Agree with all the comments here - the Paris Creek business is very solid in its own right with plenty of room for growth and i would be surprised if Laura and co can't turn the maggie beer business around. So its pretty safe buying at these levels.
At some point down the track, they are going to have a crack at Asia including infant formula. Laura has made a big deal about the value of Paris Creek being transparency and security over supply.
So the question you have to ask yourself is, do you buy know when this future strategy is unknown? or do you buy in 6 months, 12 months, 18 months etc as the Asia strategy becomes clear.
The way I see it, demand for organics is extremely fast growing and in a lot of segments, demand outstrips supply. Same for free range / pasture raised eggs. Farmers I know just can't supply enough of them and some are even price makers when selling to the big guys.
It is a matter of time before supply constraints around quality, organic infant formula become an issue IMO. And reading between the lines, this could be one of the reasons behind why Laura has come across from BAL and made the Paris Creek acquisition.
For stocks like this I would rather be in too early and too high, than too late, because when the right snippet of news breaks in this space, we will be off to the races.
LON Price at posting:
3.9¢ Sentiment: Buy Disclosure: Held
