The manager is claiming the revenue from the sale of sandalwood will not exceed the costs of harvest. They are proposing to abandon the trees and leave them for the owner of the land.
Either: 1) the owner of the land is going to be very unhappy having been left with hectares of low value trees
or
2) the revenue from sale of the sandalwood will exceed the costs of harvest.
I am expecting an associate of these managers to buy the trees from the owner of the land at fire sale price, gradually harvest and sell into the market (so as to not flood the market) while allowing the unharvested trees to grow to increase size and density of sandalwood oil.
The growers get screwed.
But, what options to we have?
QIN Price at posting:
29.5¢ Sentiment: Hold Disclosure: Held
