WLD - The AGM & Trading Update

The AGM is soon upon us, whereby I would imagine among other things, we will get a clearer idea of current trading conditions and whether or not they are operating at a slight profit/loss given their ability to source some stock from South America...

I guess the situation regarding financial covenants, along with the future outlook will also be addressed.

I'm leaning to believe the AGM will be okay, there has been literally no volume this month, aside the past few days, given such, I would say the market must for now believe mid 20's factors in current risks with future profits.

Although it's been suggested that both BUTT and Fulida are only in it to sure up their own supply of beef and sheep, this may be so, however, it doesn't really take away the fact that should the company remain operable for the next two years that profits will pick up considerably as the price of cattle reduces significantly.

The price Wellard pay for cattle is paramount to the bottom line, regardless of all other costs, the price they pay for cattle is the one that has the greatest impact on profits by a long shot.

Let's assume as suggested, that both BUTT and Fulida don't care if Wellard go under as they have their own safeguards written into their individual contracts which then ensures they will get their money back should the company go under (correct me if this is wrong)??

Recently some posters were quite adamant Wellard are done, as they believed that the company will not meet their obligations and therefore be foreclosed.

I don't believe so, to my knowledge, they would first have to exhaust all other avenues to source capital such as carrying out a CR, before they could be declared as unable to meet their financial obligations? I'm fairly confident this is right, hence why the share price is not .15 or lower.

I feel given the high profits that are to be had in the not to distant future, they could easily achieve a successful CR.

Alternatively, they could sell a ship as suggested by Edisonwaxin, but I think a CR would be better for now IF they do need urgent capital so as to maintain supply contracts and market share.

So, if current cash flows under current trading conditions are not sufficient to meet their financial obligations, following a CR, I see the share price rising considerably as it should see them through to profitable margins.

There is some weakness this past few days leading into the AGM, so some must be thinking there is one likely. If there is it will have to be around .23 .24 for the 14 day average?

These are some of my thoughts, can someone either correct or confirm the above please?

I see strong profits in two years so have decided to hold.