I feel for you guys that bought into the IPO, but if you hold you'll more than likely get your invested money back as the future looks promising.
It's obvious now that the company's forecast in the IPO was overly optimistic, however, in fairness weather can be difficult to predict. Had the usual dry spells transpired the price of cattle wouldn't be so high. Farmers would be offloading stock, not rebuilding herds. Either wet or dry seasons are hard to accurately forecast and don't always materialise. as hoped.
More than likely normal dryer conditions should return.
There was normal dry from
57 to 64 with an El Nina thrown in (draught)
65 to 70
76 to 88
89 to 98 known as the 10-year drought.
01 to 07 when the bright sparks of politics decided to build a desalination plant as opposed to a new dam.
For now, there is a 50% chance of a La Nina happening.
Its worth noting that cattle prices declined from 89 to 97 during the long drought.
Furthermore, they dropped in 05 to 11 during which saw six periods classified as having a La Nina, including one of the strongest La Nina's.
These prices are unlikely to sustain, the industry itself doesn't believe so, especially as this MLA video clip highlights.
