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Yes, yesterday was the day!
Yes - sold results if not spectacular. I bought yesterday wondering if the price reflected people-in-the-know selling - but probably not the case. The price should move on up from here.
SP nicely up
Should have bought yesterday!
As we suspected - share price decline has nothing to do with profits decline. Nice tick up in sales in a difficult climate, double digit increase in profits, and most importantly the move to the new site has been completed. This should offer such good improvements in efficiency and flexible capacity. They took on a lot of debt to pay for it, but that has come down impressively. This time next year they may be back to net cash.
If the share price does not rebound today markets really are irrational!
Moving against the market! More sells than buys. Strange.
TET used to be a good growth stock. Can't really see any reason for it to have fallen so much but the market is mad.
Looks like buys exceed sells and the sp is trying to recover a bit. Hoping a recovery might happen into the winter period but based on nothing really other than people baking and eating sweets.
The SP drop below £5 has caused me to think about adding some more too – would have been a straightforward decision if I was simply buying back in having sold earlier in the year at £7! Unfortunately, I’ve still not got a crystal ball.
The current PE following the SP drop sits better so in my view it’s now how those operational efficiencies from the new premises come through set against the negative of the higher interest costs (see the IR sensitivity analysis in the 2022 AR – p147). May be wishful thinking on my part but I’d like to think with their experience, they will be able to maintain overall margins on higher raw material costs albeit possibly helped by a move to more premium, higher margin products in general.
We should get an insight on all that with the end of year trading update in about a month – hopefully will be a catalyst for a meaningful SP upwards movement so will need to make my mind up on adding before then.
On fundamentals it has been overvalued for years, but presumably the reason was it was a growth business and earnings would soon catch up with the valuation. I'm not surprised that it's correcting itself at some time, but a bit surprised now with the new HQ coming along - which is going to reduce coast. increase capacity, and efficiency. I'm ready yo add, but would like to see this long term down trend reverse a bit first.
Yes, I've hung on but no idea why such a battering.
Well the market really has it in for this stock. Used to be a good one. Not sure what the extent of the problem is. A high P/E perhaps?
Not seen anything specific to explain the drop in the SP - jitters about price of oranges with adverse weather? Perhaps some downside from China slowdown affecting future growth (albeit not a large part of the business as yet)?
Well today so far bought value is higher than sold value. I like to think this means something to the upside. Problem is, many of the trades are bots distorting the market. So much about today's world is annoying like that - it's like being plagued by flies.
If we can get above £6 I'd be content. For some reason I think that the winter period might be more favourable but that's just becuase I'm irrational.
Looking that way based on current direction of the SP!
Checking back in here - no sign of a 700+ share price. Future looks positive according to Simply Wall st. So next stop 400 I suppose....
Thanks for these links piworld. I watched the presentation which seemed very positive.
Treatt CEO, Daemmon Reeve and CFO, Ryan Govender present interim results for the six months ended 31 March 2023, followed by Q&A. Record H1 revenue and strong profit growth with trading in line with expectations for the full year.
Video: https://www.piworld.co.uk/company-videos/treatt-tet-interim-results-presentation-may-23/
Podcast: https://piworld.podbean.com/e/treatt-tet-interim-results-presentation-may-23/
I can understand the share price not moving much. The results looked a bit of a mixed bag to me - albeit slightly more positive than negative.
Good and positive half-year results, plus a broker buy rating last month, but oddly no price movement today. Hope to see some movement beyond 700p very soon.
And what I hope we begin to see in the second half is the economies and benefits of their new site. It should reduce overheads (though of course it's increased debt which needs servicing, but that has come down nicely this half.) make for more efficient operations and give them far more flexibility in production.
Me too, used part of this year's ISA to top up yet again. Been great to be able to add at these low prices before the market corrects the recent downward blip.
Yeah me too - they're back on track. Added at 598p too.
I'm no expert, but the H1 trading update released today seems impressive. I added some more at £5.98. Hopefully the company is back on an upwards trajectory?
Simple theory. As quality of food drops ever lower, then artificial flavouring must be added to encourage us to eat crap.
Treatt management, Daemmon Reeve, CEO and Ryan Govender, CFO present full year results for the year ended 30 September 2022.
Video: https://www.piworld.co.uk/company-videos/treatt-tet-full-year-2022-results-presentation-november-2022/
Podcast: https://piworld.podbean.com/e/treatt-tet-full-year-2022-results-presentation-november-2022/
Nice analysis H. The market seems to agree with as well, though would have gone up more but for the general doom and gloom. I never thought I would hear myself think - bring back Boris/Rishi.