With Woolies departing from the register its a bit like the child leaving home to fend for them-self.
When Woolies first came on board Gage were having a tough time and cost blowouts due to uneconomical production runs and small distribution.
So what did Woolies do for Gage ? Contract brewing for their own brands with up front payments encouraged upgrades and expansion to the brewery and guaranteed loans to enable this work to proceed and gave us a large number of outlets.
Granted they would have secured a favorable buying price but all up it did help grow the business.
Now we are on our own again with a stronger position and blue sky.
New national distributors, major bank as a substantial holder, reduced debt and cash in the bank.
Now waiting for the dust to settle after the capital raising and the share price to stabilise.
We should have an interesting quarterly coming up and a even better one earl next year.
Am I feeling comfortable? I came on board 8 years ago and weathered the bumps, Now with a nice size holding and an average price (including brokerage and taxes) of 4 cents, You bet I am.
GRB Price at posting:
3.9¢ Sentiment: Buy Disclosure: Held
