I am disappointed with the trading update. There was no upgrade in cash EBITDA. The 5% to 10% increase from FY2015 is pedestrian. There was no comment on the MIS sales. This suggests no material increase.
It also raises questions as to whether the 28 June sale of the NT prospect occurred to boost cash flow and cash earnings for 2016 FY. Maybe the sale terms were not as favourable as they could have been.
Nevertheless, I remain confident over the long term and I am expecting an upgrade in valuation of the biological assets to provide a significant increase in the full EBIT for FY2016
It appears that once again I was too bullish on the stock and through a lack of patience my entry level is higher than what it could have been.
TFC Price at posting:
$1.42 Sentiment: Buy Disclosure: Held
