Much ado about the PSM of MG at the ADII and also responsibility...

Much ado about the PSM of MG at the ADII and also responsibility of advice for farmers budget planning.

Whilst the GDT has recovered somewhat from its lows, the large processors are still dealing with depressed prices for powders.

In this context, it was a responsible 2018 opening FMP by MG. Not what the farmers wanted to hear but an opening gambit framed to draw out the opposition. Management has trimmed the fat and the new CEO, slashed and burned to build ammunition for the war. I'd be surprised if they didn't have something up their sleeve.

An incumbent director now picks up a lazy $50,000 odd of units at fire sale prices. What does he know? More than us, I imagine.

I'm expecting the 2018 FMP to be reviewed before June 30.

Can MG survive? What will be the catalyst for its winding up? Do they have large debt to be refinanced in the near future that the financier will refuse? I doubt it. Fonterra's gearing is worse and they're pedal to the metal. MG's stock equates to their debt. They have 10 processors at 1 billion book value but perhaps 600 million realistical market value.

The MG Unit Trust market value of 130 million implying a market cap for the whole of MG at less that 400 million.

These units are at fire sale value. I think they should be 90c minimum. If management don't reconsider their 2018 opening FMP, I may have to reconsider my investment but at the moment MGC is a nice buy IMHO.