Yes, Plimsoll, I hold stock in BFC (Beston). That is the reason I am curious with LON.
Beston floated after they got the Murray Bridge United Dairies off the receivers at a super low price. They used the float money to pay for the dairies, some farms, a share in a tuna processing company, a lobster quota, Scorpio Meats (part, now full), an note from B-d Farm Paris Creek and more. The idea was to sell premium Australian produce into China and make squillions of dollars and live happily ever after. Sounds good. However, they have learnt the hard way that it doesn't just happen. So now they are doingf what they should have done first and combining Asian sales with establishing brands in Australia. The established brands here are very important for the diagou to inform their compatriots in China what is good and what isn't.
The share price of BFC is well down compared to the float two years ago. It is a slow process.
It was BFC that lent B-d Farm Paris Creek the $7 million to make their extensions to the factory. BFC have been selling B-d Farm Paris Creek products on their Beston Marketplace website and distributing overseas.
However, the loan was abruptly terminated with BFC announcing that their dairy products were going to be in direct competition with quite a few of B-d Farm Parsi Creek products. In the process, BFC sold their Wellington farm to B-d Farm Paris Creek to assist them to obtain volume. B-d are aiming for up to 20 million litres of milk products. Meanwhile, BFC are pumping out 90 million litres of dairy products per annum.
So I was a bit gobsmacked when B-d Farm Paris Creek was suddenly sold to POP (LON).
BFC still have enough cash at bank they could have bought B-d. Why didn't they? Unless there is something we don't know that BFC knows, I can only assume that LON kept offering more money till they won it.
So I looked at the figures and I do believe that LON paid too much. Either Laura McBain is going to weave some magic or there will be a writedown in value coming up. I hope for your sake it is the first option.
LON Price at posting:
4.9¢ Sentiment: Sell Disclosure: Not Held
