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09:13
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Originally posted by Reillyblue
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And I guess I am the one. It is just my opinion and I may be wrong. However this company was pumped up unrealistically and the shareholders have been dealt a poor hand in terms of the consolidation for reasons I outlined. The share price will never go to 3cents again was the call and I was ridiculed for pointing out how ridiculous it was to have the number of shares on offer and that it would. It keeps dropping, this isn't down ramping. It is fact.it is an opportunity but it's not like the eastern seaboard doesn't drink milk or organic milk now. They will have to break into the market with an expensive marketing campaign to get people to swap from their current milk to Paris Creek. So the focus isn't solely milk but again these markets are saturated with competitors who have huge resources As they say themselves it takes time to grow pool of organic milk, can't just be done and will be expensive. And competition is coming with companies like AHF entering the market That capacity is there but where are the cows? it will take time to build the herd up... Ahh look "investing in marketing" they know that they are going to need money. They have 7 million in cash and are Paris creek is turning about 1.7 million in profit but that is not going to go far in terms of marketing and growing pool of organic milk and yogurt and cheese..... So here is more money - they are in the middle of building leadership team - this is going to be costs with salaries etc. Then there is the second point "build the infrastructure necessary" So MORE money. So there isn't expected to be much change this half. That means not much of a revenue increase which also means that they will burn cash. It is interesting that they use the phrase "monitoring and assessing" in reference to maggie beer. It wouldn't surprise me if they sold this off. Explore new opportunites" pretty clear that they are looking to acquire. They will need capital to do this. Or alternatively they will offer shares. If they offer shares expect dilution. Interesting phrase "long-term" shareholders returns. If you search through these posts you will find a discussion between myself and another poster who said in six months watch the share price rocket. I would suggest that this is not going to rocket but rather stay stagnant. this is a business that will take time.
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All these points are fair, I think. Appreciate the counter arguments to the bulls.
