Inside of LMF

Jana1 · 1 Inside of LMF Sun Aug 18, 2013 6:36 pm

Jana1

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Since Fonterra-Anchor powder got knocked off in SL, there is a high probability LMF to become as mkt leader along with lakspray..As it made very healthy return this year around 9 rupees which is nearly 100% increase from last year. There is a possibility it could generate healthy return next year. Despite of return its asset based is enhanced by new foreign buyers. As DIST hold over 4 mn JKH, DIST follow JKH rally. As Dist price goes up, LMF NAVP would come nearly 250, if DIST share price can fly above 240.

This could be one of fundamental illiquid gem for value investors- not traders...

stocks hunter · 2 Re: Inside of LMF Mon Aug 19, 2013 7:26 am

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LMF will not get anything from the fonterra issue. All imported milk powder has this issue(WAY powder or DCD). LMF products are imported from AUS.

Future volume may come down drastically. U can ask what has happen to the sales of ANCHOR products from their agents during past couple of weeks.

Now u can't play with sri Lankan consumers as well. This is the high time to consume liquid milk produce from our own milch cows.

By the way LMF may benefitted from AMBEWELLA liquid milk sales. Because they owned sri lanka's best two farms(Ambewella farm + New Zealand farm - Ambewella) by now which produces high quality liquid milk and other milk products.

hettdas · 3 Re: Inside of LMF Mon Aug 19, 2013 7:41 am

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@stocks hunter wrote:LMF will not get anything from the fonterra issue. All imported milk powder has this issue(WAY powder or DCD). LMF products are imported from AUS.

Future volume may come down drastically. U can ask what has happen to the sales of ANCHOR products from their agents during past couple of weeks.

Now u can't play with sri Lankan consumers as well. This is the high time to consume liquid milk produce from our own milch cows.

By the way LMF may benefitted from AMBEWELLA liquid milk sales. Because they owned sri lanka's best two farms(Ambewella farm + New Zealand farm - Ambewella) by now which produces high quality liquid milk and other milk products.

Yes. All Imported milk powder products will effect to this issue. So local milk producers get the benifit.

Jana1 · 4 Re: Inside of LMF Mon Aug 19, 2013 9:47 am

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Does court prevented all NZ milk powders? Nooo

Only foterra according court statement...

traderathome · 5 Re: Inside of LMF Mon Aug 19, 2013 10:00 am

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Dont think so. people will jump into liquid milk so fast.due to lack of distribution channels people will go for Australian milk powders.
Its to do with peoples habbits,not so easy to change overnight.
i have to agree with LMF statement.

salt · 6 Re: Inside of LMF Mon Aug 19, 2013 10:15 am

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http://sinhala.lankanewsweb.com/exclusive/9580-2013-08-18-12-35-33

I don't know how true this story
This is not authentic information
you better read & judge on your own

hettdas · 7 Re: Inside of LMF Mon Aug 19, 2013 10:33 am

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@Jana1 wrote:Does court prevented all NZ milk powders? Nooo

Only foterra according court statement...

I heard Australian Milk also had DCD. Maliban also imported from Australia.

Please read below link

http://www.srilankamirror.lk/news/9271-dcd-in-anchor-maliban-and-diamond

Jana1 · 8 Re: Inside of LMF Mon Aug 19, 2013 10:37 am

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@hettdas wrote:

@Jana1 wrote:Does court prevented all NZ milk powders? Nooo

Only foterra according court statement...

I heard Australian Milk also had DCD. Maliban also imported from Australia.

Please read below link

http://www.srilankamirror.lk/news/9271-dcd-in-anchor-maliban-and-diamond

Court band only for two weeks. Just fonterra, not all NZ products...

http://za.news.yahoo.com/sri-lankan-court-bars-sale-fonterra-milk-products-101437484.html

sureshot · 9 Re: Inside of LMF Mon Aug 19, 2013 12:33 pm

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better drink plain tea Very Happy

rainmaker · 10 Re: Inside of LMF Mon Aug 19, 2013 2:20 pm

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It is the tiny tots who are most affected in this fight for local vs imported business

Dileepa · 11 Re: Inside of LMF Mon Aug 19, 2013 3:49 pm

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If there is a company to take advantage of the current situation,
I think it is NEST. Not LMF

UKboy · 12 Re: Inside of LMF Tue Aug 20, 2013 12:15 pm

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Good post Jana,
The only reason why im not investing in this group is non other than HJ's age. It may sound crazy but i fear without him this group will be struggling.
Ok for tradings.

Rocky · 13 Re: Inside of LMF Tue Aug 20, 2013 2:24 pm

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Import and Distribute is a trading business.
No value addition... No premium price.

Anyway, MilkPowder is a commodity now. Added to that CAA is an issue!

The Alchemist · 14 Re: Inside of LMF Tue Aug 20, 2013 3:13 pm

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However way you look at it, their is case to be made for LMF.

Even if we forget the DIST stake of Rs 190 per share (which is hard to do) and the Milk Powder business (LAKSPRAY), their Fresh Milk (Ambewela & Pattipola) and other ancialliary businessess made approx Rs 50 Mill for the June Quarter. This may go up in future quarters due to Milk powder issues. even if it remains constant, this means Rs 200 Mill profit from Fresh Milk or Rs 5 per share EPS (total EPS with DIST Div & Milk Powder is extrapolated from 1st Q to approx Rs 12).
So if we segregate the core Fresh Milk Dairy & Agriculture assets that amount to approx Rs 50 per share, ROE from total Milk Business is over 20 % and from fresh milk business is 10 %. you get this ROE at a Price to Book ratio of 2.4 times at LMF Price Rs 120. (The NAV including DIST stake will soon be approx Rs 250).

In comparison, NEST made approx Rs 31 EPS for 1st six months 2013. even if they make Rs 70 EPS for 2013, the NAV without dilution of a dividend will be Rs 90 as at end dec 2013. so its trading at over 35 times end dec 2013 Earnings and over 28 times end dec 2013 Price to Book ratio.

Is the Jury in or out on LMF ?

The Alchemist · 15 Re: Inside of LMF Tue Aug 20, 2013 3:40 pm

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Maybe good advise to Harry J !

One day the Buddha was sitting in the wood with thirty or forty monks. They had an excellent lunch and they were enjoying the company of each other. There was a farmer passing by and the farmer was very unhappy. He asked the Buddha and the monks whether they had seen his cows passing by. The Buddha said they had not seen any cows passing by.

The farmer said, "Monks, I'm so unhappy. I have twelve cows and I don't know why they all ran away. I have also a few acres of a sesame seed plantation and the insects have eaten up everything. I suffer so much I think I am going to kill myself.

The Buddha said, "My friend, we have not seen any cows passing by here. You might like to look for them in the other direction."

So the farmer thanked him and ran away, and the Buddha turned to his monks and said, "My dear friends, you are the happiest people in the world. You don't have any cows to lose. If you have too many cows to take care of, you will be very busy.

"That is why, in order to be happy, you have to learn the art of cow releasing. You release the cows one by one. In the beginning you thought that those cows were essential to your happiness, and you tried to get more and more cows. But now you realize that cows are not really conditions for your happiness; they constitute an obstacle for your happiness. That is why you are determined to release your cows."

Source - Sageworld

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Inside of LMF

1 Inside of LMF Sun Aug 18, 2013 6:36 pm

Jana1

2 Re: Inside of LMF Mon Aug 19, 2013 7:26 am

stocks hunter

3 Re: Inside of LMF Mon Aug 19, 2013 7:41 am

hettdas

4 Re: Inside of LMF Mon Aug 19, 2013 9:47 am

Jana1

5 Re: Inside of LMF Mon Aug 19, 2013 10:00 am

traderathome

6 Re: Inside of LMF Mon Aug 19, 2013 10:15 am

salt

7 Re: Inside of LMF Mon Aug 19, 2013 10:33 am

hettdas

8 Re: Inside of LMF Mon Aug 19, 2013 10:37 am

Jana1

9 Re: Inside of LMF Mon Aug 19, 2013 12:33 pm

sureshot

10 Re: Inside of LMF Mon Aug 19, 2013 2:20 pm

rainmaker

11 Re: Inside of LMF Mon Aug 19, 2013 3:49 pm

Dileepa

12 Re: Inside of LMF Tue Aug 20, 2013 12:15 pm

UKboy

13 Re: Inside of LMF Tue Aug 20, 2013 2:24 pm

Rocky

14 Re: Inside of LMF Tue Aug 20, 2013 3:13 pm

The Alchemist

15 Re: Inside of LMF Tue Aug 20, 2013 3:40 pm

The Alchemist

16 Re: Inside of LMF

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