Questions for Management, page-188

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Hopeful9

10,766 Posts.

1421

07/07/21

13:42

Post #: 54342973
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Originally posted by jboustany: ↑

Thanks for responding Islandmurray.

I completely agree with rebranding the organisation away from dairy as they seem to be increasingly diversifying; it would also help develop a better reputation and fresh new image. I haven’t thought about that before, now that you mention it, I think it would be a wise strategy.

Yes I would be a fool not to acknowledge that sectors move together at least to some degree a lot of the time. Although I think with small caps looking at the sector/industry is not as important a consideration? Particularly a small cap with very depressed prices such as KTD, that has the issues I described.

I haven’t done in depth research so I could be wrong, but The handful of Australian dairy companies on the asx have mostly been affected by the specific geopolitical and logistical issues I described and this is possibly being conflated with broader trends in the dairy industry?

The data may be mixed but a lot of it is potentially coincidental. The question that needs to be asked he is to what extent the sector/industry is influencing the share price of a specific company ?

As you say it is generally an important consideration and the ‘average punter’ may be deterred by the trends in dairy companies; although my point is that I think the sector consideration is minuscule in explaining or predicting the share price trends for KTD compared to the factors I listed. Almost negligible insofar as predicting a substantial turn around in share price from here.

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BGA is a dairying company (although it also manufactures speads such as Vegemite, Bega peanut butter and the wonderful Simply Nuts, pus has a foodservice operation).

While its share price has gone south for the last couple of weeks (though still above a capital raising price it offered to holders so that it could purchase Lion Dairy and Drinks). I don't believe one could blame its dropping price on geopolitical tensions with mainland communist China.

Last edited by Hopeful9: 07/07/21

KTD Price at posting: 13.0¢ Sentiment: Hold Disclosure: Held
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