sell off, why exactly?, page-2

I saw your unanswered post Olive Oil and I will try to come to your rescue,
Sorry I am not popeye


I fancy this one as a turnaround story, with some good leverage at these prices

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BUSINESS DESCRIPTION
Yates Limited, formerly Norgard Clohessy Equity,(YTL) and Arthur Yates & Co Limited were merged in
March 2001. Arthur Yates & Co Limited became a wholly owned subsidiary of YTL. YTL now has two
major areas of operations: garden products and forestry.
Arthur Yates & Co. is a leading manufacturer and arketer of garden products and vegetable seeds in
Australia and New Zealand. Products include seeds and bulbs, plant health products, garden merchandise andgrowing media.
Norgard Clohessy Equity Limited specialises in themarketing of managed investment products particularly
in the agribusiness sector.
The company offers productsthat are innovative commercial and tax effective.
STRATEGY ANALYSIS
YTL posted improved earnings for the half year toDecember 2001. The result comprised a $2.7 million
profit from Arthur Yates and a $0.9 million loss fromYates equity which includes Yates Forestry.
The strongresult of Arthur Yates was attributable to a number ofrestructuring activities, and performance of YatesBotanicals and the Mt Druitt warehouse.
Following the merger, YTL has undergone a significant degree of reorganization and refocus, while remains committed to the large-scale agribusiness.
A number of ongoing initiatives have been planned across all area of
operations.
A restructure of the Agribusiness Investment division to bring minimize unnecessary costs almost
completed. Arthur Yates & Co has reduced its manning 8% to 542 positions over last year and centralized its accounting and administration.
YTL"s strategy is focused on its core gardening products business and the rationalization of its products to ensure that all products realized adequate returns.
The group is also looking to extract value from its forestry assets.
As part of its strategy, YTL plans to rationalize its growing media (potting mix) operations in New Zealand
and commercialise its Yates Saltgrow Eucalypts, which has combined characteristics of salt and stress tolerance.
Analysts forecast an improvement in earnings over the
next two years.