I cannot with any great degree of knowledge contribute to the discussion on the MRY developments but would observe that as a speculative investment it has considerable more potential than some of their recent investment decisions.
The farmworks FWA involvement I see as a much more positive development and although the 17.8% is not huge this investment should be a good earner. The outlook for rural industries has undergone a considerable change and there is much more upside now than was evident in recent times. Good rain over much of the country has improved subsoil moisture and strengthened the outlook for this seasons summer plant. Demand for seed , fertiliser and in particular chemicals has risen and Farmworks is in a good position to capitalise on this improved market. The recent good rain has stimulated excellent growing conditions and animal production will benefit. Despite a lack of store cattle for restockers, increased demand for veterinary products, other rural merchandise, and stud stock should be strong and should generate increased sales. Farmworks and by extension Charter Pacific should be the winner.
CHF Price at posting:
9.0¢ Sentiment: Buy Disclosure: Held
