Sammieboy: Where are the big shareholders? Why no Board...

Sammieboy: Where are the big shareholders? Why no Board representation? Obviously friction between Sexton and major shareholders.

What I was told was that the initial investment from Dashang came with the condition that their Chairman get a seat on the Board. Dashang's Chairman at some stage before joining the Board said he was too busy and nominated his Australian representative to fill that place. Beston didn't like the nominated guy and said no - dispute was never resolved and the results are evident.

Monaro186s: What is the basis for this, given the dairy division is building momentum, with milk production currently at 120 million litres and the mozzarella plant now in operation.

This will be very interesting. In their Annual Report under The Path Forward they state "Having completed the infrastructure build-out in its Dairy Division and having commissioned thenew Mozzarella plant, the Company has returned to profitable trading and is cash flow positive." Now, this is from someone who knows someone that works there so take it with appropriate skepticism, but the feedback was they they were a fair way from profit in the first quarter. Losses the scale of FY2018 don't turnaround overnight, and the commentary in the Annual Report such as "The result is disappointing, especially against where we expected the company to be at this point in itsdevelopment and can be attributed, substantially to timing delays and increased costs in obtainingdelivery of and installing the Company’s new Mozzarella plant at Jervois, South Australia.....Moreover, the Company increased its workforce in the second half to deal withthe installation and commissioning of the Mozzarella plant and incurred considerably more expenditure inthis process than anticipated."  isn't helpful as it is inaccurate - any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management, including employee costs associated with acquiring and constructing the asset and commissioning costs are capitalised and not expensed. It's erroneous at best and deliberately misleading at worst, but regardless it is not good enough from an Investment Manager. 

As others have said above unless BPAM is removed the company will continue to underperform. The Motley Fool has it right before they even listed with "With a bunch of virtually unrelated assets thrown together, no verifiable track record of running the acquired assets, inexperienced management and what I’ll call an ‘unusual’ business structure, Foolish investors would be wise to steer well clear of Beston Global Food for now. Let the company prove itself, management, its business model and strategy first."  If only I had paid attention before buying in and selling at a loss.