This result was a little disconcerting. Note "Finished goods (at...

This result was a little disconcerting. Note "Finished goods (at lower of cost and net realisable value)" were written down to $10,215,000 from the previous $ 19,792,000. This was described as "non cash inventory adjustments in relation to excess production in combination with adverse harvesting conditions, and net realisable value adjustments due to COVID 19". In effect half the stock was thrown in the bin. (Annual Report Note 10) Something a little astray here methinks.

In the recent PAC Partners Presentation at the end of July, the statement (Slide 10) was: "Business has focused on maintaining retail margin, and rebalancing inventory through cash conversion, and its successful execution is resulting in positive operational cash flows". There doesn't seem to have been too much warning of this inventory crash.....

Net tangible assets for this company were 48c per share in 2019, 28c per share last year and 15c per share now (Page 22 Annual Report). Not a great trend (albeit there is probably hidden value in the Kapua Orchard) so I hope the strategy turns the corner and a profitable niche is found soon.

I have been tempted by this story, but now I'm not so sure. Wait and see.