AHF in limbo., page-54

@jason123321

I could ring either Adrian or Michael but there would be no purpose as I would get the official line no matter how up close and friendly it may be and I have no intention of doing so. Also I would expect nothing less from them other than restating that due diligence and finalising a settlement is still work-in-progress and that they are working through the fine detail including supplier agreements and some matters relating to the processing plant lease as stated in their last announcement. If you also go back in history on their announcements it was also indicated that the buyer (AHF) had some flexibility of settlement in their favour and I suspect they are using that to the fullest extent.

It was also called out in here some time ago that the state of the Camperdown facility is less than ideal as a result of some issues with two unrelated parties (owners and CDI) and this is a risk that AHF will have to managed and are probably doing so. A settlement sometime after March 31st is ideal, if however the CDC acquisition doesn't proceed there are still positive avenues for AHF, in fact it opens up other choices including moving milk supply to CDC at a greater milk price than they currently get and secondly it puts a decent sum of cash in their piggy bank for other opportunities. Don't forget they have already posted a maiden profit for the last half year.

All that is above the line, now below the line...

In my limited view the current trading activity makes a mess of looking at any stats and if you looked beyond charts (they would say a classic pump and dump scenario) you will see some basic indicators don't paint a positive picture unless you have a contrarian view. Volume spiked a little, MACD is way down (the shorter the frequency the worse it looks), RSI is way down and Bollinger Bands have opened out again. The buy / sell spread was always weighted towards sellers for the last few weeks given the price has come off its all time high. So anyone in for a short sprint will have to convert or exit at a loss whilst the rest may need to sit it out unless they get restless. However someone is hoovering up those shares that others are ejecting and it will be interesting to see if an SSN appears in a week or so.

For now, good buying in my view and no need to ring the Directors.