Geday John - thanks for your response. I have to agree with you in general about the way these acquisitions have been made in the past. I'm not sure why intelligence often flies out the window when faced with a window dressed business that is for sale. I also have to admit to my knowledge of GNC being somewhat here and now, with little research of their history.
If Graincorp is the jewel in the crown, and carries the rest, then it would be frustrating for a long term holder that this keeps getting diluted. Maybe they will not match grain's returns with oil seeds. I'm thinking Gardner made OK money. Can they manage not to reduce the value of Gardner? I thought the Group MD of Gardner would have been the obvious choice to lead oils - was surprised they didn't say why not.
Don Seaten - majority holder of Gardner has taken an equity interest in GNC. I doubt he would have done so if he thought GNC was going to get hammered for this purchase as the performance unfolds.
Anyway - short term it looks as if GNC is managing the dilution of the cap raise OK. I don't see why this would trade below $9.80 TERP for long without further news. (Maybe the SP is going to go up because Watkins said "no more acquisitions").
GNC Price at posting:
$9.38 Sentiment: ST Buy Disclosure: Held
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