I am a new and happy owner of WNR- Wingara Ag LTD. I truly...

I am a new and happy owner of WNR- Wingara Ag LTD. I truly believe WNR could greatly outperform the microcap market over the next 12 months for the reasons below.


·China is becoming a large consumer of Oaten hay products with one of the largest contributing factors of increased consumption is China’s souring trade relationship with the USA due to the trade war. This means a lower consumption of US alfalfa (Lucerne) products for their dairy industry and an increase buying of Australian Oaten Hay. Most importantly, as China is attempting to become more self-sufficient in their dairy industry – there is increased growth in the consumption of Australian Oaten hay products in China. This resulted in a Wingara achieving a 38% increase for 2017 for its Oaten Hay exports to China with an expected further 25% increase for 2018.

·Consequently, this has caused Oaten Hay to hit record high prices. This reality has prompted Wingara Ag LTD to increase export factory size (Raywood) and thus capacity from 33,000mt to 70,000mt of hay by March 31 2019 – a 115% increase that could double its hay related revenues over the next FY. Once export production is at its peak Wingara has the capacity to export up to 200,000mt PY – representing a high growth opportunity.

· Wingara is also expanding its export business into key Asian markets by acquiring Austco Polar Cold Storage (Austco) for $18.5m. Austco Polar is a cash flow positive business with further high growth potential by exporting key products into Asian/ Chinese markets.

·The increase of export capability by Wingara into; farmland, Green and Red products opens Wingara to increase growth to the order of 250,000mt of hay products, 3,000,000mt pa of green products and 150,000t of red products over the next three years – a massive increase in product and revenue.

·Despite some massive acquisitions the market cap of WNR – Wingara is under-priced as it has dropped back down to its pre-acquisition share price of circa 28c from 37c a 25% drop. I believe Wingara represents a high value opportunity as it is currently under-priced with large growth potential.

Importantly, WNR - Wingara Ag LTD was operationally profitable with $4m in the back as of the last quarter with a lot of growth in its sight.