Tandou is a water rights business, this cotton growing is just their bit on the side until things dry up again. :-)
The water rights they hold are valued at 43 cents a share so for another 10 cents a share we get a big chunk of arable land plus whatever they get from 4000 hectares of irrigated cotton at $494 per bale. I read in the Fin Review that most irrigated country in Australia goes for at least 9 bales per hectare. And on top of that we get 2000 hectares of wheat (the price of which is also going gangbusters) this winter and 6500 hectares of cotton next summer (and cotton for delivery in May 2012 is currently being sold at about $630 a bale).
Congratulations Mike - always handy to make a quid but I reckon you might want to keep an eye on TAN for the next couple of years.
TAN Price at posting:
47.9¢ Sentiment: Hold Disclosure: Held
