What a massive day!, page-24

roughie 12 - thank you for Xmas wishes. I wish you all the best as well. Have a good break. Let's see if your WAM mates decide to enter

The egg retail price competition is tough, like in any other product segment. FRM eggs were the cheapest a year ago, so there is a lot of juggling by retailers. Also Coles and FRM worked together many years ago to develop free range capacity. FRM built new farms to the Coles standard and sign the juicy contract for their Coles branded eggs (private label nationally). Therefore FRM has a solid contract in place not only with Coles but also with McDonalds etc.

Also worth noting, that FRM decreased operating costs by 16% and administration costs by 14% since 2009. Yes the price decrease might affect them a little but they experience a strong demand that is hard to keep up - they should generate nice profit for H1 - I estimate $3 million npat. They have customer service struggle (good thing to have) + new facility roll out is a sign of potential growth.

All in all, I am thrilled by the share price increase but not shocked as it was to come eventually. I enjoy the ride and hope other holders as well. The stock market cash is flowing out from banks & mining disaster and must flow into a safer industry = hence food industry and FRM was left out to the last moment as most undervalued comparing to other food companies.
Let's see what happens in Feb - hope all good and no surprises. Good luck to all holders.