Diversified with Fonterra? How does that diversify their exposure away from an Australia wide drought? Cows need to eat feed grains which are about to hyperinflate due to lack of supply. Diddler you clearly do not understand the risks inherent in this stock and should not be recommending others to buy it.
The risks: 1. Costs from Cole Inquiry. 2. Request to refund claimed tax deductions on false freight charges in Iraq. 3. Costs from defending legal ramifications after the Cole INquiry. 4. Australia wide drought (barring SA) which has the potential to reduce production to below 20 million tonnes as opposed to the normal 40 million tonnes of grains Australia produces. 5. Costs associated with defending class actions from shareholders and the US. 6. Lack lustre revenue from its Landmark business as farmers enduring drought cut inputs dramatically! 7. Losing Single Desk - grower angst is growing as the drought slashs expected farm incomes.
So I ask the question, why would you buy when the risks are so great to the very existance of this company!
AWB Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
