BFC didn't pull their money out of B-d Paris Creek - B-d Paris Creek were the ones who wanted out of BFC. Ask anyone remotely connected to the dairy industry and they will confirm that.
Purchasing a plant for $4m sounds good compared to other prices, but it was in liquidation and for a reason. BFC have just continued the loss making with fresh money.
There's two ways of looking at BFC - net assets or profitability. It is undervalued compared to the carrying value of its net assets, but every part of the business is making a loss. The core business of dairy farms and manufacturing is making a loss, their investee companies are making losses despite BFC paying significant money for them, and their China business was a disaster last year. They completely stuffed up the Clean Seas deal with another well respected SA food business now reaping the benefits of that. I will be amazed if BFC doesn't make a loss again this year - you can't turnaround losses of the magnitude they had last year quickly.
BFC are pure spin in terms of their operations. When have you seen any evidence that one of their announcements has proven profitable? If you are looking for a dividend then find a different stock. Check out the out-performance fee clauses in the prospectus - if there's any profit it's only going to go to one person.
BFC Price at posting:
29.0¢ Sentiment: Sell Disclosure: Not Held
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