awfull half yearly, page-2

Hi Plough,

With all due respect, I think you are a hard marker:). Yes there are some dissapointing points from the reports, though overall under the current environmental factors, I think they have done quite well and all bodes extremely well for the future when/if the seasons get back to some normality. Certainly a profit under the current environmental climate should be veiwed as exceptional.

Namoi has a lot of fixed costs associated with their gins (and a load of book value from these assets), to run the show on such a small production turnover and still turn a profit deserves some accolade I think.

I agree it appears dissapointing to see the employees benefits are up by 50%, though keep in mind that they would have had more employee hours compared to F08 due to the extra ginning and marketing throughput. There would have also been extra costs associated to the extended ginning season due to the weather, they did mention that briefly in the report.

Namoi's profitablity is allowing them to venture carefully into other areas which seem to utilize their current infrastructure facilities, which also seems a positive for future development as long as they don't take their eye off their real expertise.

I still don't see anything that makes me want to reduce my holding, with a PE of a little over 2 and net tangible assets of 119c per share, you would have to say Namoi is very undervalued. Don't get me wrong, I am not trying to suggest anyone go out and buy this stock as it is not out of the woods yet, there is no normality in the seasons and they are running at such low capacity. I am still cautiously buying as extra funds allow.

Plough, I agree with your sentiment that Namoi don't appear to be reporting that they are working on things like the organic cotton, though they seem to have plenty of expansive projects on the go.

Keep up your good commentary if you hear anything, it is a bit lonely on this stock as it looks like it is only you and me interested in NAM. Mop.