Ann: HPP COMPLETES FURTHER CO-INVESTMENT IN LAVVA WITH S2G, page-2

HPP's board says they're going to do something by a certain date and they deliver. For example, the sale of the ginger division and now this substantial transaction with LAVVA. Both delivered on time, as per the board's timetable. They don't mess around. The capital raising was also well done, and the price set just right imo. I'm impressed.

I've been a tad lucky with HPP. My entry (via BUG in the first half of last year) was a bit of an act of faith. Firstly, that an aussie company should be able to make money from macadamias and ginger. Secondly, that the chart, while showing some potential, would go on with the job, ie. confirm a reversal of the prevailing trend, which at that point was still clearly down.

Since then, the company has been transformed. Macadamias plus Lavva makes a lot more sense to me than macadamias and ginger. There are synergies. Plus the board has outlined a clear and coherent strategy and that's perhaps something that the old BUG (pre-macadamias and LAVVA) seemed to lack (I could be wrong about that though). However, BUG's entry into macadamias was a visionary move and, in hindsight, the turning point and a sign of the company heading off in a new direction.

As for the chart, it's subsequently powered through some quite tough resistance, and it's now in considerably better shape than when I bought in. In particular, the trend has now clearly reversed to the topside, imo.