Macfarms Hawaii, page-12

Hi GPASAS.
thanks for your kind words, yea with FRM I firstly entered at 8.2 c and averaged large stake at around 18c. You did well, got at least 700% so yea nothing to complain well done. Yea I was tempted to sell few times but when I revalued intrinsic value it was undervalued all the time. I believe 2.5 is target for this year...

re BUG you pointed right, yea SHV revenue is not that massively greater than BUG - I think BUG can be around 90 mil for this year and their new products are fantastic, ranged nationally in Woolies, Coles, Costco, IGA this half and so many export markets are coming onboard now.

I was digging about their operating cash flow last few days and their receivables payables is now nicely balance 12/8 comparing to 9/14 but also CEO stated that in H1 "Our cash flow was negatively affected by a build-up in macadamia stock in both MacFarms and Agrimac. We have since sold the majority of our Agrimac inventory and are making headway in selling the MacFarms 2016 crop, anticipated at approximately 6,000 tonnes of nut in shell".

That means we should be in positive operating cash flow territory now in H2? If so, that should keep bankers away...If they record 1 mil npat in FY and positive cash flow then we should see 90c-1$? There are also apparently vertical integration opportunities... it all sounds like another capital raising if they find new opportunity e.g few Australian macadamia farms + opportunity to raise capital for debt repayment? Definitely very entertaining half for BUG now, hope they can turn in some small profit in H2. Long term hold if plans work out - at least 2020.