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TAN

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66.5¢ tandou limited

Ann: Annual Report to shareholders, page-9

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joewolf

5,641 Posts.

541

04/03/15

06:24

Post #: 14855355
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Originally posted by hydroxide ↑

Not unhappy with this at first glance.

The 2.25*[email protected] = [email protected] offer values it at NTA not at directors' valuation, which was always a little iffy (ie: if the valuation only works if Tandou's water isn't on the market), however if the SP of Webster continues climbing, then the value will more closely approach that value of [email protected] ~= WBA@$1.46. Particularly considering how the directors' valuation keeps on dropping. A minor factor is that a merger puts the company into the ASX300 which means more demand from index funds (eg Vanguard benches against the ASX300) and hence is likely to increase WBA's SP somewhat.

A merger means potential for economies of scale and increased profits -- higher dividends. Webster will pay dividends at full year (June) only, so if merger goes ahead by then, then that's a possibility. On the other hand, their dividends are normally small, and with the M&A may be smaller than last year, so it's a mixed bag.

I really liked the idea of TAN not being a pure water play company, and being able to have success in both wet years and particularly dry ones, but their cost of sales (particularly recently) has been horrible. WBA's comments in Review of Operations suggests that they intend to keep cotton -- "Significantly the acquisition [of AgReserves Australia Ltd assets] brings a large and multi-crop annual cropping operation, which directors believe will be complementary to its existing permanent walnut growing operations. The introduction of annual cropping is an important element in the chosen strategy... it is the intention of the company to ... grow the size of both the annual cropping and the walnuts operations."

-T.

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Really unhappy and will not agree to sell to WBA previously a shareholder there and then they did the sale of 15% to interests related to Mr Who had resigned in the previous financial year. There was $14 million oversubscribed for @50c Thats almost half of what they got from the 15% placement and had each been entitled to more they would have taken a lot more. Really give 75% of placement to a new shareholder and 25% to existing. I sold out and really what have they done Websters - everything turns to not working low margins sold out. Here's their track record sold Tassal shares @ $1.79 in Dec 2010 - major investor exited as a result of them wanting to sell this. Closed Carrots as could not make a profit leased equipment to another party 2011. Then the infamous private placement. at the time Walnuts and Onions the best things to do. Now Onions no good add water , cotton ... Walnuts okay. Really as I understand it they are entering a new operational field and look like they are going to move to a new head office ...

Ag is hard but really I wont be supporting this and if I end up with shares in WBA they will be sold. Yes its double what I sold for now but really the way they act is in my opinion for me as a minority so why be invested. they are on a 20PE really in AG?

Last edited by joewolf: 04/03/15

TAN Price at posting: 56.5¢ Sentiment: None Disclosure: Held
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