I have dived in yesterday and topped up at 1.11 an 1.115 and also have an order pending at 1.12. I'm confident the worst is over and while the SP may move between 1.10 to 1.18 over the coming days I'm confident I'm sitting on a comfortable profit to be realised by Christmas. If I'm wrong then so be it, I'll accept the loss as a learning opportunity and not a failure.
But I believe the underlying business fundamentals and strategy are sound, the former MD did build good foundations on which the business can build and while they may lose some milk, I believe it will not be material and at the edges of the bell curve (where the risk of loss is always apparent with those suppliers anyway). I'm confident in the resilience and loyalty of the suppliers and believe the vast majority are behind the company but unhappy with the current situation, and rightly so.
However, I do expect that when the Town Hall meetings conclude and the dust settles, we will have a culling of some Executive General Managers, which must surely focus on the EGM Dairy Foods (failure to deliver his International/Chinese sales strategy) and the EGM Corporate Development and Reputation (Failed to achieve or maintain either in the current climate). I'm not opposed to a new MD, although they would have to be of a high calibre, have a great reputation and have effectively managed a listed company, something the business is lacking.
MGC Price at posting:
$1.13 Sentiment: Buy Disclosure: Held
