Do not concentrade on Maxico,they just start operation,within 1 year time,if they can cover all the overhead they incurred,than we can again thanks the effort of management.Since we hold them for long term,be patient.Here i hope they can put their effort to increase the export market,so we can enjoy their quarterly dividend.
Production in Mexico started in July. Factory utilization reaches 30% to 35% by this year end. Factory utilization reaches 60% next year provided everything goes smooth. Thus revenue and profit (from Mexico) will kick in into Able account slowly but surely moving forward.
Despite SQF certified, and with current utilization rate this year and next year, I guess it is unlikely to sell product to Walmart yet. Mexico and her surrounding neighbour countries have enough population to cater for the demands. Selling products to Walmart means Able Mexico needs massive production (100% utilization, or perhaps another new factory setup). It is just a matter of time Able's products reach Walmart. Just like Lao Tzu said "The journey of a thousand miles (to USA) begins with a single step (start from Mexico).
Recently bought a tin of Able Farm evaporated milk at Econsave. There are quite a lot of different brands so I think the competition is stiff. Other brands such as Marigold sells the same product at much higher price. The cheapest one I think is Teapot. I stood there for almost 20 minutes to observe. Througout the observation period 2 customers bought the product. The first customer said, "let's choose the cheaper one" then he took a non Able Farm product. The second customer came after a few minutes and he loaded his trolley with many Teapot sweetened condensed milk. So it makes me think that most of the customers looking for sweetened condensed milk or evaporated milk are price-sensitive. For those who have high income, they might choose the premium brand such as Marigold. Hence, I think, if one wants to be successful in selling these product, it has to be either the cheapest or best quality. What is your thought? (I do hold some shares of Able Global, I hope this company to do well, but I see no good avantage it has over its competitors at local market in Malaysia.)
What organic, what natural stuff are you talking about?? A smart consumer will always look at the Nutrition Facts at the packaging for all relevant information, rather than the gimmick "organic", "natural".... bla, bla, bla Aren't all the products SQF certified?
Able's packaging design and packaging outlook are for public acceptance, not just to suit individual perception only.
With their financial strength, they can push the price A LOT lower to make even the calmest investor nervous. Panic selling is a big mistake. The best way is to buy & hold tight, DON'T look at the price fluctuations which will drive you crazy. If it gets really low, buy more at a greater discount. Never doubt your investment in a good company unless the fundamentals have changed.
every country will protect their food industry, setting up farm in Mexico and import it to USA is a bad idea. USA will protect their dairy industry by imposing import tax or something... unless that product is unique or not essential, like chocolate or rice
HY2022 results seem reasonable. I wonder why this company only publishes CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS plus some Notes to the Condensed Consolidated Statement of Cash Flows. Why not simply the complete cash flow statements?
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....