I really enjoyed this company from the time they rebuilt after the fire. At the time I thought a simple company which dominates the Australian market with an easy to understand product.
Selling the manuka assets into a joint venture with a much more Dominant competitor in key markets doesn't make sense.
Why not team up with the csiro or local Australian honey industry? They could have been the leaders with a purely Australian product.
By getting into bed with the devil... I don't think they will be able to generate xs returns from these assets. And more likely will be taken over... Possibly at a premium but not the potential multi-cap gains they could have had.
Debt... They should be open about why the jv needed debt funding... Debt funding far in excess of the "accounting profit" the sale of assets generated.
Again an Australian govt grant of even equity raising would have been preferable.
Nothing mgmt has done shows they have the ability to run anything EXCEPT RUN A wonderful simple stable business...
so why not keep the business simple... Debt free... With clear ownership of assets... And large number going to satisfied Australian customers
If doesn't have a crazy multiple like Bal because it doesn't have the growth / supply chain dynamics of those companies.
I like the potential of this company being run simply. Hence my disdain for mgmt right now.
They were a Disallowed for me so I shouldn't complain. But forcing me to sell a company I didn't want to and pay a cgt liability anniys me
CZZ Price at posting:
$14.55 Sentiment: Sell Disclosure: Not Held
