Marsc what intrinsic value are you getting from your calcs? I got $2.45 out of Roger Montgomery book...we got that level back in july but it did not hold...
Re cash flows and profits, at agm they stated there is more cost to come out this year and still a bit of revenue growth thanks to new farm... So taking into account that this year there is no debt and hence no interest to pay I guess there is a high chance to repeat $14 mil ocf and 9 mil npat...in my calc sheet i get 10.5 mil net profit for this year with 100mil revenue, and that sheet was quite accurate since 2012... Of course there are uncertainties, The sh*t can always happen but ceo stated in agm that business is travelling well...
I think market is waiting for the confirmation with half yearly report and management lack of communication is keeping investors on the edge too...
But last year agm pack and info was even worst and they delivered great result. But on the other hand of course we should not be guessing and praying for good result.
The one thing that puzzles me is what are they planning to do with that cash flow... 3.5mil in a bank and 7 mil half yearly, lets say they spend 2 mil this half to complete new farm and do a bit of automation, and the same for h2... That is leaving 10 mil free cash flow resulting in $14mil cash in a bank... Ok interest is sh*t so what they are gonna do with 14 mil? 2 options: build another new farm... Or acquire...
FRM Price at posting:
$1.64 Sentiment: Buy Disclosure: Held
(20min delay)