GNC graincorp limited

0.26%

$7.80

GNC General Discussion, page-260

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Giovanni33

2,868 Posts.

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22/08/23

19:29

Post #: 69486461
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Originally posted by Hopeful9: ↑

I sold all my holding recently with the stock since then having declined. I have often traded in and out of this stock. I perceived I would obtain greater returns elsewhere, but as always, DYOR as I am fallible.

GNC should deliver an excellent result for FY 23 with a very good dividend but given grumpy 'Mr Market' looks forward not backwards, he may not be so sanguine.

'HC' contributor Portsmouth has suggested at times that GNC is undervalued by 10 per cent (or perhaps more).

GNC is busy at present given three very good to excellent east coast winter harvests. The exportable surplus has been significant.

However the 2024 winter harvest (plus yield per hectare) may be poor/middling in northwest NSW, as fewer hectares have been planted and rains haven't been great. I stress I am in Melbourne so you may well ask 'what would he know?'

The NSW Riverina seems better as does Victoria. Southwest Queensland is usually the smallest winter harvest tonnage handled by GNC: I haven't looked at its weather patterns.

GNC probably has a finger in the pie somewhere for about two-thirds of Oz's east coast harvest. To my mind, this is impressive given that there's competition from AWB-Cargills, Emerald Grain, Riordan Grain Services and others.

Bear in mind GNC doesn't just store grain at receival points but facilitates rail and road transport (emphasis on rail) to port storages and most importantly arranges bulk ships to carry much needed stocks to foreign nations.

GNC also handles commodities such as cement at for instance its Port Kembla Inner Harbour (NSW) complex.

While I wasn't then a SH, GNC at the time of the split with UMG was regarded as the 'poor cousin' apparently, but GNC became the star of the show. GrainCorp has about an eight per cent interest retained in UMG so when the latter's takeover is complete (at a price of A$5.00 a share), GNC will benefit.

GNC has a crop insurance policy in place. Some have said this is not an optimal arrangement: others seem quite happy with it even though in 'good' years, GNC has to pay the insurer. Look back at the 'HC' GNC discussion and you'll find full details of the policy.

Management looks to have done a competent job diversifying away from unreliable mainland China.

Read back in these threads as there's also discussion about how GNC can also be a trader. It was a point of contention between 'HC' contributors more knowledgeable than myself.

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Thanks for the post. I'm still catching up but at a glance I actually really like the idea of the company producing biofuel. Australia is very energy insecure and there is a substantial national interest in being able to produce diesel locally.

I still need to research more about this, but on face value I find it interesting.

How do you find global wheat/grain prices affect the company? Does it act as a lever on this or is it fairly decoupled?

Last edited by Giovanni33: 22/08/23

GNC Price at posting: $7.91 Sentiment: None Disclosure: Not Held
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(20min delay)
Last $7.80		Change 0.020(0.26%)		Mkt cap ! $1.736B

Open	High	Low	Value	Volume
$7.83	$7.86	$7.73	$1.587M	203.6K

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No.	Vol.	Price($)
9	2072	$7.80

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Price($)	Vol.	No.
$7.81	1326	12

View Market Depth

No.	Vol.	Price($)
3	3621	7.800
8	2403	7.790
7	2573	7.780
9	10807	7.770
9	16438	7.760

Price($)	Vol.	No.
7.810	5588	20
7.820	8243	25
7.830	8334	19
7.840	16620	12
7.850	6585	11

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GNC General Discussion, page-260

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GNC General Discussion, page-260

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