Taking into account margin pressures that eroded profits, one-off losses, and IPO costs, the EFY 16 looks like it's going to be about 14 mill...extremely dismal at best, not that the company could be held accountable for margins, engine issues, or media sentiment.
Ironically the animal welfare issues have potentially played into the hands of Wellard via a possible gain in market share.
I think looking ahead I'll back a determined CEO...
I'm wondering if the culture of Italian family pride will kick in?
Currently, we know Mr Balzarini is in the process of selling down personal assets.
Having my father and grandfather on both sides own farms, I know that among the Aussie farming community there exists a culture that you would only sell the farm as a last resort.
Interestingly Mauro owned the farms through WHG, as the article states "The farms, accumulated by WGH in a spending spree that started in 2009" which to me suggests they were a recent business purchase with little if any emotional attachment.
Conversely, given that he's sold virtually everything else around him, home in Perth, property in Italy?? the WA farms owned bought through WGH, he's focusing on making WLD a success.
WLD was first started by his father Emilio, a stock export business in 1979...
I'm thinking he would hope to be able to see his father's business grow and succeed.
According to the article written by Brad Thompson - The West Australian on August 14 the CEO stated...
“For Wellard, it is business as usual, we are an Australian company, we are listed on the ASX and our share price will bounce back soon,” he said.
Cashed up, disappointed at not being granted Australian citizenship
The story states "He also admitted to being upset after “silly bureaucracy” foiled his attempts to gain Australian citizenship."
Could it be that if he feels the current share price does not accurately reflect the value of the business that he may start buying shares?
A few weeks following the final result being released, will regulatory restrictions upon directors buying or selling stock prior to sensitive information being released to the market no longer be applicable?
If he has publicly stated in an interview that the shares will bounce, perhaps he's sharing the same sentiment with friends? Accumulation could be happening?
My decision to buy more today, a litttle heavy WLD now, is that I'm going to back a determined, jaded CEO who for no other reason that family pride.
He is demonstrating that he's willing to sell everything to keep the business and will work toward doing his best to get the company back on track. going so far as to state the share price will bounce!!
Given the MLA's inferance of headwinds for current high prices, the ability of the company to source stock from South America, a full fleet working, in a few years this companies profits may turn form the current disapointing state.
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