Matter of the fact is, FRM is severely undervalued. Has quite a bit margin of safety. ACCC is a small uncertainty, which makes some ppl nervous, but personally I think there's bigger issues to worry about then ACCC outcome. ACCC issue just has been publicized too much...
I worry about H2 result, worry about the push from WOW , Coles and others to go full free range by 2017 which will force FRM to convert their not so old caged infrastructure to free range which can potentially result in high depreciation amount, worry about margin reduction for H2 etc, etc etc...
But as few people pointed out, given their performance for last 2 years, I believe this company is a turnaround opportunity. They are doing good things all through the business, implementing aggressive cost cutting, there debt reduction is fabulous, which will have direct impact on their cash flow and bottom line, they reduced their biological inventory, ratio between receivable-payable massively improved and improving - and FRM is a 14 mill CAP!! This should at least be 24 mill, with a very conservative PE of 8 with just 3.1 FY NPAT ( and this is before looking at the OP cash flow and cash on hand)... ... BUY BUY BUY
... BUY BUY BUY
