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01/03/24
09:44
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Originally posted by Against_:
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I'd be interested to hear a compelling bull case for this stock that is actually going to move the needle on this one. Yes, they have well-rated products, a growing number of distribution points and a seemingly well-credentialed management team - BUT - the cost base is too simply too high. The sale of the farm does little to address this - selling the farm for $10m while paying rent at 10% pa. is just an additional expensive line of credit that simply adds to ongoing costs. Another cap raise this year wouldn't be surprising, adding to the massive recent dilution. There was a comment in the BDO Auditor's report that the company was exploring offloading the Campbellfield - is this still in play? I wouldn't mind knowing a bit more about the expected ROI on the $100k sponsorship of Grove Racing because paired with the farm sale, it seems like a bit of a cheeky piss-take
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I take that back - don't sell the Campbellfield packaging op, maybe look at offloading the booze arm lolContract Packaging revenue up 55% Branded Products down 10%