Forum Archive Index - December 2003

[<feal.nz@xtra.co.nz>]

Hi Snoopy

Agreed the current share price of MCH tends to indicate a fish out of water, 
however I think this particular fish has every chance of becoming amphibious.
Sales have seen consistent growth of around 20% with increased exports to 
Australia.
This fish has recently doubled the output of its manufacturing plant and while 
this has introduced more flexibility and efficiencies to its production the 
companies bottom line is largely affected by depreciation costs.
The company has to renew its natural gas contract this year and expects to face 
rising costs in this area..
The decision to self insure for machinery breakdowns follows the decline of a 
substantial “material damage and loss of profits” claim following the failure 
of Freezer plant in Feb 2002 which according to their FY 2003 report “severely 
curtailed production over the following months until the startup of the new 
factory in September 2002”.Mr Chips is challenging their insurers decision to 
avoid liability with a court hearing set down for March 2004.
If company reports are anything to go by, MCH is well positioned for the future 
and confident that in the medium term they will achieve record sales and 
dividends per share.
If I have read a Sept 2003 SSH notice correctly, Majority shareholder Sinclair 
Long Term Holdings Ltd has just upped its stake from 51.28 to 52.7%, I’d take 
this as a vote in confidence in the companies future.
MCH supplies KFC and Pizza Hut and received the RBD Supplier of the year award 
at their recent annual conference.
Personally, I have always enjoyed a Mr Chips chip and with my current 
understanding of this company would be happy hook a few shares into my fish 
sack. Even the less desirable fish can be turned into a culinary delight given 
the right garnish and I think MCH is presently soaking in a very testy 
marinade. 

cheers
Barrel Scraper 


 



----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/