Interesting and rational comments though I don't take much notice as to what Morningstar says.
Company remains debt free.
Low margins in supermarkets are a problem.
Often, WOW or COL have the well known Country Life soap packs (450g) discounted from $2.75 to $2.20. The deal's inner workings (shelf placement/advertising fees and so on) remain hidden but this is a very low price for excellent soap that we always buy.
Purchasing HwB was PTL's attempt to reduce dependency on these supermarkets' buyers who by all accounts are tough negotiators with smaller manufacturers.
That PTL has to compete against multinationals must be onerous, although White King does very well and in some lines is #1. (A great effort). Janola in NZ may be similarly well regarded but container shipping costs have gone through the roof, and delays are frequent.
After announcement of the placement(s)/SPP, the SP dropped from c.46 cents. I sold to take advantage of the arbitrage, and then subscribed for the SPP.
Agree there's little action. 'Mr Market' (grumpy old chap) looks to be reserving his judgment until half yearly results appear. A full year's results would be better, given HWB acquisition may well be like say MYR and other retailers and do much better from July to December than January to June. (But I'm no expert retailer/hamper providore).
PTL Price at posting:
39.5¢ Sentiment: Hold Disclosure: Held
