whats webster worth?, page-6

Cashew

Not a farmer just a private investor with an ear to the ground.

1) Carrying cost in 08/09 accounts was $45,919 million. Tassal holding was 28,139,372. Giving a gross carrying cost of $1.63 ($0.71 per Webster share). No disagreement there however Note 3 to the accounts includes a liability of $7.675 million for deferred tax on investment in associates. My understanding is that this represents the tax liability on the unrealised capital gain on the Tassal holding. At a 30% tax rate this implies an unrealised capital gain of approx $25.5 Million. Leaving a cost base of approx $0.72 ($0.31 per Webster share).

2) I think the Sandhurst holding is on behalf of Errol Stewarts JMC group. But Im not sure, could be wrong - often am.

3) I agree that the Tassal stake should be distributed to shareholders and that Webster is not likely to go below 20% unless they deal with the entire holding.

4) I dont think the half yearly cash flow will be representative of full year cash flow because of seasonality. I think the discrepancy in market price to NTA is because opinion on value is very subjective and thats what makes investing such an intriguing game. To a lot of people WBA has no value because its price is trending down Breaking that trend will be the first obstacle for a higher WBA market price until then, those with an opposing view on value can accumulate at ever lower prices.

Cheers