MAJOR PROBLEM Kerry Group Old Shares

popa smurf

amadain wrote: »

GREAT THREAD Boys

It is a good tread and an important tread to keep us that are away from the farming scene informed, greed is a terrible thing as we see from the charity feeasco last few weeks and they will always be people that will want more than there fair share. Its still a great country for who you know and jobs for the boys and brown envelops so keep up the good fight lads.

BannerBarry

Thanks Kerry2016 for starting the thread and all for the support here.
It is great to have a forum for similar minded members of Kerry Co-Op.

Hopefully over time the echelons of power in our CoOp will realise that the members deserve a better structure and deserve a better value for our shareholding than we currently have.

No more cash pay for the 28 Kerry co-op Directors I say.
Give them all only Kerry CoOp shares valued at Book value instead of cash (31 Kerry co-op shares instead of €15,000 cash plus any expenses consultancy fees etc)... A refocus of their priorities may come out of it!

popa smurf

On a positive note lads if all shares were converted that day back in 1986 would we have many shares left today, personally I think I would have sold them at small money if you said 20 years ago each share would be worth 80 euro chances are you would be locked up.

Kerry2016

What direction do ye think we should try take things now lads as regards getting a conversion? We'd good momentum going for a while there

BannerBarry

I think the chances of getting a share conversion in 2016 are as good as that of Ireland winning Euro 2016 through a technicality!
I'd say our only option in my opinion is to constantly remind any Directors we know and Advisory members and the Thread here we want 100% of our shares converted to Kerry Group PLC shares.
Are there any other options that we should consider?

fepper

It could take a while yet to try and convince the diehard coop principal people at the AGM this year that the plc is running the show now,but at least lots of debate at AGM which will open up these peoples minds to reality now hopefully

kerry cow

What's up with kerry shares they are falling day on day . Any reason why ? Rumour around kerry that the arse is going to fall out of them and that they are over priced , why ???

fepper

Lots of selling of plc shares by lads id say,if I had loads of plc shares id sell a good few when they were over €80,cant see them dropping spectacularly if anything they'll bounce back again even higher in the future

BannerBarry

Kerry Groups results for the 1st 6 months of 2016 are out 4th August.
The shares are probably just a little choppy before that result update.
Fingers crossed they have some value acquisition to announce on 4th August... that is usually the best catalyst for driving the share price higher... along with good results of course :-)

popa smurf

kerry cow wrote: »

What's up with kerry shares they are falling day on day . Any reason why ? Rumour around kerry that the arse is going to fall out of them and that they are over priced , why ???

Some people always have the bad story, if I listened to so called experts ,financial advisors over the last 20 years I would be out in the road , diversify I was.told, hold shares in different industries don't have all your eggs in the one basket, you rember the phase blue chip companies bank of ireland , AIB, ILP, all went belly up and all started with a rumour.

BannerBarry

Great point Popa Smurf... Most of the wealthiest in the world made all their money on one single big bet.. Bill Gates, Mark Zuckerberg, Michael OLeary etc. The diversification and the pillar stocks only suit the fund managers who charge an arm and leg to "help you diversify"...@ 1% a year annual fee!

cute geoge

I heard that a good few lads at the last co op agm nearly got heart attacks when it was announced that there was no conversion on the horizon maybe some of these lads are offloading shares now and jumping on the next hot tip

fepper

Its the plc shares that are dropping in value at the moment, nothing to do with coop shares or coop AGM non conversions

BannerBarry

Good half year results by Kerry Group today.

* Profits up 7.5%

* Forecast profits for 2016 on track.

* Dividend up 12% (Kerry co-op should get €13.5 million dividend over the next 12 months if the final divided is going to be up 12% also.)
This is a potential €3.43 divided per Co op share... If they paid out all the dividend they receive to Co op shareholders

* Sales a fraction up.
* Cash flow well up
* Debt down.

No new acquisitions announced.

They tick all the boxes on these results. Maybe a fraction low on sales alright.

Kerry2016

BannerBarry wrote: »

Good half year results by Kerry Group today.

* Profits up 7.5%

* Forecast profits for 2016 on track.

* Dividend up 12% (Kerry co-op should get €13.5 million dividend over the next 12 months if the final divided is going to be up 12% also.)
This is a potential €3.43 divided per Co op share... If they paid out all the dividend they receive to Co op shareholders

* Sales a fraction up.
* Cash flow well up
* Debt down.

No new acquisitions announced.

They tick all the boxes on these results. Maybe a fraction low on sales alright.

In their previous quarterly results they'd talked about how they'd be hoping for a currency tailwind to help along our growth, however because of Brexit the sterling has lost some of its value against the euro which is a bad thing for us when our profits are being repatriated into euro from the sterling. That obviously isn't managements fault though, all in all I was perfectly pleased with today's results.

On another topic a retired dairy farmer said to me recently that he thinks Kerry Group PLC should give all their processing plants in Ireland back to the farmers as part of a bargaining chip to get the rest of the Co Op shares converted. Men like him are a typical example of what we're up against. He'd climb a mountain if you told him there was €50 at its summit under a rock but when it comes to all our shares getting converted the likes of this man then are totally anti everything that Kerry Group try to do… have any of ye heard much as regards reactions to the AGM or any rumblings lately about what's going on with our Co Op shares?

BannerBarry

Talk about missing the wood from the trees from the retired farmer.
I wonder what feedback would Glanbia Co-Op B shareholders give this farmers on buying back the CoOp at a cost of €100K plus and now getting a crap milk price from the company they own 60% of.

No idea on what's going on right now with the Co op. Long drawn out process before we get 100% of the shares converted I'd say.

Kerry2016

BannerBarry wrote: »

Talk about missing the wood from the trees from the retired farmer.
I wonder what feedback would Glanbia Co-Op B shareholders give this farmers on buying back the CoOp at a cost of €100K plus and now getting a crap milk price from the company they own 60% of.

No idea on what's going on right now with the Co op. Long drawn out process before we get 100% of the shares converted I'd say.

We need to be persistent with our dealings with the Co Op board. Apparently they now think they've got the full backing of the milk suppliers as regards not converting the shares. I don't know where they got that ****ing idea tbh. Milk prices have never before been as bad as they are now, the average dairy farmer in Ireland owes €30,000 to merchants… the current milk price is pretty much here to stay, it's not going to get a whole pile better for us, it's absolutely criminal that the Co Op board won't flush out the €2bn worth of our shares that they're clinging onto, it's actually just bare face ****ing insulting that they're trying to pretend to be working in our best interests, how tick do they think we are like?

fepper

Kerry2016 wrote: »

We need to be persistent with our dealings with the Co Op board. Apparently they now think they've got the full backing of the milk suppliers as regards not converting the shares. I don't know where they got that ****ing idea tbh. Milk prices have never before been as bad as they are now, the average dairy farmer in Ireland owes €30,000 to merchants… the current milk price is pretty much here to stay, it's not going to get a whole pile better for us, it's absolutely criminal that the Co Op board won't flush out the €2bn worth of our shares that they're clinging onto, it's actually just bare face ****ing insulting that they're trying to pretend to be working in our best interests, how tick do they think we are like?

the board are supposed to be trying to sort out the problem re the shares that all of us at agm had to keep secret so maybe not so straight forward process at the moment

BannerBarry

If Kerry Group are owed an average €30,000 on the Agribusiness side ( €100m for 3,300 milk suppliers) I'm sure they would love to have thr Co op board do a 100% conversion asap. With Stan out and O'Callaghan out of favour I doubt anything will be done until the Milk price is resolved.

fepper

I think every plc/ coop milk supplier will always have milk price issues now and into the future with markets being so volatile at times,having coop/plc shares won't improve milk price ever but it'll give farmers /shareholders a softer landing if things go belly up!!

BannerBarry

100% correct. Kerry Agribusiness suppliers in general are in an enviable position with the asset values they have compare with all other milk groups.

On average the Kerry Co op milk suppliers have more than €200,000 of share value locked in the co op.

For a 1.4 cent milk price difference each farmer would have to supply > 14 million litres of milk to accumulate that share wealth with a West Cork milk price....

putting it another way he would need to now have 2,850 cows... or supply milk for 35 years to make the €200K (Avg 80 cows)

Numbers are ball park but €200K value today is better than milking cows for another 35 years with the extra 1.4c

Add in the 0.6cent hardship payment received and you need 5000 cows to accumulate the same value and supply to West Cork !

fepper

BannerBarry wrote: »

100% correct. Kerry Agribusiness suppliers in general are in an enviable position with the asset values they have compare with all other milk groups.

On average the Kerry Co op milk suppliers have more than €200,000 of share value locked in the co op.

For a 1.4 cent milk price difference each farmer would have to supply > 14 million litres of milk to accumulate that share wealth with a West Cork milk price....

putting it another way he would need to now have 2,850 cows... or supply milk for 35 years to make the €200K (Avg 80 cows)

Numbers are ball park but €200K value today is better than milking cows for another 35 years with the extra 1.4c

Add in the 0.6cent hardship payment received and you need 5000 cows to accumulate the same value and supply to West Cork !

Well explained there banner,puts life in prospective and not to be a martyr,no thanks!!

cute geoge

Are the results that rosy if you factor in if plc lose the leading milk price court case ,
The plc share price has sky rocketed the last few years ,it has only one way to go imo.
I am not an analyst but a share cannot keep snowballing indefinitely especially when the primary producer of there raw material is being thrown to the wolves

fepper

cute geoge wrote: »

Are the results that rosy if you factor in if plc lose the leading milk price court case ,
The plc share price has sky rocketed the last few years ,it has only one way to go imo.
I am not an analyst but a share cannot keep snowballing indefinitely especially when the primary producer of there raw material is being thrown to the wolves

There is no court case,it's arbitration between plc and suppliers,stock market always fluctuates,

Kerry2016

cute geoge wrote: »

Are the results that rosy if you factor in if plc lose the leading milk price court case ,
The plc share price has sky rocketed the last few years ,it has only one way to go imo.
I am not an analyst but a share cannot keep snowballing indefinitely especially when the primary producer of there raw material is being thrown to the wolves

Was reading through a few of the analysts predictions on Kerry's share price in the past week, they're expecting the shares to finish 2016 at somewhere between €83 - €91 so we can't complain too much… I don't see how it makes any difference at all to the share price how the people producing the raw material for Kerry are having a tough time, the cheaper that Kerry can get their raw material the better would be their way of looking at it

fepper

I'm sure if more milk was wanted by Kerry plc they'd have to up the price but for now they seem to be awash with it so no need to overpay for it,win win for plc on that but until their is a milk drought going forward its a buyers market

BannerBarry

In 2002 Kerry Groups Earnings were 56 cent
In 2006 they were 96 cent
In 2015 they were 300 cent
In 2016 they are on track for 325 cent or so.

In 14 years their profits have grown 6 fold (nearly 50% per year)....

That's why the share price is as high as it is... The growth isn't over.
The stock market don't believe it's over and want to buy the growth.

Cute George, if you feel it's over let's get 100% of the Co Op shares converted before the crash... now is the time to let CoOp shareholders decide whether they think growth or decline on our 24 million Group shares.
Let them decide with a Kerry Group share certificate in their hands.

cute geoge

fepper wrote: »

the board are supposed to be trying to sort out the problem re the shares that all of us at agm had to keep secret so maybe not so straight forward process at the moment

Whats the big secret??
I was not at agm as only have a handful of shares but i heard there is a big tax libility in any future conversion

BannerBarry

Cute George, a handful of Kerry Co-Op shares is still worth more than a few thousand shares in most other Co Ops.
They are still a great share to have.
Kerry co op pay more in dividend per share each year than the worth of most other Co Ops share value... and some of the other Co Ops have to share up based on milk supply.

fepper

BannerBarry wrote: »

Cute George, a handful of Kerry Co-Op shares is still worth more than a few thousand shares in most other Co Ops.
They are still a great share to have.
Kerry co op pay more in dividend per share each year than the worth of most other Co Ops share value... and some of the other Co Ops have to share up based on milk supply.

I wish I had way more coop shares in Kerry coop as banner says dividends are better than other coops thanks to plc being its partners along the way but I suppose you should never look at gift horse in the mouth so am grateful for the few I have