If that is a strategy then why are they not just telling us that. Put everything in Mildura for sale and move out. And I tend to agree without an angle they are competing with everyone else but with massive listed overheads. They will never succeed in that space. To supply supermarkets with a branded product you have to show them open book costings with a net margin of less then 5%. So unless they are going to rebuild a distribution team, or try to crack the global market again the strategy of going back to a branded business is just more fluff to keep the board and executives paid.
It would also be good to understand their debt structure, it seems like they are selling assets to pay for negative cashflow and not to reduce their debt. Debt must be 3 times the market cap now, maybe 4.
MRG Price at posting:
28.0¢ Sentiment: Sell Disclosure: Not Held
