MarsC I must confess to buying back into FRM recently. Buying...

MarsC I must confess to buying back into FRM recently. Buying stock as such as discount to NTA is just too tempting for me at a time when the cycle seems to have turned. I've spoken to management about the ROE through the cycle and im not sure I agree that the industry wont generate free cash flow for investors. Looking at the performance of the business over a 10 year period the business did roughly double their NTA over the period and I do feel like I am buying the classic snow ski resort in summer.

Regarding margin of safety we could always turn activist shareholders and liquidate the company for their assets if profitability doesn't return but I suspect it wont come to that. The most likely outcome in my mind is that feed prices normalise and the oversupply reduces, profitability increases and the stock trades back closer to the NTA - (78c - which is still more than twice the current share price).