PDA

View Full Version : RIC. RIDLEY CORPORATION.



BRICKS
02-10-2006, 10:41 AM
THE COM Bank likes them and so does BRICKS.. [8D]

BRICKS
10-03-2010, 08:24 AM
THIS is an old file and been around a while with SNOOPY the star shareholder for NZ along with GPG but the company has changed not much and will not set the world on FIRE
but for the first time in five years it has NO ongoing hasseles to worry about and there tie up with Inghams for chicken feed is the GO it can now only move FORWARD...

Snoopy
10-03-2010, 10:35 AM
THIS is an old file and been around a while with SNOOPY the star shareholder for NZ along with GPG but the company has changed not much and will not set the world on FIRE
but for the first time in five years it has NO ongoing hasseles to worry about and there tie up with Inghams for chicken feed is the GO it can now only move FORWARD...


Yes GPG took a while to catch up to us didn't they Bricks? I have been a long term investor in RIC, but have only been increasing my holding to something of significance since 2002. My average entry price is $1.12.

For many years I was holding to take advantage of the expected upsurge when the long running 'mad cow feed case' came out of the courts in Canada. I was bitterely disappointed that once there was certainty around the legal case, Ridley cut their losses and quit all of their interests in the Americas. The bitter bill to swallow was the $52.4m writedown of those American assets which amounted to 17c per share. Yet despite this disappointment my average entry price is still more or less where the share is trading today. And there has been a steady steam of dividends, at well above bank interest rate returns, to keep me happy while I have been waiting.

The change in business strategy, refocussing on animal feed and salt in Australia, saw the departure of the rather dull MD Matthew Bickford Smith and the arrival of his replacement - the mind numbingly boring John Murray. Most analysts have dropped coverage of the company because it is so uninteresting. In fact, if I had to choose the most boring company on the ASX I can't think of a more suitable candidate. However, far from slandering the company those who follow my investment style know that I deliberately seek out the greyest companies that are most likely to be overlooked by everyone else. By that measure Ridley must be close to being an ideal investment, and I have put my own money on the table betting on just that!

The key to unlocking value from Ridley now, which is why I am still 'waiting' on the share register, is the property development potential of certain Cheetham Salt sites, after relocation of the salt business elsewhere. Specifically the Dry Creek salt field near Adelaide has potential for residential and mixed use development. In addition there is a 912 hectare site at Lara that may benefit from the recently announced expansion of Avalon Airport by the Victorian State government. Any update on the potential development potential of these sites would be welcomed from any Oz domiciled reading this forum.

SNOOPY

OldRider
10-03-2010, 11:13 AM
I have a few of these as well, roughly the same costs ,time scale, and reasons as Snoopy.
Dividend return last year calculated on share price on 31 March 2009 was 9.98% and total
return since then 79.87%, so dividend return will be rather lower this year.
Investment has shown a small positive return over the holding period, but sits in the top quarter
for year 1 April 2009 to date