DYOR, previously long, no longer heldPart of the smoking gun...

DYOR, previously long, no longer held

Part of the smoking gun would be the full release of the Bucephalus report which unfortunately is only in the possession of the AFR, RFM and Business News Australia

https://www.businessnewsaus.com.au/articles/bucephalus-research-alleges-rural-funds-a--ponzi-scheme-that-could-collapse-at-any-time-.html

"The report claims RFF has a fair value of $1.20 per share based on a "generous appraisal" of accounting profits, or $0.73 based on reported cash flow."

The latest RFF accounts have base NAV at $1.57 and water rights adjusted NAV at $1.80 so the current price of $1.65 is fair

Before the Bonitas report, RFF was $2.30 with a comparatively low 4% yield and large goodwill premium

The value of RFF is clearly not zero but the goodwill has now evaporated

The directors should reconsider the detail provided to shareholders on asset valuation and the relationships between RFM and RFF at both the management and lessee/lessor levels

Final point of interest, RFM Poultry is the 2nd largest lessee for RFF with 13.7% of FY20 revenues and was the only negative in the recent RFF accounts

Check the price and recent announcements on the NSX for RFMP because if you are an RFF unit holder, the Q&A sections are revealing

Good luck to all