This thread is resemblant of a nonsensical discussion.
If I did not personally know what it felt like to watch a stock I had a substantial sum invested in plummet, then I'd even say humorous.
I'm sure we all have one, for me, it was GDO Gold One...Their quarterly was this glowing report, which indicated a further anticipated 20% increase in production during the following quarter.
CBA where buying up too, it seemed a no brainer, the market had clearly not factored in the following years increase in production as flagged by the company.
What I was unano-brainer this time, was that a drilling program was soon to take place, intended to sure up resources. The fill in drill program failed to deliver, and the stock was smashed almost overnight, and never recovered.
Not unlike resource stocks where profits fluctuate when drill programs fail or when the underlying global price of the commodity falls. soft commodities will too, they carry a fair element of risk.
They will rise and fall when the supply of the commodity is high or low, often affected by weather conditions.
Currently, the cattle supply in Aus is low, the demand is high, and stocks like Wellard are vulnerable to such fluctuations.
A class action wouldn't stand a chance, it's the nature of ag stocks....continuously impacted by outside forces that businesses in this sector have no control over....
The mechanical issues were unforeseeable, their disclosed was poor, unprofessional and as Panda suggested they could inform the market monthly given that final payments are variable shipment to shipment, subject to unloading not loading and weight on arrival.
There is not one stock listed that is not infallible, not immune to the possibility that another company does what they do better, or finds a completely new way of doing the same thing that's cost effective, more appealing, convenient, efficient or even enjoyable.
Some of the best looking business models fail or become obsolete, or mismanaged.
WLD or more specifically Mauro, has to some degree, made some questionable personal decisions, however, his strategy to grow this business over the past 25 years has worked.
When stocks fall in price it sucks, but unless your new to managing your own portfolio everyone has had a lemon or two...that's why you diversify and use stops if you are a trader.
As musky45 states, the time frame of 6 months to classify WLD as a failure is by far to premature.
Swallow some concrete if your trading it, you've not followed a plan.
When will people begin to own their own failures as opposed to blaming others? Sue at the drop of a hat?
There is nothing preventing this stock from a full recovery and much more over the next 2 to 3 years if cattle prices remain high.
If they drop and remain near longer term trends then the share price would rise quite dramatically in a short period of time, given the fact that profits would rise substantially.
This announcement is past history already. As Panda and Ed have stated, boats are at work, company sourcing more profitable margins by fortunately being able to source other suppliers.
The conclusion of 2017 might be a considerable turnaround even with lower margins. lower AUD, lower Fuel costs will partially offset the higher prices too.
Learn from your mistakes...invest in something safer like IVC nothing is as sure as death
