@fritler91 - Interesting comment. Also hearing similar rumours about incentives to use Graincorp port facilities rather than the smaller operators in ports that are popping up, and actually doing quite well.
Graincorp is missing the boat on marketing their productivity at Port though, in which the large silo handling facility allows for a constant throughput, rather than the 'just in time' operators.
Its a tough one to call on an economic value, If venue A is cheaper to export than Venue B then its obvious which one you go for, but its all in the small detail, if venue B is 50% quicker than venue A than it gets murky.
Then if Venue A has the capacity to blend grades just to meet specs, whilst venue B does not, then the economic maths become very complex indeed.
....and this is only the simple part, i wont bore anyone about all the other logistic costs and rewards, they are numerous.
The small port operators have MADE graincorp lift their game, no longer a monopoly on the East and South East coast.
And do not forget, there is significant value in the Graincorp assets.
-- Now a prediction ---- a few years back ADM made an offer for Graincorp at around $10.20 per share -it was knocked back by the Government as not being in the national interest. This was at the time of the last drought, or shortly before. Its a different landscape now, the are 'unsubstantiated' whispers of interest from the Aussies that do the red-brown dirt stuff, and an operator in Canada, also USA that are looking.
At present value Graincorp is cheap, given the assets and infrastructure. W.A.T.C.H this space
GNC Price at posting:
$7.05 Sentiment: Buy Disclosure: Held
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