Hi,I was reading the SMH this morning:"Australia faces new surge...

Hi,

I was reading the SMH this morning:

"Australia faces new surge from Chinese rivers of cash January 13, 2010

The rivers of Chinese cash that began flowing into Australian mining assets two years ago are spilling into the wider economy, backed by renewed encouragement from Beijing.

Yesterday, China's Bright Food food and beverage maker revealed it was in discussions to pay $1.5 billion for Australia's main sugar refiner, CSR"

This brings me back to a post I made last year "east vs west". If TFS is going to be THE global supplier of sustainable indian sandalwood / products (and other products)and a fully integrated soil to oil supplier....then you must become by default a high probability target for takeover by West (perfume houses / pharamaceutical industry), middle earth (Middle east / Africa investors / industry) and east (Asia interest).

In my view Indian Sandalwood remains a rare commodity / sought after further processed product play that is supported by a real and ever growing demand supply imbalance (culture / religious / technical / pharmaceutical demand) v.s dimished natural plantation supply. Don't forget the huge barriers to entry, time delays to plangt / harvest and lack of real substitutes.

So in my opinion TFC is not only a great company to own because of its rapidly developing monopoly supply chain characteristics ($$$ - smiling shareholders), but it also carries the sweet smell of a target waiting for takeover cross hairs to find it. Particularly given its heavily undervalued status at present on the ASX.

One day Chinese officials / executives / Middle East investors or global industry needing to secure supply will wake up and make a bid....

Mark my words....this will happen..its just a matter of who works out the opportunity first. My pick - the Chinese (smart business / government)- supported by a growing middle class with a cultural history of sandalwood product use.

Wiseowl / Ordminett / Bell Potter / JP Morgan / Foresight Securities et al should also be considereding this possibility - perhaps they are?

SD