Prospectus a concern

Go back and take a close read of the Prospectus. Margins were said to be unaffected by cattle prices and the business was scalable to four times its then size (one ship to four ships). Now we are told margins are severely affected by cattle prices, and the business model must be adjusted to move to offshore sourcing to achieve reasonable margins. Debt is also higher than expected. This is an agricultural stock and like any other agricultural business if you get two good years in five you are doing well. The inability to pass on higher costs implies tough competition, and the South American to Asia run must also have high competition ( if not, Wellard's early success must draw in more competition). My opinion : this stock is heading for a share price of 20 - 25 cents. Forget NTA - the major NTA is ships, and these would likely fetch a poor price in a fire sale.