A growers perspective

Hi all, I've been following this stock for a while, and as a grower, the only time I've been concerned about the company is when they made their Galderma announcement.  I honestly think that management made some big mistakes with this announcement - they should have foreseen what the market would do to the SP so they should have explained the situation better, namely:

- The Galderma contract was the first contract they obtained in the pharmaceutical sector and was therefore a significant moment for the company, however the Galderma contract was not for a fixed supply and they had not made any order for over a year;
- Galderma cancelled their contract because they recently purchased the market leader and their main competitor “Proactiv;
- Galderma do have an option to reinstate the contract in 2018 which suggests they have not completely forgone the sandalwood possibilities;
- QIN have recently entered into a 5-year agreement to supply premium Indian sandalwood oil to US-based Young Living, the largest essential oil company in the world. In contrast to the Galderma contract, the contract with Young Living is for a minimum fixed supply;
- In FY16 only 10.3% of total revenues and other income was derived from MIS; and
- Extensive due diligence on Quintis was also completed on behalf of bondholders as part of the company’s bond refinancing in July 2016.

I will note that the above was obtained directly from QIN in response to some questions I posed to them, it's not my research.   I'm certain other posters (Hottuna??) will be able to pick holes in what they've said, and that's fine.  Clearly I hope they survive and don't turn out to be another Great Southern, Forest Enterprises but only time will tell.

None of this is to say the company doesn't have some issues.  I think one of their main issues at the moment is communication - the lack of any follow up announcement by the company to try and placate investors is bewildering.

I don't own shares, but am a grower, so I've selected 'held' as my position