FMP Day

Thursday is 2017 FMP announcement day.

The unit price is connected to the distributions received which are connected to the FMP.

Saputo's WCB has already announced their price of $4.80. Will MGC do better?

Since the April profit/FMP downgrade, the AUD has fallen significantly, GDT sales are up, the domestic market has been stimulated courtesy of media coverage and there are indications of improved export sales.

Conversely respected business journo John Durie of The Australian makes a comment last week thus:
"But, right now, the behemoth (MGC) is also the irrational player in the market because it has excess stock that it is trying to sell at any price. This includes products ranging from milk powder to UHT to cream cheese landing cheaply in Japan.
The co-op is in the process of trying to find a new boss and any writedowns may well await that appointment."

Where is his reference for making this statement? Who is he quoting? Is he making this stuff up?

Chairman Darcy mentioned the WMP powder problem in April. He alluded to the excess mentioning its long life nature. Prices may be down recently but there are indications sales are robust. I don't see any writedowns although incoming CEO's are notorious for wiping the slate clean to start their tenure from as low a base as possible.

$1.20 is my lowest valuation given exposed sales and forecasting data. I'm holding into FMP day.