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  1. #1
    ? steve fleming's Avatar
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    Default TFL - TasFoods (was ONC - On-card International)

    Looks interesting.....

    m/cap @21c = $4.4m

    Cash 30 June = $5.3m

    Net assets 30 June = $4.7m

    Yesterday announced the acquisition of an artisan Tasmanian premium dairy and cream products:

    http://www.meandervalleydairy.com.au/

    Announced appointments to the ONC board of:

    Rob Woolley - longstanding BAL chairman
    Roger McBain - husband of longstanding BAL CEO - Laura McBain

    Hugh Robertson rounds out a very impressive board for a $4m m/cap company.

    New directors/execs to put in funds at 21c and 42c.

    Read more about BAL/ Mcbains / Woolley :
    http://pubacct.org.au/chinese-export-bonanza/


    They have quickly turned BAL into a $600m company, (branded, organic baby food products), wonder what they can do with this cashed up little $4m company in terms of monetising premium "branded" Tasmanian dairy products??
    Last edited by STMOD; 17-07-2019 at 10:50 PM. Reason: Name changed 4 years ago!
    Share prices follow earnings....buy EPS growth!!



  2. #2
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    Default

    Welcome back Steve , I was a shareholder in Open country Dairy in NZ till it was taken over .....
    Personally I think the smaller companies can be a bit more nimble with supply etc , also quicker to market with new products / ranges . Be interesting to see how these guys go , the Fonterra example doesn't have a lot of friends at the moment ......

  3. #3
    ? steve fleming's Avatar
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    Quote Originally Posted by stoploss View Post
    Welcome back Steve , I was a shareholder in Open country Dairy in NZ till it was taken over .....
    Personally I think the smaller companies can be a bit more nimble with supply etc , also quicker to market with new products / ranges . Be interesting to see how these guys go , the Fonterra example doesn't have a lot of friends at the moment ......
    Hi S/L

    BAL has been the success story on the ASX over the last 6 - 12 months.

    Will be interesting if the team can now apply their BAL learnings / experience to premium artisan food products, leveraging the whole "brand Tasmania" clean organic image.
    Share prices follow earnings....buy EPS growth!!



  4. #4
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    Default

    Cheers for sharing Steve, looks interesting alright.
    Alot of potential with BAL managment involved.

    FY 2015:
    Meander Valley’s revenue: $1.34 million
    Net profit before tax: $0.11m
    Already profitable.

    22.5m shares on issue post acquisition. With a heap of proposed options to be issued to directors/senior exec's.
    10m options at 0.21c
    10m options at 0.42c
    They also said they were going to do a share purchase plan. So a bit of dilution ahead.
    Last edited by Wolf; 05-09-2015 at 03:10 PM.
    Not a recommendation or advice.

  5. #5
    ? steve fleming's Avatar
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    Default

    Quote Originally Posted by KW View Post
    BAL has been a top performer. But on the opposite side of the coin there is A2 - equally as successful product/market wise, and the share price has been in the toilet (barring the recent flutter on news of a takeover).
    http://www.theage.com.au/business/re...0150903-gje6kp

    The different performance of the two companies means that a company needs to do more than just sell a lot of dairy products. Heck, even Harvey Norman has now gone and bought a dairy farm!

    I would be interested in hearing your thoughts (SF) on what is making BAL fly while A2M sinks? And does ONC possess that magic factor?
    There was a fair bit of being in the right place at the right time for BAL, having said that, from the article that I referenced above, there has been a lot of groundwork in positioning BAL for overseas (China) expansion.

    Essentially, apart from a bit of product differentiation around the edges, they are offering what is a homogenous product. So BAL's competitive advantage comes from its brand positioning and marketing as a niche premium product. BAL is basically a marketing company. From personal experience, I know my wife happily buys plenty of BAL product, but walks past A2 products in the supermarket (different products I know).

    As for whether the success can be repeated, there is strong evidence that a team trying to replicate a successful endeavour second time round has a higher chance of failure, given they are likely to be overconfident, and have a tendency for impatience to lead to poor decision making. You would, however, hope that the learnings from BAL and the doors it will open will be significant.

    Whether they manage to successfully take "Meander Valley" or whatever organic, artisan Tasmanian brand they choose to go with, global is something that won't be known for some time. In the meantime, I look at ONC for what it is:
    • $4m m/cap
    • High profile board with plenty of followers likely to come on board
    • Trading below cash/ asset backing
    • Good cash balance
    • Low shares on issue
    • Directors who will put in funds at (21c) or above (42c) current market price
    • An interesting feel good story, in an attractive sector.
    Share prices follow earnings....buy EPS growth!!



  6. #6
    ? steve fleming's Avatar
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    Default

    http://www.theaustralian.com.au/busi...-1227516896181

    Milking the market

    First mining billionaire Gina Rinehart, then retailer Gerry Harvey via his Harvey Norman.
    Now logistics and stevedoring rich lister Peter Scanlon is getting in on the act.
    Everyone thinks dairy — whether it’s the cows that make the milk or the factories that churn the cheese — is the hottest investment in town.
    Scanlon through his private vehicle Taverners Group controls the listed OnCard International, which is spending $2.1 million to buy Tassie’s Meander Valley Dairy.
    It’s part of OnCard getting out of technology investments in favour of food, and since Scanlon did the dairy deal OnCard shares have almost doubled.
    Scanlon’s Taverner is run by Ross Burney, who used to work for Sir Ron Brierley at GPG and is on the OnCard board, along with broker Hugh Robertson.
    OnCard is also getting a new chairman in Rob Woolley. He chairs listed Tassie food group Bellamy’s Organic, which further highlights that food is where OnCard sees its growth.
    Bellamy’s boss Laura McBain describes Woolley as her mentor and to complete the loop in the small Tassie market, her husband Roger McBain, a Launceston-based partner at Deloitte, is also set to join the OnCard board
    Share prices follow earnings....buy EPS growth!!



  7. #7
    percy
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    Great to see you sharing your wonderful knowledge with us again.
    I have really missed you.
    Never die of boredom with any of your recommendations.!
    Always right on the money. I have made a lot money by buying shares you have mentioned on sharetrader.Again thank you.
    As you have pointed out "share prices follow earnings...... buy EPS growth" really works.So simple,so true.
    I brought a small parcel of ONC on Monday.So find myself ,as always "well positioned" to add to my holding, when they do a SPP .
    Last edited by percy; 09-09-2015 at 06:25 AM.

  8. #8
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    Default

    Yeh cheers SF, I really like the value add dairy space, and AUS has a decent domestic market so a "niche" company can do well without exporting. I picked up a few of these the other day so at the least I can get into the SPP - good spec play considering BAL links. Anyway just checked price - up 40% since I bought in, silly stuff really but I'm not complaining.

  9. #9
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    Default

    Yes SF genius stock picker you've done it again.

    Good heavens outrunning the bears by a mile.
    Last edited by h2so4; 14-09-2015 at 12:30 PM.
    h2

  10. #10
    percy
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    Quote Originally Posted by h2so4 View Post
    Yes SF genius stock picker you've done it again.

    Good heavens outrunning the bears by a mile.
    Absolutely incredible.!!
    Up 43.5% today.
    44.5 cents as I post.!!

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