Tony Waters: Sell, again. Look, you know this business has poured about half a billion capital over the last four or five years in this business. Even if you look at prospective earnings coming from that, you're going to get a low teen return on capital at best.
We love the thing, in terms of where this business is going, in terms of good nutritional food, but we don't like the maths.
you're looking at things like Synlait and more from a primary production in Costa group. Again, high growth stocks, but much better traction in terms of the returns driven from its capital base. Andrew Mitchell: A buy for us. We own, we've actually taken a bit of stock off the table recently, but you look at where the global peers trade. They trade on big multiples. This is a quality asset that they've got. The market is under appreciating in our view. The kids, China, JV, a milk JV and also the cut through they're getting with cereal. Its got accelerating growth. It needs to grow in to its multiple, but we say it's a buy.
FNP Price at posting:
$5.94 Sentiment: Buy Disclosure: Held
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