Where do you get your word on the street from mate? Keysborough is not a warehouse, how can you store eggs? Keysborough is a processing and grading plant where they make the value added products.
JP Morgan just bought a 5% stake in the company.
If you read the annual report, over 65% of their costs are raw materials of which 50% of this is feed. Wheat crop last season was the biggest on record. Recent rains mean this seasons crop, planting next month will be a bumper crop too. This means the wheat price will tank soon as there is a ton of last seasons grain still being held and there will be nowhere to put the new crop. The $A is predicted to hit over $US .80 which means next seasons wheat will be harder to sell overseas. Again, pressure on prices at home. Not withstanding any unforeseen issues like Avian flu, profits will soar as costs come down.
So no, not desperate investors with lots of money.
FRM Price at posting:
35.0¢ Sentiment: Buy Disclosure: Held
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