Profittrader your analysis of the fundamentals of AAC are a little inadequate for my mind. So lets rehash:
1. AAC is an agricultural land play. TIM might well hold land but without allocations in the future their land values are actually at risk of deflating. Also deflationary pressure from the loss of MIS benefits since they underwrote the high prices originally paid.
2. AAC is a low cost producer of an agricultural commodity. TIM is not.
3. AAC has water security. TIM does not have any for its food production enterprises.
4. AAC is mostly a pasture based production model and hence is one of the lowest cost meat producers in the business. Meat prices are appreciating where AAC's cost base is not. Grain feeding is a small component of their operation especially given they have their own fodder and grain production options as well.
5. AAC is a ripe takeover target. TIM has valuable assets but the net agglomeration is complexly loaded with debt and being a ponzi scheme should the money stop flowing in, the money will stop flowing out. AAC has a good honest cash generating business model. KISS
TIM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
