Ann: Results of Meeting-FRM.AX, page-33

Thanks Rushin.
It certainly sounds from this forum that a lot of hot money has flooded into the stock (due to the momentum in the share price) and thats flowing out now.

It is interesting that they are continuing to make these upgrades to bring down costs further. My investment thesis is that most of the gains have been made and I am projecting no more margin expansion (after 6 years of continual margin expansion) however I am happy to be wrong and see things get even better.

Stripping out the investment for the new farm ($6.42m) FRM had FCF of $13.687m in 2016. That means if we never increase margins and can just maintain existing revenue and margins we are sitting on a normalised EV/FCF yield of 15.62% at a SP of $1.65. Now I hear the noise about other farms increasing production and egg over-supply but in my experience people place too much emphasis on trying to speculate about what might or might no occur and less emphasis on the fundamentals of what we know and how our company is performing.