A partial extract from 'The Australian' (Bridget Carter,...

A partial extract from 'The Australian' (Bridget Carter, DataRoom):

"David Di Pilla’s HMC Capital has snapped up 5 per cent of GrainCorp because he believes that its assets are undervalued, but so do analysts, according to research from Ord Minnett.

The broker issued a research note on Wednesday saying that GrainCorp’s port assets and earnings were both undervalued by the market, representing an attractive opportunity for incoming investors.

The analysts say that the seven export port terminals are not fully reflected in the GrainCorp share price, with their valuations pegging the net assets on a replacement value being at $11.80 per share.

GrainCorp shares on Wednesday closed at $8.31 with its market value being $1.89bn..."

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Given construction costs tend to increase by more than CPI in most years, perhaps the 'value' of GNC's seven bulk terminals at Australian ports may be even higher.

On a smaller scale, we have the 160 silos/bunker areas at railway sidings.

These silos are mostly elderly but maintained fit for purpose. To replace them all wouldn't be cheap. Some competitors 'load on the main/branch line' (in other words, the grain train doesn't go into a siding, but the grain handler transfers the grain from a storage facility while the train has what railways call 'absolute occupation' of the line.