time for a re-rating?

Webster, Australia's fourth oldest business, is now a walnut-focussed company. It added to its walnut assets last year by picking up Gunns' walnut business - hopefully at a fire-sale price seeing Gunns was a desperate seller (time will tell whether it was a bargain).

In any event, Webster is poised for a huge increase in walnut production over the next few years (destined mainly for its already established — and diversified — export markets).

Despite the strong $A, it posted a profit last year, has little to no debt and, following last year's re-structure, the company now has a clear focus.

Management has been criticised (including by hot copper posters) but in my view they've performed well in the last few years: sold Tassal holding; exited underperforming carrot operations; bought Gunns walnuts; and paid off debt via a rights issue.