The only Australian olive oil stock, page-3

Good find, Showme.

Olive trees grow so well in this country that in some places they are considered an invasive weed. It is a wonder why so much olive oil is being imported from overseas given the natural competitive advantage local growers enjoy.

There were two positive developments for AAP this week, although both would be easy to overlook.

The first and more obvious was the surprise interest rate cut by the RBA on Tuesday. As a small company with a large debt load, AAP is walking on a tightrope, but each interest rate reduction provides them with a little more breathing space.

A second positive development for AAP this week was the small business tax cut announced in the budget: from July 1, the tax rate for small business will be reduced to 27.5% from 28.5 (a year ago it was 30%). In addition, the turnover threshold for small business increased from 2 million to 10 million: last year AAP's revenue was just under 3.5 million, so they now effectively fit into to the small business category for tax purposes.

Of course, if they are paying less tax then that leaves them more money to pay down their debt.

Given the positive developments above, you could argue that the AAP share price now deserves a bit of an upward re-rating.