Happy NY folks...my radar popped-up the NSDQ application PR. Sweet! One question and one comment while I'm around:
Does the NM listing get rid of the current market-makers on STKL or just potentially add more?
In scanning the board since my last post re: JK and that blasted acquisition, I felt I should clarify that I wasn't questioning JK's ethics at any point, I was questioning his ability to stay focused on a stated goal (and I'm staying undecided until I see 4Q #'s - the entire answer for me will be in the margins...period). Buying even a piddling little kosher shop requires some amount of DD (or else I'm REALLY gonna start worrying!)- and diverting any manpower away from pulling up those margins isn't acceptable in my book until they post a quarter with a documented improvement. I work in a company where the top level gets it's kicks 'doing the deal' and then the rest of us divide our attentions to handle the myriad administrative/financial issues involved. There's just no way to do a deal, no matter how small, without diverting some focus in your operations staff. Totally IMO, but I'd be happier if JK just stuffed his little deal-maker back in his pants until he puts-up some solid results to back his promise in last CC.
Your post prompts me to ask if you saw my post of a response from SunOpta IR regarding the Hahamovitch acquisition?
If you had read that post you would know this businesss is probably the HIGHEST MARGIN business SunOpta now owns and they more than did their due diligence (as you should know from the PR as well):
"The acquisition of Hahamovitch will have zero effect on the Q4 earnings since it takes place at the end of December 2005. This is an excellent acquisition, although small, it consolidates our dominant supply position of the Kosher market in Canada. This is probably the highest margin, single business, that we now own.
The acquisition was fully supported by the suppliers of kosher products since it enables them to deal with a single organization in Canada.
You may have seen a number of articles recently how kosher products are being sold to a wide community beyond the Jewish community due to their quality and fact that many of the products are organic. In fact, the largest consumer of kosher products are Muslims.
The cash portion was 45% and the remainder 55% interest free note. There will be no accretion to Q4 and no charge.
Best wishes for a happy holiday season, Donna Jones Executive Assistant
for Susan Wiekenkamp
-------------------------------------------------------------------------------- From: WildStoic [mailto:firstname.lastname@example.org] Sent: Thursday, December 22, 2005 10:02 PM To: Susan Wiekenkamp Subject: Les Importations Cacheres Hahamovitch Inc.
Can you please give me additional information on the acquisition of Les Importations Cacheres Hahamovitch Inc.?
As you know from the effect on STKL share price, the reaction was quite negative due to fear this will torpedo Q4 earnings, though clearly in the long term this is a fantastic acquisition.
Can you tell me:
1. How much is the CASH portion paid for this acquisition?
2. What portion (if any) of Hahamovitch's profits will accrete to SunOpta in Q4?
3. Will this acquistion equate to a charge against Q4 earnings?
I will share any information you can give me with other SunOpta investors. If you can't give answers to any of these questions to me alone due to financial regulations I understand but urge you to publically share this information before any more damage is done to share price by unwarranted assumptions and unanswered questions.
Happy new year Wild - and I did indeed see your post(s). I'm not arguing any of those facts (and I appreciate your continued relay of IR info) - though my belief is that this acquisition was so insignificant economically that it's immaterial to consolidated margins no matter how rich this line might be. Was it a good fit/smart deal - maybe. My argument continues to be that STKL needs a moratorium on ALL acquisitions until they prove they can produce increased earnings. I don't (just!)want to see PRs about initiatives, I want to see cold hard $$$. JK's (again, IMO folks) acting like an adrenaline junkie going after deals to keep his rush. He comes out of the CC promising a focus and singular effort, but he's throwing deal-making dt's before the Q's out and needs his fix, no matter how minor.
I sincerely hope I'm proven 180 degrees off-base come next earning release - and that JK struts into the CC with his thumbs hooked in his suspenders with a Cheshire Cat grin on his face and blows the doors off the street. I'm long and not lookin' to bash - but my gut tells me somethings not completely kosher (pun intended <G>).