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Looks like the RBNZ wants to do something about falling house prices and is planning (currently in consultancy phase) to loosen the LVR:
https://www.rbnz.govt.nz/hub/news/2023/04/reserve-bank-proposes-to-ease-lvr-restrictions
Upon hearing this news and the fact that migration appears to be returning to normal, I thought that this could signal a bottom in the property market, which could make it worth doing some analysis on NZX:SUM. However, the proposed LVR changes are too gentle to peak my interest.
Scales annual report is out today. The market seemed to like it, rewarding Scales' share price with an increase of 6.23% on the day.
I took a quick glance through and I did not like the look of it. I'll take the time to go through it properly later and write an article summarizing my opinions. From my initial quick skim though, I am concerned with the lower than (I) expected growth in the Proteins division, the dividend that's greater than the headline earnings per share (especially with repair costs coming up from the weather damage) and all the talk about past years successes in lieu of talk about this year's success.
Finally I am always concerned to see swathes of pages of ESG in reports. While social responsibility is good, the focus gives me concern. I mean, it's not like it's an oil company; they grow apple trees and turn abattoir waste into pet food.
Im also questioning the logic about a company that suffered damage from the cyclone gifting $0.25m to cyclone damage (whatever that means). Seems like the money would be better spent looking after staff and securing jobs in the horticulture business by repairing the damages. But perhaps I'm wrong, after all, it's unknown to me how and to who the money was gifted.
Anecdotally, I have noticed an inverse correlation between the presence of ESG in reports and company financial performance / business strategy / quality decision making for other businesses in recent years. This adds to my skepticism.