pmb -posts mine from feb: Not well run but great assets. I...

pmb -posts mine from feb:

1. 
   
   Not well run but great assets. I believe much of their value added stuff is best run by entrepreneurial type family run businesses, especially the feedlots.  Margins slim and decision making with this mob a bit too bureaucratic.  Bear in mind I am a bit conservative in my thoughts  ( though often the opposite with my investing).
   
   Real key to it all is calf factory and live export I believe, plus the works will be strategic .
   
   Under share price pressure due to everyone expecting the beef price to drop, following on from herd buildup in the USA plus cheap buffalo and South American meat into Asia; and later this year more supply here.
   
   Thing is the prices here are holding, and USA had a bounce off the lows... but it is fading now a bit.
   0
   ReportQuick replyReply with quote
   AAC (ASX)
   
   
2. Those who wonder what I mean
   
   Good family run (gfr) bought up heaps barley at harvest to last nearly all year..AAC would have bought a bit more but nowhere near enough.  Gfr buys cattle themselves most often from known sources where they get genotype who give good weight gain under feed.  When gfr buy cattle elsewhere, they get them cheaper on average. Gfr make modifications to yards etc at cheaper costs ...etc ..etc
   
   I have no doubt AAC have some wyagu operations  that sit pretty well with what they are doing...however, they would sit better in a gfr.
   
   I have not the intimate knowledge of the properties, but I am sure over time AAC will get to do more higher value cropping on some northern places, particularly with focus on northern development.