“Creating and retaining trust is not easy” - could you please elaborate on this? My concern is that Shrimp feed is a commodity product. What are the key pain points for the farmer that may make him switch to a competitor product?
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May 2018 month data for US Shrimp imports is out…
total US shrimp imports decreased by -5.6% in May 2018 compared to May 2017 but imports from India increased by 4% in May 2018 on May 2017. Although May numbers are disappointing, total US shrimp imports from India this year from Jan to May is at 23.7% growth.
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Mutual Fund holding of Avanti Feeds has shown a decrease from the last 3 months (i.e Mar’18 , Apr’18, May’18)
Source: https://www.rupeevest.com/Mutual-Fund-Holdings/112573
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Will US new tariff which includes frozen meat can have +ve impact on Avanti / Apex. Though it’s very early to seek conclusion but cannot ignore the impact if the ban materializes. Expert people can share their views.
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With the introduction of MSP, the raw materials for feed: soya prices is expected to increase. Agreed that the price will be passed on to consumers.
Hope the main competitor on the world stage doesn’t become competitor on the domestic turf as well.
Indra Kumar in one of his recent interview had said, he will not increase the feed price this year as Farmers will not be able to afford it.
Thai grp assurance of continuing partnership with Avanti Feeds
https://www.bseindia.com/corporates/anndet_new.aspx?newsid=91c02cc7-7de6-43a1-999f-a451e221d4a1
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I don’t get it. Why doesn’t management ignore this “some investors have questioned” nonsense, and just get on with shrimp feeds and packaged products? You know, focus on the stuff they’re good at doing?
As Tony Deden said in his interview, it’s beginning to feel like the company’s product is its own stock, rather than shrimp feed. I hope sanity prevails.
It looks like management is in panic after seeing stock price crashed to almost 52 week low. They are trying to control the damage by issuing such kind of clarifications which is unwarranted and they should focus on business only. If fundamentals are strong, stock price will catch up sooner or later.
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As per this article, shrimp prices have fallen below the production cost in Tamil Nadu, Andhra, Odisha, West Bengal and Gujarat.
Confusing signals from Management
If any mgmt gives a response to rumours, or tries to stem price fall by issuing clarifications…it gives a wrong signal.
Cos shd be indifferent to stock price movements
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No way this business and Avanti in particular are going to see the amazing dip in input RM prices and sales growth of past 18 months or so, for some time, will take 12 months or likely more for some recovery in growth of profits.
Discl: Was 4% of portfolio, 8% together with Waterbase. Pulled out completely 2 months ago. Invested since Sept 2017.
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