Ann: Notice of Annual General Meeting, page-10

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T.E.P.

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07/08/22

12:18

Post #: 62969331
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Originally posted by T.E.P.: ↑

AFR: ‘The food sector in Australia is hopelessly, grossly undervalued’ (Link).
He points to Canadian seafood firm Cooke’s attempt to reel in Tasmanian salmon farmer Tassal, Laguna Bay’s takeover of oyster producer Angel Seafood, Brazilian meat-processing giant JBS’s buyout of Huon Aquaculture and iron ore billionaire Andrew Forrest’s increased stake in Bega Cheese.
“The food sector in Australia is hopelessly, grossly undervalued,” he says. “When assets have been smashed and thrown out, that’s when we look at them.”
Mr Iafrate is keeping his watchful eye on the dairy industry as milk prices rise. He’s no stranger to the beverage industry, having dabbled in takeover discussions between Coca-Cola Amatil and water company Palm Springs in the mid-2000s.
“The farm gate prices are going up, so the farmers are doing the best,” he says.
“The milk processors are losing, but like the sunsets in the west, times changing, circles happen. When assets are at their ugliest, that’s when we are at our happiest.”
“Once the stock price was hammered, these businesses lost the capacity to raise capital. Our fund was set up to identify takeover and M&A in this space...it has been Nirvana.”
Food is its next target, taking a substantial shareholding in dairy and poultry manufacturer and retailer TasFoods alongside millionaire businesswoman Jan Cameron.
The micro-cap fund, “the pure genesis, heart and soul of Armytage”, is invitation only with around $18 million under management. They hope to get to $75 million, above which capacity would become an issue. MCAF runs with just seven stocks at a time and tends to take 10-15 per cent holdings in companies with a market cap less than $70 million.

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Worth watching this piece by Mr Iafrate on TasFoods. Plenty of parallels to Halo in terms of the F&B industry cycle, M&A, scale, and the pivot to profitability: https://*.com.au/the-insider-meet-the-fund-manager-lee-iafrate-2/
HLF Price at posting: 5.3¢ Sentiment: Buy Disclosure: Held
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Ann: Notice of Annual General Meeting, page-10

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