterprises are looking to invest in Australian almonds. "There's people looking all the time in it. I've had quite a few people contact me just with the issues of doing business with almonds here" he said. "The almond market could certainly use another huller or two the size of what Olam has put up and the competition would be good". The growth of almond processing in Sunraysia has prompted UK company Balfour Beatty Investments to look to invest in the region. The company wants to build a multi-million-dollar 35-megawatt power plant at Carwarp, near Olam. The biomass power plant will use almond hulls and husks, grape mark and cereal straw to generate electricity. Former horticulturalist turned Mildura Rural City councillor John Arnold says it's crucial the region encourages foreign investment in projects like electricity generation and almond processing. But he says there needs to be strict guidelines overseeing the investment. Cr Arnold, who opposed US food giant Archer Daniels Midland's attempted GrainCorp takeover, says he supports Olam's investment in Sunraysia.

But he says foreign investors must demonstrate how they will enhance the region's economy and employment before gaining approval. "Investment like (Olam) is very important, particularly to a regional economy," Cr Arnold said. "Not only does it provide the impetus for large-scale production of the products that are produced, but also it increases local employment opportunities". "It's really looking at what are the opportunities, what are the advantages, how will that be advantageous to Australia and advantageous to our communities, because we want people to vibrant and productive. "We want to see opportunity continue on".

Australia's largest solar electricity plant using satellite dishes covered in mirrors at Carwarp, south of Mildura in north-west Victoria

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PHOTO: Australia's largest solar electricity plant using satellite dishes covered in mirrors at Carwarp, south of Mildura in north-west Victoria - Brett Worthington

Sunraysia has also attracted the attention of international investors wanting to harness the region's solar electricity capabilities. Australian-owned Solar System opened a 1.5-megawatt power at Carwarp earlier this year. That plant includes 40 solar dishes that generate enough electricity to power 500 homes. The company is conducting a 12-month trial that it hopes will encourage Commonwealth and state governments to invest in, and expand, the project to install 2,000 solar dishes capable of powering 40,000 homes. "Solar power is very important to a region like Sunraysia, which has got a greater length of sunshine periods than even the Gold Coast" Cr Arnold said. "We need to harness those things and make them happen, but often there's not that finance available from within the Australian economy to do it".

Blooming orchards attracting foreign attention

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PHOTO:
A Select Harvests almond orchard in north-west Victoria in full bloom - Brett Worthington

For Tim Orr, he's just happy the almond industry is picking up from the dark days of the drought. He's optimistic about the industry's future and hopes more international enterprises will invest in Australia - something he says will increase competition and, ultimately, better prices for growers. "It's gone from extreme drought to last year, (which) I believe was probably a very good year for everyone in the almond business" he said. "It's a well suited region, water is available, the climate is compatible with it (and) it's not California - there's no doubt about that".

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Hi piggybank,

That's a lovely chart if you own some shares. Unfortunately not but I think C/L does/or did?

Being the first blossoms of the year, I love almond groves!! Did you note that almond blossoms were 2-3 weeks early last season?

Unfortunately not - its pretty difficult seeing the orchards living in the BIG SMOKE:(

Probably due to Global Warning!! - Thats what Tony A said the other night but then he does love his ALMONDS;):).

Have a good weekend - I know Novak Djokovic won't...

PB
 
Agricultural produce (soft commodity) prices are set by trade in international markets and fluctuate with demand and supply, much like gold and oil. The major influence on soft commodity supply in the near term is the weather. A key weather focus at present is California, home of the world's largest almond production region. The Almond Board of California estimates indicate that California will contribute 83 per cent of world supply this financial year. The California Department of Water Resources has recently reported that last year was that state's driest year on record. More pressing for 2014 is the department's estimate that California's winter snowpack is holding only 20 per cent of its average water content (a guide to river flows). At the same time, the US Department of Agriculture estimates that almost two-thirds of California is in extreme drought.

Australia has recently become the second-largest almond production region in world. According to the Californians, we will contribute 5.9 per cent of world supply this financial year, with third-placed Spain to supply 2.9 per cent. In contrast to California, Murray-Darling Basin Authority data indicates much of Australia's almond-growing region has good water-storage levels. This contemporaneous foreign drought and local flush are among the key factors that produced the agribusiness comeback kid of 2013. Select Harvests, an Australian- listed almond processor and producer, endured a tumultuous three years through to mid-2012. Select suffered a perfect storm of low global almond prices, domestic drought causing below average almond crops, loss of its major client and an unsuccessful project to establish a new almond region in Western Australia. Its share price closed as low as $1.12 in September 2012.

Select's shares recently touched as much as $6 and closed on Tuesday at $5.75. Investors have applauded a refreshed management team's decision to cease its WA expansion; almond prices have climbed sharply as the drought in the US has constrained production there; and mature Australian orchards purchased by Select in recent years have produced excellent crops. Analysts' consensus forecast for fiscal 2014 net profit after tax is $34 million. This is a big turnaround from fiscal 2012 when the company reported an after-tax loss of $4.5 million (affected by asset impairment charges). It is trading at around 10 times consensus forecast fiscal 2014 earnings per share of 58? at the current price. Select remains exposed to the ebbs and flows of California's weather. Another dry year will put substantial pressure on Californian almond yields, global supply and global prices. Whether Select's share price has run its course is a matter of conjecture among analysts. Regardless, Select Harvests has enjoyed a spectacular run and serves as a timely reminder that, while keeping an eye on the sky, Australia's listed agribusiness sector is much more than GrainCorp and Warrnambool Cheese & Butter.

This article can be found by clicking on this link:-
http://newsstore.fairfax.com.au/apps/previewDocument.ac?sy=smh&ss=SMH&docID=AGE140205JD1EF62GR8Q&backTo%3Dhttp%3A%2F%2Fmarkets.business
day.com.au%2Fapps%2Fqt%2Fquote.ac%3Ftype%3Ddelayedquote%26code%3DSHV


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Well the report came out today and it looked alright to me but then I am only a chartist:D It would be nice to hear what the resident Fundamentalists had to say;).

Half Year Ending 31 December 2013 Results Presentation
*1H14Net Profit after Tax (“NPAT”) of $18.4m, compared to Reported 1H13Net Loss after Tax (“NLAT”) of ($19.5m)
*1H14NPAT of $18.4m, compared to Underlying 1H13NPAT of $8.4m(after excluding the after-tax impact of the write-down of the WA Almond Orchard Project from the 1H13result) -up 118%
*1H14 Earnings before Interest & Tax (“EBIT”) of $27.0m, compared to Underlying 1H13 EBIT of $14.4m -up 84%
*1H14Profit before Tax (“PBT”) of $24.8m, compared to 1H13Underlying PBTof $12.0m -up 106%
*Strong operating cashflowof $23.5m, compared to 1H13 cash flow of $11.6m -up 103%
*Gearing (Net Debt to Equity) 45.3%, up from 43.8% (Note -includes $16.3m acquisition)
*1H14Earnings per Share (“EPS”) 32.0 cents per share (“cps”), compared to Underlying 1H13EPS of 14.8 cps -up 116%
*Interim Dividend declared of 11 cps (Record Date: 7 March 2014, Payment Date: 24 April 2014) -up 267%
*SHV is starting to deliver on its potential based on 2014 crop & price estimate

The rest of the report can be read by clicking on this link:- http://stocknessmonster.com/news-item?S=SHV&E=ASX&N=402911

Bloomberg News - Almond Drought Boosts India Sweets to Aussie Farms​
In India, where almonds are used to make sweets and garnish curries, prices have jumped 39 percent in the past year on the National Commodity & Derivatives Exchange and are 83 percent higher than five years ago. The worst California drought on record is forcing Jeff Schmiederer to spend $1.1 million on two new wells for his 1,200-acre almond orchard. Trees got so little water in 2013 that this year’s harvest may drop 25 percent, and the damage may be even worse in 2015. “You’re making next year’s crop this year” Schmiederer, 49, said by telephone from Mendota, in the arid central valley that supplies 81 percent of the world’s almonds. With state water allotments cut to zero, Schmiederer’s wells may only help get irrigation to about 75 percent of normal. “I’m right on the edge of my water needs. Next year could be a disaster”.

Prospects for fewer California almonds are forcing buyers to pay at least $3.10 a pound, 10 percent above the record average in 2006. Prices already were surging since 2009 as demand outside the U.S. almost doubled in a decade to 1.3 billion pounds (590,000 metric tons). The nut, which ancient Romans tossed at newlyweds as a fertility charm, is a snack food used in everything from Hershey Co. (HSY:US)’s Almond Joy candy bar and WhiteWave Foods Co.’s Silk almond milk to Indian chocolates, French pastries and German marzipan.


More of the article can be read by clicking on this link:- http://www.businessweek.com/news/20...osts-india-sweets-to-aussie-farms-commodities

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wondering what's going on now. chart is not looking as good as it was last week

Bought this a long while back. It got really good within a couple months, then a bit better... then just went downhill for a long while, then a long long while I can't bear to look at it.

Last I look it seems reasonable at $7... they harvested all crops from other states and 60% of NSW before today's report so things can't be that bad.
I still hold the stock so yea...
 
Obviously yesterdays update of the SHV Global Market Local Harvest wasn't well received by the market;).
 
They said they couldn't complete harvest if it rained but that's not happening. World supply seems to be short. Price should increase. dollar seems better for them than anytime in the last few years. oh well I'm just going to hold on to all my food stocks
 
Shocked to see the price action on this one.. $4.25 now.

With, in 2016, agriculture stocks all the rage, and nut stocks in particular, how does Select Harvests get to be so unloved?
 
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