I am not familiar with sandalwood so the only things i can depend on to analyse the company are common sense and accounting knowledge. then of course plenty of things i cannot understand and hope someone can explain or discuss.
1. demand: "Majority of harvests through to 2021 now forward sold". we all know sandal wood will produce oil and wood, im wondering "majority of harvests" means all the related product? or just unprocessed wood?
2. Supply: we will have more than 300 tones of heartwood, a tenfold increase on 2015 harvest. We know heartwood is the most valuable part of sandalwood, and can be processed into oil and related product. for the year ending 30 June 2016, product sales contributed $29.8m. Assuming we can transfer all the harvest into sale obviously we will see a very favorable result next year, but what about next? will this result, or growth be sustainable?
TFC Price at posting:
$1.50 Sentiment: Buy Disclosure: Held
