AHF 5.26% 1.8¢ australian dairy nutritionals limited

Please explain the rational behind ‘great price’...easy...

  1. 19 Posts.
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    Please explain the rational behind ‘great price’...easy statement to make with no detail

    Ordinary grazing / mixed farming country in Western Victoria (without the level of capital improvement nor irrigation infrastructure / water license of the Drumborg farm) is currently selling for $6,000 per acre or more (the Drumborg farm sold for just under $6,000 per acre)

    To move the Drumborg farm to nearly complete the organic certification status and then sell the asset prior to defies logic, considering the AHF vertical integration business model is based around producing organic dairy products

    Or did AHF invest in the AHF farm for non financial reasons?....as over the 5 year ownership of the farm it has not given a satisfactory ROI (operating cash return + capital growth) especially when considering the significant capital investment in the Drumborg farm

 
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