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

 

Fund For PPP Plans: Govt Embraces Targeted Rates To Spur Urban Infrastructure

The government's latest response to the Auckland housing shortage will see central government and private sector firms invest in 'special purpose vehicles' to fund essential roading, water and drains that Auckland Council can't fund without threatening its credit rating. More>>

ALSO:

Superu Report: Land Regulation Drives Auckland House Prices

Land use regulation is responsible for up to 56 per cent of the cost of an average house in Auckland according to a new research report quantifying the impact of land use regulations, Finance Minister Steven Joyce says. More>>

ALSO:

Fletcher Whittled: Fletcher Dumps Adamson In Face Of Dissatisfaction

Fletcher Building has taken the unusual step of dumping its chief executive, Mark Adamson, as the company slashed its full-year earnings guidance and flagged an impairment against Australian assets. More>>

ALSO:

No More Dog Docking: New Animal Welfare Regulations Progressed

“These 46 regulations include stock transport, farm husbandry, companion and working animals, pigs, layer hens and the way animals are accounted for in research, testing and teaching.” More>>

ALSO:

Employment: Most Kiwifruit Contractors Breaking Law

A Labour Inspectorate operation targeting the kiwifruit industry in Bay of Plenty has found the majority of labour hire contractors are breaching their obligations as employers. More>>

ALSO: