Despite the lack of news from the company, it’s pleasing to see...

Despite the lack of news from the company, it’s pleasing to see the shares finding strong resistance around the 70 cent level. Over the past week I’ve noticed a large buyer soaking up any shares offered at 71.5c and below. Someone obviously sees real value at present levels.

Given Longtable had Net Assets of $55.6m at 31 Dec 18, the company is only trading at a small premium with the Market Cap presently hovering around the $67.5m level. Not bad at all for a company that is Cash Flow positive and should be making solid earnings from FY19 and beyond (without factoring in potential growth). Compare this to the huge premiums other dairy plays are trading at (some of which are years away from positive earnings) and you’ll see what I mean!

For those upset management haven’t put all their eggs in the Infant Formula basket, frankly, you’re in the wrong stock (at least in the short / medium term). Management have made in clear they’re focusing on the domestic market first with PC, and may explore Formula once the company is more equipped. Blackmores proved that IF isn’t always a road to riches..

In terms of the eastern seaboard rollout of Paris Creek, I’ve now found their products at every major Woolworths I’ve visited in Melbourne in the last month (Camberwell, Moonie Ponds, Niddrie & Balwyn for those interested). Earlier I couldn’t find it anywhere. I’d be interested to hear from those in NSW/QLD if you’re also seeing the rollout firsthand?

I think a lot of the ‘in-and-out quick buck traders’ are long gone leaving this one now flying under the radar once again. As I’ve said previously, this is a long term play which I think could handsomely reward those that are happy to be patient.

These are just my own observations. As always, do your own research.