Ann: Senior Executive Restructure, page-19

With the previous performance of the company and management I think that you are right to advise caution friendlydwarves. They still need to prove that they can operate without constant F*ck ups given thats been the state of play since listing but in my view the changes in the last few weeks warrant slightly more optimism than say a month or two ago. Prior to listing with cattle prices about where they are now they were able to generate 23m profit from about the same amount of revenue that they generated this FY. Things have changed since then however but it does mean that with the trajectory of the market, we could see this company return to profitability in the short to medium term.

From a valuation perspective they have net assets of around $130 million so I think purchasing at 17c (100m mcap) which is a 30% discount to NTA is not unreasonable from a pure book valuation perspective. I guess the thing that is difficult to value is how much discount to apply due to past performance. I can definitely see your point of view from that perspective and its good to ensure we dont have rose tinted glasses on but as I said I think there is reasons to be a little bit more optimistic than before.