One suspects many potential investors don't know how GNC has taken out crop insurance. In the three very good to excellent seasons Australia has enjoyed, GNC must pay the insurer. Should we have a drought year, the insurer must pay GNC.
ELD under its CEO Mr Mark Allison has instituted an eight point plan that means ELD has diversified, with earnings not as disastrous in drought years as once was the case.
GNC has a 'finger in many handling pies' and also processes oilseeds in Victoria and WA, the latter having also done well of late. Portsmouth reminds us on occasion how Port Kembla's GNC facilities also handle products such as cement, not just grains.
I can't guess which is the better quality business, as each has merit but also as always some negatives.
GNC Price at posting:
$7.85 Sentiment: Hold Disclosure: Held
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