Also at roughly the same time a tidal wave of wood matured in New Zealand and was available for export into the same markets. Logs, chips and wood became a cheap commodity with massive oversupply from our area.
Whilst other countries can and do grow sandalwood, few have the plantations or scale that QIN has.
So the model is maybe the same but the stuff growing in the ground is alot more valuable than gum chips and is predicted to be for years to come.
At the end of the day, QIN is in trouble due to incompetence, publicity and the appearance of an american short activist, (why didn't Aus insto's do the same thing earlier?), the product in the ground however continues to grow and the value it contains if anything increases with the uncertainty.
The product that QIN currently has rights/owns, is a strategic goldmine, but they are fighting a tactical battle at the moment, everyone is concentrating on the tactical and maybe not looking at the strategic. If they can get through the tactical the strategic outlook is bright. Its sort of like QIN are the Russians at Stalingrad, win this and the war is won.
QIN Price at posting:
29.5¢ Sentiment: Hold Disclosure: Held
