MRO Crop and global prices!, page-37

I have no farming experience so won't comment on crop.

Since listing MRG has performed badly and did not meet expectations. Management failed. I thought MRG was going to be a leading organic grower selling into high value Asian markets. If you look at the last EOFY reports MRG buys significant product from other growers. Limited product has been sold in Asia. The owned and leased farming assets have been poorly managed. I'd need to see solid results of MRG delivering the right products to the right markets to have any confidence management has addressed shortcomings.

The promoted MRG turnaround plan is light on. Most of it is the stuff management consultants fill reports with. Give me the detail and report the results eg MRG have talked about cost cutting initiatives for a very long time with little tangible reporting of results.

I've read comments that MRG has the right people in the top jobs with proven turnaround experience. Research that experience and tell me if you are impressed. Taking the helm of a struggling business is another level of challenge. Maybe MRG does have the right team now, but that needs to be demonstrated.

The current management team has been in place for nearly a year. They are in place with the influence of the some original players in the float. The length of time MRG was in a trading halt and the regular extensions were poor. Communication with shareholders has fallen well short of my expectations. Debt information was incomplete. Acquisition approaches had limited communication.
 

You could be excused for thinking the last capital raising went into improving farming assets. The detail suggests it went to the NAB to reduce debt as a requirement of a financing package. MRG has been burning cash and shareholder value. There needs to be a big cashflow turnaround or shareholders will be tapped again.

MRG may have a huge potential upside, but it didn't add up for me on a risk return basis. I voted with my feet and did not take up my entitlement in the last capital raise and sold my stock the morning MRG re-listed after its very lengthy holiday.