Chatter on Livewire

James Marlay: Freedom Foods. We're all into health and nutrition these days. This is one that's that's listed on the ASX, looking to go offshore. A bunch of different platforms. They're looking to leverage. Buy, hold or sell?

Rachel Cole: It's a buy for us. We like the business. We think that, they've been investing for quite a long time now in capital and that'll start to pay off looking forward over the next few years, especially with the increasing production of a particular high value product called lactoferrin. So that should drive higher return on capital over time. And you look on the register, we've got, one of Australia's most successful dairy farming families buying stock in the raise at higher levels than where we are now. So we think it represents good value here.

James Marlay: Okay, great. Josh, are you into your lactoferrin? Buy, hold or sell?

Josh Clark: I'm not a big consumer of lactoferrin. But I would be a buyer of Freedom Foods. I mean, the key thesis is very similar. It's raised a lot of capital in the past. I think the market's lost patience with the earnings constantly being on the horizon, and they haven't quite got there just yet. But the last thing you want to do is lose patience after all the capital's gone in, and you're close to this earnings growth trajectory that they've got right in front of them now. So, free cash flow should improve a lot for the business, and that's the key thinking behind the buying Freedom Foods