Ann: Microcap Conference Presentation , page-8

Yes it is a mad hatters tea party stock for me. I cannot find any logic in punting it but like the product.

To enlighten you re Tassal ( TGR) they first tabled a resolution at the 2008 agm to allow the directors to dispose of the TGR shares without further reference to shareholders. It was defeated as a major shareholder "Futuris" voted its 20.7 million shares against the resolution. They then sold their equity soon after the AGM - I dont know the agenda but as you know Futuris / Elders had their own issues. Futuris owned 33% of WBA at the time the Chairman resigned after AGM.

After the sellout it was tabled again in March 2009 and was passed. Prior to the 2009 year end they had sold 7 million shares netting $1.7m The 2009 AGM reaffirmed their investment in TGR yet the debt was around $23m which was being said to be high in light of the industry risks. Accounts Receivable had moved out a lot as well. The EPS had dropped by 45%.

1H 2010 had slipped to a loss ( They never do well in first half) but more disturbing was that Debt had moved to around $27/28m. Thats not abnormal given the timing of harvests but it was seen as another bad result.

In June 2010 they bailed on the carrots due to poor results and large losses.

13 Aug 2010 came the profit warning. 27 Aug the 2010 result comes out and in it they note that the investment in TGR was under review. Profits are now 400k down by over 6m from 2008. Borrowings are stuck at around $27/28 m. In the AGM 2010 presentation they state that they tested the market for a possible sale and that this appointment occured in April 2010 but market interest was not meeting the directors price hurdle. They revote on the trading of the TGR shares and also note that the facilities (bank) have been renewed until the "December half of 2011" That seemed to be a very short term renewal. The AGM was 20 October 2010 and the minimum price to sell TGR was now set lower at $1.20. 9 Dec 2010 they sell the TGR @1.79 per share - very good price. A new Substantial holder in WBA also appears. Interesting to look at the prices they were prepared to pay to get their stake by the way 9 dec 2010.

Gunns had placed their Walnut business on the market and announced this by way of a market update on 29 October 2010 with all offers to be in by 7 Dec 2010. 15 December the sale to WBA was announced.

The reason for this long timeline is that IMO the fundamental reason for the sale of TGR had been established long before the Gunns opportunity and that with the bankers not doing an annual renewal they were already under pressure. Had gunns sold its Walnut business to another party that would IMO have spelt the death of WBA Walnuts and a forced sale of TGR rto repay debt.

I do however think that owning the assets and working them pay for the overheads far better than a passive investment. However more importantly an asset had becauise of poor performance become the major business of WBA and had started becoming a backdoor entry into TGR.

In conclusion I dont think they had any choice but to sell the TGR shares and that the banks by not renewing the facility for a year had put the TGR shares up for sale at almost any price so that the debt could be repaid. That they had the good fortune to snare the Gunns assets was a welcome twist of fate.

Why do or have I invested - Because I see that with the right amount of tight management I could be climbing aboard a train that has a long way to run and over many years. However if I was to do any formal analysis I couldnt see the improvem,ent yet and a lack of free float ( actual shares traded - not theoretical float) I have had to enter a bit early IMO.

Please note the above is my summary and reasonably correct without examining each date etc - its a broad paintbrush and opinion.