Interesting that FEA and Elders were two of the worst performers...

Interesting that FEA and Elders were two of the worst performers in the agri business in Australia for Y/E 2009. Also interesting is that one particular individual was involved with both companies at directorship level simultaneously. A personal achievement to be proud of I am sure.

Do not expect a mea culpa from this lot. In their proud minds they are an extremely capable board supported by highly talented (and paid) senior management. They did no wrong, it was all bad luck they managed to turn a $43.6m profit in 08 into a $14.1m loss in 09 and simply bad timing caused by the GFC. Not to mention the unwelcome consequence of those failed dubious MIS companies Great Southern and Timbercorp giving other reputable timber investment schemes a bad name.

I am sure the banks, the Tasmanian Government along with shareholders and woodlot investors are not stupid, even if FEA management with their glib excuses and rosy futuristic spin seem to believe they are. Shareholders and woodlot investors should see through this and expect to see some blood for a truly incompetent performance. For a start, golden parachutes representing reward for failure should not be subsidised by what little is left of shareholders funds. Neither should Tasmanian taxpayers alone be expected to cough up for these fat cats especially when so many shareholders, investors and employees are in other states.

I hope for the sake of these stakeholders that the banks throw them another lifeline. If they do then the banks should insist on having some involvement at management level otherwise there will certainly be tears again at the same discussion table a year or so down the track. Successful failure seems entrenched at FEA because of their belief that MIS is a corporate golden goose. Sadly the only gold that rubs off seems to go to advisors and a few others.

I am no longer a shareholder. I got out before it hit 4.5c losing heaps. I hope my bitterness is not showing. Thankfully I do not have any woodlot investments.

The good news for me is the rest of my portfolio is making up for it.