I thought, seeing as my previous investment here is worthless I...

I thought, seeing as my previous investment here is worthless I would see what PFT was offering.

They have raised @20c with an estimate market cap of roughly 9mil and have posted the following NPAT results.

FY17 - $57,000
FY18 - $(500,000)
FY19 - $(322,000)

So by no means a profit machine. FY19 did include a write down of ($344,000) so NPAT prior to that of just $11,843. Giving us a crude PE of roughly 800, assuming and SP of 20c. Now my understanding is that they are not a new tech business that has huge growth potential and can have a large PE, but a food production company in a highly competitive industry with thin margins, and limited industry edge.

Similar companies in the pate space according to the prospectus are Maggie Beer and Normandie Foods, I cannot see much on Normandie Foods, however Maggie Beer is owned by the Longtable group that has lost nearly 12mil in the first half of FY20. So I am not sure where or if there is much growth here, that is if was pate can become profitable first.

Woodbridge has a few competitors, however it is noted in the prospectus that due to its high quality niche status it demands a 'super - premium' price. 60% of products are exported and the main competition comes from Norway and the UK. Granted with the COVID-19 effects in the UK and Europe being greater than in Aus currently there may be some benefit, however it looks as if most of the sales are to Asian buyers. Who knows what implementations there may be on imports to Asia over the coming weeks/months and with the collapse of the economy occurring everywhere, how much of a market is there for a 'super-premium' smoked salmon over the coming months?

Besides pate and smoked fish there does not seem to be much else that they do.

I'm curious how many supply flights there are out of Tassie, especially with so many regular flights cancelled as states lock down. What happens when they lock down the state and close off bass strait, I don't think it is looking too good, but that is just one old guys opinion.

There does not seem to be many that visit this forum, but with nothing better to do during isolation I thought it was worth a quick look into what COK/BCL was becoming.

Anyone else have opinions?


Regards
J