Thursday, March 16, 2017

Select Harvests reports fical 1HFY17 results

Select Harvests website:

EBIT was down around 38% from last year. This was mostly due to lower almond pricing. My view on this is the same as Warren Buffets who also owns some farms. Some years are up years and some years are down years regarding prices.

The main thing I am focusing long term on with regards to Select Harvests is the anticipated production growth over the next eight years. More production at current pricing or increased pricing means higher earnings.

Higher volume will lead to higher earnings

In addition the company recent acquired another almond orchard which will also contribute to earnings in future years.

Select Harvests continued its history of paying out a nice dividend and is currently around a 6% dividend yield. I consider this a long term investment and as the world continues to get wealthier, particularity Asia, I expect almond demand to increase.

As the trees grow, production will grow, earnings grow, and dividends will grow.

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