Bell Potters put out a note about a month ago with a target price of $1.82 (previously $2.56).
Revised lower on half a year this year on egg oversupply. However since then there has been some bird flu in the USA so places like Japan and South Korea are looking to import eggs from other countries and our big 4 egg producers have been up in North Asia trying to secure new contracts.
Back to FRM. They have paid off their debt and Bells expect EPS to be 14.7c per share to June 2017 and 15.9c per share to June 2018.
I have seen another report predicting June 2018 EPS of up to 18c per share.
So what are they going to do with all this cashflow???
That is the question?
Nevetheless at $1.25 that equates to a potential (in theory) yield if they paid it out of 11.8% fully franked for June 2017 or 12.7% in June 2018.
So just theorising here.
Do your own analysis and research.
I have and bought some FRM.
FRM Price at posting:
$1.25 Sentiment: Buy Disclosure: Held
