Thank you Cabaking
You sound very confident .
I appreciate the research pointers to be going on with and, as U bought a few shares today, now have greater incentive
One question :
When you said Cooper’s backs management all the time I guess you nean Cooper Investments buys into every Bega SPP and/orthey backed Simplot when Bega’s new director, Terry O’Brien was there ?
He joined Bega in September 2017 . Before that ....“Mr O’Brien headed the Simplot business, which includes leading brands such as John West, Edgell, Birds Eye Chiko and Lean Cuisine, between 2001 and 2017.”
https://www.farmonline.com.au/story/4936481/agribusiness-buzz-in-brief/
..and he left in a high note
https://www.smh.com.au/business/pro...roll-birds-eye-john-west-20160122-gmbojs.html
And for anyone wandering by here’s a bit more on Bega head, Barry Irvin; it’s a nice story from last November dealing with his history and strategy :
https://www.intheblack.com/articles/2017/11/01/how-bega-bought-vegemite.
Here’s an excerpt :
“Beyond dairy: a savvy strategy for survival (from November last year )
......
.......Irvin embarked on a strategy of clever contractual deals, and mergers and acquisitions.
“I wanted to talk to everyone in the industry about where the opportunities might come, and how to structure deals to strengthen the company and balance sheet. Looking back, there was an element of risk in what I was trying to do, but I was trying to batten down the hatches in a completely changed business environment.”
His first deal, finalised in late 2012, gave NZ firm Fonterra the licence to market and distribute the Bega brand. This enabled the company to consolidate its cheese packing, cutting and processing operations.
“That model meant we could bring in more volume, tripling production throughout our plants and growing our staff from 100 to 300. Because of the deal, some of our competitors became our customers. This isn’t something that people generally think about doing, but it actually helped us to become a large service provider.”
Next came a well-publicised but unsuccessful bid to take over Warrnambool Cheese and Butter Factory (WCB) in late 2013. Following a robust three-way bidding war between Canadian dairy company Saputo, local company Murray-Goulburn, and Bega Cheese, the company chose to bow out of the race and sell its shares to Saputo.
“While we were unsuccessful, there was a handsome second prize. Selling our shares enabled us to strengthen our balance sheet, and released around A$100 million in cash flow.”
(20min delay)
