I bought more yesterday and today, to average down my cost basis - time will tell whether I'm a genius or a twit. Surprised it fell so much today though! This stock is a disaster and agree with many of the comments, about unrealistic IPO promises and Management. SP may well go lower in the near term, with all the negative momentum.
I like the idea of Australian organic food long-term and so that's what I'm banking on with this Co. This was my main reasoning when I went long initially and hasn't changed. Weather impacts are to be expected with commodity crops - but yes, this communication obviously hasn't been handled well by Management and the stock has rightfully been punished. I guess another ASX 'please explain' letter is coming MRG's way - but that's little comfort to shareholders - esp. those poor souls who bought into the IPO (not me thankfully - I got in in the low $0.60's).
I still think this is a good Co. - I guess we'll find out if it's a good stock in a few years ey? Management need to focus on the basics now and right the ship - no more flashy purchases/headlines. With time and good execution, investors will return. I will not be buying any more after today though - already spent more than I intended with this dip.
Regarding the Woolies/Coles supply risks - yes I agree, they're present. I had considered these during my initial evaluation. But at the moment, this is all speculation. If they lose a major supply Contract, they'll have to shop around for a replacement and may have to get creative. Would certainly cause a further dip in SP - but loss of a major supply Contract, is a risk that all similar Co's face. GLTA.
MRG Price at posting:
30.0¢ Sentiment: Buy Disclosure: Held
Surprised it fell so much today though! This stock is a disaster and agree with many of the comments, about unrealistic IPO promises and Management. SP may well go lower in the near term, with all the negative momentum.
