An investor like the Harvard University Fund, which put down...

An investor like the Harvard University Fund, which put down forty million, among other serious funds KNOW that a sandalwood company which was planting trees that took fifteen years to reach harvest would but be heavily funded for a long period in the lead up.

The company has utilized the increasing value of its trees in its accounting methods and that has passed various due diligence tests. There are significant buyers of the oil regardless of Galderma at an impressive price point with contracts. FW was in serious talks with a Chinese buyer which was probably why he had not disclosed the contract termination ( there was also no wood to ship) so hopefully the wood market will continue to do well. The bedding down of longer term,more integrated. value added forms of income. has impressed investors looking long term.

The problem with this company is its expenditures need restraint and smartness . Too much useless gloss with marketing, commissions, racing car drivers. If you are going to have a model with major upfront long period costs you cannot afford this, period.The brand is already established and can focus more effectively with less. Deals regarding payments backs reveal NO adequate factoring in of risk scenarios in the business model. Yes work needs to be done here.

The company report will be interesting.
The whole idea of a successful listed sandalwood company maybe untenable for anyone if this company goes down However no doubt some deeper analysis will happen with how to manage the risks and high up front funding costs. Perhaps the company at some point becomes to large for the original Board to manage without new ideas and contacts and accountabilities. For a company that I think has done amazing things so far its a damn shame that it has reached this bottom.