Been buying some AAC over past few days and have entry price of...

Been buying some AAC over past few days and have entry price of $1.252av. Great company with great assets but prev CEO simply not up to the job. I used to see him at meetings when he was CEO of Colly Farms and always came away underwhelmed when he spoke/commented re the cotton industry. Thankfully he has gone but SP took a hammering under his reign.

So why now? Beef prices are excellent, demand is strong and likely to remain so. Our national herd is down substantially and when drought ends it will put even more pressure on beef prices. Land values are high and likely to stay high as long as Chinese remain interested in buying.

NTA including the cattle is $1.53 i.e. 22% ABOVE current SP. Add goodwill and one can only speculate what AAC would sell for as a going concern. The abattoir a mix of labour including skilled staff from Philippines and possibly Brazil.

But most of all I've bought now as many AAC properties received significant rainfall in March (see link) and my preferred broker 'stocksinvalue' who are pretty conservative have FY17 IV $1.56. That's 25% above what i paid and my target margin when investing.

Anyone else buying a few?

http://www.bom.gov.au/jsp/awap/rain...atest&step=0&map=totals&period=month&area=nat