Ann: Becoming a substantial holder from WBC, page-3

I think it is a good point you raise regarding the substantial holders.

Although this isn't based on much more than a feeling, but I get a sense that institutional investors might start showing more interest in Select this year than they have for a while.

Counter-intuitively, that situation with Indian sandalwood grower Quintis (outlined in this ABC report a couple of days back) might actually work in Select's favour. Short sellers tend to flock together, and given that there is so much negativity regarding Quintis you can be sure they are going to be gravitating in that direction.

Another reason I say this, is that as I understand one of the reasons behind the shorting of Quintis is due to a suggestion that one of the major Chinese customers of Quintis is a bit dodgy.

I don't know how much truth is behind this allegations, but it does highlight that the cautious 'slow and steady' approach that Select has adopted with respect to China is sensible and warranted.

Although I have been keeping an eye on that situation in California, based on what I have been reading there still remains a great deal of uncertainty with respect to the impact of the recent adverse weather on the eventual 2017 Californian crop.

Blue Diamond released a newsletter a couple of days ago in which the CEO sums up the situation:

...It is far too early to develop any estimate for the 2017 crop. Although strengthening, market prices indicate reduced expectations for a barn buster crop. We pray that almonds will continue to be as resilient as the farmers that grow them.

Hopefully we will get some more information on this over the next week or two.