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ISB been beaten down too hard at these levels ngl. Food guys like Tiger Brands and Pioneer are on way better multiples, this is sitting at what, single digit PE if it's even profitable right now. If they can sort the distribution out and get margin back, R0.74 is a gift. Small cap so liquidity is eish but long money should be here.
ISB sitting at R0.74 but the food manufacturing space locally is actually tight margin stuff, ngl. Thing is if they can sort their cost base out with rand weakness helping exports a bit, could see some real upside here, beats sitting in a savings account anyway.
insb been dead money for a while but the fundamentals aren't broken, just needs to show revenue growth again. food and beverage plays in sa struggle when input costs spike but if they can land a big retail contract or two, margin story changes quick. sitting at 74c is reasonable entry if you believe management can actually execute, let's get a contract and then it will run, simple as that
after reading the MD&A, what stuck with me is how tight their working capital got in the last cycle, but the new distribution partnerships they signed are actually moving product faster now. comparing to Tiger Brands at similar revenue levels, ISB's margins are thinner but they're not carrying the same debt load, which matters when rand weakness hits input costs. at R0.74 this feels like you're paying for the turnaround story to actually work, not pricing in the downside if it doesn't.
ISB's margin squeeze is real with input costs still elevated even as rand stabilizes a bit. Food guys like this are getting hammered because consumer is stretched and they can't pass everything through to retail without volume taking a hit. Long-term view hasn't changed but near term inflation is still the headwind, rate hikes cooling demand. Rather wait for earnings to see if they're actually protecting margin or just shrinking.
ISB sitting at R0.65 is pretty cheap for a food manufacturer with actual distribution. Thing is, margins got squeezed last couple of years and the rand doesn't help when you're importing ingredients. Could be a turnaround play if management tightens up, but I'd want to see one good quarter before jumping in.
ISB sitting at R0.65 feels cheap for a food company with actual distribution networks already in place. Most of the smalls in this space trade on promise, ISB's got revenue. Catalysts moving forward are pretty clear if management can tighten margins on the back of load-shedding cost pressures easing. Risk reward is very compelling at these levels.
ISB sitting at R0.65 feels like the market has forgotten what this business actually does. Food and beverage plays in SA aren't sexy but they're stable, and compared to what Pioneer Foods was trading at before the consolidation, this valuation looks thin. The real question is whether management can grow volumes without getting crushed by input costs and load-shedding hitting their production. If they can hold margins through a tough cycle, positioned perfectly for the rerating when sentiment shifts.
ISB at R0.70 is basically giving away the food business at this point. earnings have been under pressure but the distribution network they've built isn't worthless, someone will figure it out eventually or they won't.
ISB sitting at R0.70 is interesting for food producers right now, especially with input costs all over the place. Company's got decent distribution into retail and institutions but margins getting squeezed like everyone else in the sector. If they can navigate the cost pressures without passing everything to consumers, could be a long term play for patient money.
ISB sitting at R0.70 but the food business isn't broken, just needs to prove it can win bigger contracts. Margins are there if they can scale distribution beyond the usual retail grind. Let's get a contract with a big customer and then it will run, simple as that.
Do you think ISB can actually turn this around or is the food manufacturing space just too tough right now. Last close at R0.70 is painful, not sure the balance sheet can handle much more pressure if revenue doesn't pick up soon.
ISB dropping 5.71% today looks like panic selling to me, the dividend yield is still respectable and the consumer goods space isn't collapsing that fast. Might be worth nibbling at these levels instead of running for the exits.
Isa Brands +6.2% today to R69.00. Who's buying this move and who's selling?