Ann: Trading Halt, page-129

I don’t think I’ve commented in a KTD thread before. Thought I’d jump in here early today to see what the thoughts were on the Trading Halt – but didn’t get a chance to read through the whole thread till now. I was interested (if not a bit surprised) reading how negatively some people view this CR (and the company in general). I’ve been a holder since float and honestly view them in a fairly positive light. Sure – you could argue that they have diversified the business away from powdered milk, have taken a bit long with things, etc but from my POV I reckon it’s looking good for the long term. In fact I was telling a mate of mine just the other day how they were starting to kick some goals. The new plant is setup and ready to churn out some decent volume, and despite not being exactly what we signed up for the Superfoods stuff seems to be gaining traction. And any health-related food is a decent market to be in these days. The Chinese milk powder deals have been a nice start, with more to come. Personally, I think we have a nice foundation for the future, and for the long-term I am bullish. And yes, I understand some peoples’ frustrations since I think they are coming from a standpoint of “I invested in a dairy company” and “production should be ramping up no matter what”, but I don’t see it as a worry. Nothing’s perfect – that’s life.

As for the CR – it can be viewed as a decent entry-point, or as a devaluation of current holdings. My view is the former though I understand plenty here see it as the latter. I’d say the purchase of AusConfec is very complimentary. They’re buying the manufacturing equipment and getting the protein bar business and contracts with Woolies/Coles thrown in. The confectionary means nothing. They’ll probably sell that to the owners of Darrell Lea for $1. All IMHO of course…