Following up from my previous post on CMZ, I had the privilege to have a call with their IR manager Dave Tan, to better understand the effects of the late winter.

Below are the key notes from the conference call – please a note if you are interested for the full version. I am now vested in CMZ and remain confident that their prospect does not warrant its current low share price.

Conclusion:

• The late winter effect should not warrant such a strong fall in stock price (till date 45% price plunge)
• Sales & earnings growth are still expected for FY12
• Risks to catalyst are the likely decrease in margins & strong negative FCF trend
• Any substantial decline in its balance sheet quality can also pose further sell down risk

Key Takeaways:

• Sales from late winter is just a mere shift in earnings to 4Q and no spillover expected to ...