Lots of "stuff" in that webinar but also lots of "nothing". It will take some time to dissect as some key points had the dialogue taper off or the comments were incomplete leaving an unclean answer.
Some alarm bells going off in regards some of the comments for sure and I understand why some shareholders expressed some concern after the webinar whilst others nodded off.
Too much detail in some areas, not really of interest to shareholders and poor details in other areas where shareholders interest is currently heightened with some topics firing up their defence mechanisms which is neither required nor expected (e.g. processing capacity, TAU costs etc.). Also talking of TAU the whole farm ownership management and "change" and their related costs issue is still very opaque and quite frankly irritating, I don't care if they charge $1 or $1m but report the damn thing in a manner that is understandable and measureable rather than the rubbish they constantly trot out.
As for strategy, I was saddened that, still, they cannot articulate their strategy in a clear concise manner and rabbited on about various "deals" or product shift or contract manufacturing or some other reason they cant have a strategy and need to be responsive to a dynamic market demand or claim they are in M&A mode and yet have no appetite for new capital or or or or...."strategy" and everything related to it and risk is not a strength of neither Peter nor Adrian's it would seem but they can certainly talk "stuff" that fills the time gap. As a consequence of not understanding their were some views and positions they have chosen to take that are disconcerting as they clearly misunderstand some nuances in some markets or lack some of the more sophisticated funding instruments available to help the business grow and right now the cost of funds is low and opportunities are ripe in the marketplace.
Other than that, it wasn't too bad for a first time using the webinar as a tool for broadcasting a presentation walk-through. Adrian had to lift Peter out of the micro-detail on more than one occasion and laying blame or naming peers/competitors is a no go but it was done more than once, also lecturing people on what the dairy business is about was irritating and condescending. Someone needs to work on or get some training in dealing with shareholders and investors and also what dialogue they seek as this one missed the mark a little.
I see Grant62 did a point by point post on some areas that were commented so not going to repeated other than the financials were not covered so lets see what the quarterly cash-flow comes up with next week and if they offer any associated commentary as some costs (incurred and accrued) are going to be looked at closely.
A very conflicted company that is struggling to come to grips with what it has and what it should do with it so in the meantime they keep moving the goalposts and keep institutional investment at arms length.
AHF Price at posting:
14.0¢ Sentiment: None Disclosure: Not Held
