Just my Friday thought bubble. If I knew that my company was...

Just my Friday thought bubble.

If I knew that my company was suddenly a target for short sellers (as is the case for AACo since July 2015) and this had not been an attractive short previously what would I do?

The reason for the short sell was due to the transition to value add and the shortage of cattle to supply my processing facility in the second half of 2015. This put pressure on margins and caused us not to achieve the best value for our own cattle during that timeframe. We also had to pay a higher price for cattle to satisfy demand which was unexpected high for premium Ozzy beef.

This supply issue has now stabilized and the cost push margin squeeze is not an issue going into 2016. We have had to contend with a poor start to the year in financial markets which led to a fall in our SP along with short selling never giving our SP a chance to find its justifiable level.

We have sent out a signal to the Short sell that our numbers are looking satisfactory by buying shares in our own organisation. Ultimately we do not wish to be a company that is continuously a target for short selling as it leads to boardroom and shareholder dissatisfaction.

Having sent the signal we are attempting to set the scene in the market. Now we will follow up with results that confirm our signal and justify our purchase of our own shares as we can safely say to the market and any regulators 'I told you so'

Again just a hopeful thought bubble as to a possible strategy by management.