Really disappointing results. The -24% share price action...

Really disappointing results. The -24% share price action reflects the underlying earnings potential of this company, under this management.

First and foremost, management have massively let the shareholder down. They would have known for months that they were not sending as many shipments from Tasmania and Geelong as they had in their August 2021 outlook in the annual report. They would have known for months that the quality and pricing has been below their expectations. And at no stage was any guidance provided to the market. In fact, on the contrary, they flagged an additional ship would be in 1H22 because it was delayed from 2H21. They guided +20% volume for the year, and have ended up -40% for the half and not a single update. According to the ASX listing rule 3.1 that is meant to be monitored by ASIC, this would constitute a material impact to earnings that a reasonable shareholder would expect to be disclosed. The management and the eight members of the board have failed in their fiduciary responsibility. I have queried both Midway and ASIC on this matter.

So yes, I am absolutely annoyed with management - but please do not think this is me whinging about results not going as I had anticipated. This is a much deeper issue. This is about the transparency and accountability of the company. I am completely fine with being wrong in forecasting the future prices of a commodity; I am fine losing money because of supply chain disruptions that were greater than we expected. I am 100% not fine with being kept in the dark on material matters that affect the company. If it wasn't material, then the shareprice wouldn't have dropped by 24% in a day.

Now turning to the actual results, of course they are terrible. They have removed all guidance, and perhaps rightly so. There is no clarity on how much volume, let alone price / margins, they will ship in the next six, 12 or even 24 months. There clearly are factors beyond their control. But with increasing inventory, operating losses, and negative cash flow - it's also clear to me that management have no idea on how to position themselves for this uncertainty.

The only remaining hope is that they work out a way to sell the assets, and return the value to shareholders. It seems we're always just a one report away from some pension fund in Europe going to buy their plantations at or above fair value (now trading at 55% of book value). I personally have little faith in them resolving this matter, and even if they do they will probably reinvest a fair chunk of the CAPEX into a Graincorp-controlled facility in Geelong. At best one may expect 70c in shareholder return from this, but timing remains uncertain.

I've sold down a third of my position today. My thought that new management would be a positive has evaporated. nd I strongly recommend all other shareholders that feel that Management have failed their fiduciary responsibility also let Midway/ASIC know their position.