WLD

1.54%

6.4¢ wellard limited

Ann: Wellard Update-WLD.AX, page-213

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Nightmarez3k

6,205 Posts.

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20/06/16

23:30

Post #: 18078794
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Originally posted by tbecker101 ↑

basically wld has no pricing power.Its a price taker not a price maker. The economic rule of thumb is to buy price making businesses. Also management has no credibility. There is a huge discount for company's where investor cannot trust management numbers or anything they say.

WLD doesnt produce anything. It buys from cattle producers and then on-sells it to Asia or Middle east. It books some freight or trading margin. Its a middle man. Dick smith was also a middle man. These are liable to have big profit cuts as one end of the transaction doesnt go well. Eg too high product cost, or cant sell for enough profit at other end.

Vessel breakdown. Fire on Vessel. Weather. Port. Logistics. Animal welfare e.g. vietnam. Disease e.g. japan. all issues have occurred in past 6-18 months and will continue to re-occur.

Also WLD is one of the most capital intensive businesses around.Its ships are subject to sudden malfunctions which occurred 2 weeks after listing. This can happen again to any ship. Its prospectus stated those 2 ships in question had a lot of maintenance work done in the past year, which would improve reliability. That was so far from the real truth. One cannot trust management.

Its china business will be loss making for a few years( if they get finance), as WLD has to purchase the high cost of cattle through their JV and sell it. sounds complicated. Theres a lot of further liabilities/ capex involved. Their JV will be making a loss and nullify any shipping profit. The debt position will be untenable. Also china have strict health protocols. they have to ship it from Southern BTV zones. There isnt enough cattle in the South BTV zones to justify this business commercially. In short, WLD's china business is not proven viable yet

always buy stocks with control over margins. e.g. atleast your A2M, or BAL, BKL, at least have control over products and the prices/margins they get. I happily admit i called A2M wrong, but WLD has no control of margin, so is a different case.

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I've put this in the bottom draw wish I was a bit tighter with stop loss on this one.

But $23M might be delivered which will allow them to reduce debt.

Atm they need to just fix the business and focus.

Do they have $15M pending from sister company?

Dividend should be thrown out. Small buyback would support SP and be highly accretive atm.

Last edited by Nightmarez3k: 20/06/16

WLD Price at posting: 39.0¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 6.4¢		Change -0.001(1.54%)		Mkt cap ! $34.00M

Open	High	Low	Value	Volume
6.4¢	6.4¢	6.4¢	$3.226K	50.4K

Buyers (Bids)

No.	Vol.	Price($)
1	83812	6.4¢

Sellers (Offers)

Price($)	Vol.	No.
6.7¢	4500	1

View Market Depth

No.	Vol.	Price($)
1	83812	0.064
1	100000	0.063
2	111000	0.061
1	8400	0.060
1	33366	0.030

Price($)	Vol.	No.
0.069	13018	2
0.070	230000	2
0.072	26661	1
0.073	20000	1
0.075	155000	2

Last trade - 10.34am 11/10/2024 (20 minute delay)

WLD (ASX) Chart

Ann: Wellard Update-WLD.AX, page-213

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Ann: Wellard Update-WLD.AX, page-213

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