Don't get me started on PFG formerly Scorpio.
It was a failing company and as per BPAMs model to buy cheap assets, they are cheap for a reason.
Plenty of former employees are happy to tell you plenty about goings on, after they leave, so this information comes from a reliable source, living in Mount Gambier I get to speak to lots associated with Bestons, but if you read the media articles you will discover this anyway. In 4 years I think Bestons have been through 4 CFO's.
Scorpio was purchased to help Bestons push into China with buying a failing meat company then growing it to gain asset value or maybe to gain asset value without even growing it. Very typical BPAM theory, which isn't obviously working, buying failing businesses can be very dangerous as is proven. They were failing for a reason.
The big problem with that, is Scorpio/PFG was a secondary meat manufacturer, which meant it could not actually sell into china, you will read articles about that. BPAM obviously didn't do their due diligence (AGAIN) and this was discovered after the purchase, which left them holding the baby, but it gets worse.
In 2017 when the buy out was complete, with Bestons being only a minor shareholder the owner of Scorpio/PFG was in a desperate financial position and broke some major governance issues, So in Bestons wisdom they bought out the company totally to hide the issue, although Scorpio was on its knees. It really should have reported it to @asic and moved on. I believe again @ASICInvestigati@asic should have a close look at this situation and what occurred as publicly listed companies have a responsibility to report this behaviour although it was not Bestons doing. Or maybe Bestons should have advised its shareholders of the diabolical position Scorpio was in, and not sell it off with a good news spin story which everyone is getting sick of.
But if it got out, it could have had a major affect on Bestons share price and Scorpio/PFG so it was better to raise the cash to buy it out, I don't believe a return on equity will ever be realised for the amount invested into Scorpio/PFG , it seems a massive money pit and would have had millions invested, first loss best loss on that white elephant.
Would be very interesting to see Scorpios/PFG asset value according to BPAM for a company losing $$$ every year, a starting point would be what ever they purchased the major share of Scorpio for, that is real value, not some BPAM Valuation that has already proven to have discrepancies as per Fergusons over valuation.
Maybe @blackspot12 or @eddiev you should send Darren Flew an email asking for BPAMS $200 Million worth of Valuations as I think he is sick of me. Or anyone else that is interested in the truth .
This may help
[email protected]
The farms are around 4000 acres in Mount Gambier at the moment these farms should bring in total around $35 Million going on current prices, which is at an all time high because of Thomas Foods aggressive purchasing. I wonder what BPAM have them at?
The Factory they bought for $4 million would also be interesting to see BPAMS value on it, as its still failing by producing losses and although millions have been spent on it doesn't mean the asset goes up by the same value. As we know improvements never equate to a return in Asset Value especially on commercial assets.
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