You are crazy no way someone pays $3 That is and EV including...

You are crazy no way someone pays $3

That is and EV including debt of $2 bil

No way anyone pays $2 bn for a mgc . That is a Pe of 70 times

You and the farners need to realise that ain't going to happen

You say the dollar don't mean a lot unless $3. You guys change suppliers to make another $30 k pa your investment is 10 years of earnings.

So stay as a co op you don't supply to .... you can't have cake and eat it

Seriously the company has to much debt has bad contracts and leases in place which are dumb and you say stay as is

Get your co op back to what it was...gear up to the eye balls so you get the highest milk price... crazy stuff... the co op doesn't work as you don't have access to capital mkts and can't grow

Seriously you can't talk about your mgc shares as don't mean anything and then say $3.... you need to come up with real valuation analysis

$1.25 is all I would pay and I own a lot of mgc

Europeans aren't going to pay silly price

Ok let's compare bega

Bega mkt cap $1.2 bil and debt $165 mil

Ev let's call it $1.4 bil

On that asset base profit for 2018 will be $51 mil

So that is a Pe of 27 times of enterprise value

Mgc

Enterprise value $810 mil ($360 mil equity and debt $450 mil)

Profit $30 mil 2018


The mgc business is no where near as good as Bega so to justify an equal valuation you get a value of $1.70

This means you value Bega and mgc on equal enterprise values of $1.4 bil

I can't see how you can do this when one is making $30 mil profit and the other $50 mil

Let's say they do $1.70 is absolute max you get


You got to forget about using litres of milk as the valuation model. Bega process less for a profit much greater than mgc

I say yes you supply more milk and you get higher price in takeover bid but you value company on pure profit and enterprise value no way $3 stakes up

$3 if they process 3.5 bn litres of milk yes but no way would anyone pay $3 for mgc when 2 bn of milk

Don't vote against a Bega takeover if not $3 because you will never ever see $3... take the Bega shares and they will get you $3 over next 5 years