Ann: Summary of 2019 Half-Year Results, page-2

I admire the way this company sees the world - very glass half full. Somewhat like the Little Engine that could going up a hill with the song "I think I can" coming out his spout.

BUT

this is what I see:

• Debt increased from $10.4 million to $15.2 million, interest cost will increase by 50% YoY
• Sale of a property by expression of interest has failed to sell and the market for any real estate is not good. Unlikely to realise the value of that asset
• Revenue flat, expenses up and a widening loss 
• Inventory doubled, so is the stuff they are making actually selling?
• Given the projected cash outflow for Jan - Mar quarter is $6.5 million ($4.5 in production, plus $2.0 for opex), this means that they will potentially run out of cash in early May; if they sell Ignatios Farm, that will stretch it out until August, but this property could be the subject of a rushed sale.
• Given the poor rainfall lately, milk production is down for producers

The headwinds for this company are get stronger and stronger. They have a strategy - executing it before the money well dries up is problematic.

I rate them as the Little Engine that may not get there.