I dont see much carryover: Read the actual financial report :...

I dont see much carryover: Read the actual financial report :

"Inventory - Current Year Almond Crop The current year almond crop is classified as a biological asset and valued in accordance with AASB 141 "Agriculture". In applying this standard, the consolidated entity has made various assumptions at the interim balance date as the current year almond crop is only partially through the growing season and the actual crop yield will not be known until it is completely processed and sold. The assumptions are the estimated average almond selling price at the point of harvest of $9.00 per kg and almond yield based on a crop estimate for Company Orchards of 13,700 metric tonnes."

Thus when they do their results they have last years value and that had different assumptions they now take 13700 x A$9.00 and get a value of $123,300 that gives rise to the loss on valuation as I see it and the value of the biological asset in their books. I dont see any real carry-over as such.

Personally I think its time management realised that distributions are about sustainable dividends not just - we decided to pay x. They came across like they have no real policy it was a good year - here you are. They also didnt have a clear understanding of a metric for gearing so didnt in their future plans indicate that they knew what their gearing would essentially be in say 2018 or 2020.

I think that today investment houses want the business model on hand and you need to be able to display that the process is sustainable. Look at BHP - progressive ...

I think these guys would have got a better response if they said that the dividend was going to be flat and that the excess cash would be used for investment. I think paying an extra $5 million out and having to start paying tax as well they leave one thinking that after this years dividend its all dependent upon each years income - no smoothing whatsoever.

I think its worth more but to not have a conservative approach to dividends often has a negative effect. valuations are multiples of future expectations and the current dividend is not one of the future events its just a sugar hit unless it looks conservative and sustainable.