I was surprised by that decision by the RBA to cut the rates...

I was surprised by that decision by the RBA to cut the rates today.

Without question though, the interest rate cut is a positive for Select Harvests.

Last year, they sold their almonds at the rate of 0.92 to the USD. Following on from the interest rate reduction today, the AUD has fallen to 0.765 vs the US. So the Australian dollar has now fallen by 17% compared to the rate at which they sold their almonds in 2014.

In addition, Select has a chunk of debt on their books, and the fall in the rates should reduce their interest expenses.

I think that drop in the interest rates, combined with the lower fuel costs, might shave about 5% off their annual expenditure bill.

The lower interest rates also reduces some of the urgency to pay down their debt, so I suspect it could also result in a bigger than expected increase in dividend this year, assuming the 2015 harvest is at least ok.

I think the title of this thread is right: Re-rating. Following on from the interest rate cut I don't think there is any good reason as to why the share price of this stock shouldn't have a '7' in front of it.