BPAM vs BFC, page-3

I think you may struggle with getting a response as the Financial Review announced, it seems quite inappropriate, that the chairman of Bestons also is the major owner of the management company receiving an income based on a Value of Bestons which seems four times over valued, thus giving him 4 times the income. Not something Bestons would like to explain to its shareholders.

That income is being received despite the management of the company being shot, with losses doubling year in year out to now at $26 million loss this year from $13 million last year and debt going from 20 million to 40 million.

The company has more or less announced it is concentrating on Australia and is struggling to get Milk from the dairies as it also announced this, as it is unfortunately in direct competition with the major players in the dairy industry whom not have only far more financial clout but are a safer bet for dairies to sell to knowing they will get paid.

Major rethink when Mr Sexton originally sold the company to the market saying China is where they need to be, as most would be aware Australia is extremely price driven with the major players having a monopoly on the market. You will not get a major turnaround competing in Aus, China will bring you the pot of gold if you can break into it, but that seems a pipe dream now

Bestons only hope is for its bankers to continue to support them but for debts to go from $0 to $20 million now to $40 Million, over a three year period these banks maybe getting quite nervous, The other solution is to issue more shares I suppose and dilute the share value which affects those of us with an investment

Not an ideal position to be in if you are honest