DFM (ASX) Hav you considered this?

Originally posted by dancer36 ↑

OK so one shareholder of 5.5% has sold out, well at least 19 mill,we don’t know as yet if he /they have any left. Before this we see from the share register they took up the full wack at $2.07 div reinvestment plan. Before this the top 20 has just on 97% of the share register. Great but uncomfortable and insufficient t to have the company in any index, this normally requires some 20% free float.
You must ask yourself have any of the business essentials changed. Well at first sight we are assured by the company that the recent rains and floods have had no significant effect on loss. This is because all 23 plantations are spread and located in hilly locations, What wasn’t said id that many lower lying farms have suffered considerable loss. Some say China will suffer a $30 billion economic loss. It is hard to pinpoint this statement. It is also said that most will recover (inTime). The same commentators say that those who did not suffer may get 15-20% better prices for the forthcoming season.
Remember this company has an enviable 5 year track records with continuous profit improvement by better methods and accumulation of acreage. Directors have singled out they are looking for some vertical integration which could include Australian acreage or processes. They know Australian product brings elevated prices. Meanwhile they are able to expand existing acreage. And guess what!...Why not when you earn approx. 40% margin.
Shareholder currently receive 5cps approx. 20% of earnings, the balance is churned back into buying more properties. You have to ask yourself what would they pay when organic growth slows and there is surplus revenue to distribute. This year they should earn +2c to say 25cps allowing a 6c div. If like industrial companies they would pay say 40% Div i.e 10 cps …remember agricultural products pay little or no tax in China (an this is unlikely to change) they would not be in the low $1+

So we are selling at 4-5 times earnings, have something like $50 m in bank. Show me another one like this. Most have multiples of x20 and do not have the tax advantage.
OH! I am not sure but BVI companies pay capital gains tax . The ATO should move fast if they want to collect their share.
I purchased a small holding today from my bank deposits earning 2.9% pretax and no chance of a capital gain

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Makes sense Dancer36. As the company looks to be in such a great position, why would a substantial shareholder want to clear out so suddenly?