big sky you ask interesting questions.the trip cost $2500 in...

big sky you ask interesting questions.

the trip cost $2500 in fuel and accommodation.

purpose was to asses the performance of the DBF farms

if the farms were being run at top 10 percentile it may be possible to pay the management fee and enjoy the capital gain.

i am certainly opposed to the management fee being charged on Total Assets. Then I think

The business is always going to trade at a discount to book value. The book value of the assets is calculated using market value (presumably). The farm market values, don’t have a management layer associated with the land values, whereas Duxton does, so it’s always going to trade at a discount to book values. Which means the highest and best use for them would be to remove the management layer and lease the property out. Total debt of $34m is also fairly large. Cash reserves are bugger all.

I think they are out of money and will need to raise more debt or capital raise. In fact I would think they are in a bit of a liquidity crunch, especially if they don’t get much of a crop this year.

At $1.57 they are marginally above the listing price. A capital raise could occur at maybe 30% discount say $1 or they sell some farms, which would be more logical. Except Ed and mates don’t have a job.

buying the Victorian farm is the direct opposite of a sound financial management.

the banks will make the final decision in a higher interest rate environment.

the current structure is costing the shareholders $1.02 per share or approx $42 million is lost/trapped in the current structure.

my buy price 80 cents only if I could remove the board and management fee

rgs,
cocky