Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Morningstar Says No To Fonterra Offer

A novel structure to participate in Fonterra’s growth but pricing uncertainty prompts us to remain on the sidelines.

Fonterra Shareholders’ Fund Pre-IPO Report
Recommendation: Do Not Subscribe

Investment Perspective
The Fonterra Shareholders’ Fund provides individual investors an opportunity to participate in Fonterra’s performance through dividends and unit price appreciation. Being a significant exporter of milk and milk products, Fonterra’s fortunes are inextricably linked to growth in dairy consumption particularly in Asia and Latin America. However we believe the company does not have an economic moat as it generates low returns on capital. We mainly attribute this to the commodity nature of its business. The higher margin branded goods category accounting for 35–40% of earnings offers the potential to lift returns but the presence of established multinational players like Nestle and Danone makes this task challenging…..

PDF File of Full Report

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

NZ's Space Programme: Rocket Lab Makes It To Space (But Not Orbit)

Electron lifted-off at 16:20 NZST from Rocket Lab Launch Complex 1 on the Mahia Peninsula in New Zealand. It was the first orbital-class rocket launched from from a private launch site in the world. More>>

ALSO:

Earlier:

Budget: Irrigate (Good Times, Come On!)

Additional grant funding of $26.7 million over the next three years plus a capital boost of $63 million towards irrigation investments in Budget 2017 will deliver economic and environmental benefits through better use of water... More>>

ALSO:

Silver Fern Farms: Proposal To Close Fairton Sheepmeat Plant

Silver Fern Farms has advised its people of the proposal to permanently close the site, and has discussed potential transfer options to its other sites in the region as part of the consultation process...
More>>

ALSO:

MPI: Myrtle Rust Appears In Taranaki

The nursery in Waitara (just north of New Plymouth) reported suspected myrtle rust symptoms on young plants to the Ministry’s 0800 number yesterday (Tuesday). More>>

ALSO: