I can't see how an audit team can provide an unqualified opinion on the revenue recognition and balance sheet valuation of the plantations without a clearly independent and verifiable market value for the oil.
EY would surely be going into overdrive to cover ass over these allegations, although I doubt we the people will see any output from this
Personally, I topped up today at $1.32.
I am cautious as the contents of that report are very concerning and appear well researched, in particular in relation to the legitimacy of the forward commitment customer.
I believe the future risk around market pricing and yield variation are already priced in here. If harvests do play out as TFC have projected and can be sold at anything above $2,800/kg, the upside is huge.
We need some more detailed clarification from the company this week.
TFC Price at posting:
$1.31 Sentiment: Buy Disclosure: Held
