To me , a board of directors who recommend a takeover such as this is a complete admission of their own incapabilities
Originally Posted by JayRiggs
I am thoroughly disgusted at Tegel and the board of directors.
Their IPO listing was at $1.55 in mid 2016. Barely 2 years later, Bounty Fresh makes their takeover offer at $1.23 and the Tegel board unanimously recommend shareholders to accept the offer. What a bunch of bloody crooks they all are. At their AGMs, they've mentioned "The Board continues its commitment to maximising long-term shareholder value". A complete failure of creating shareholder value!!!
Shareholders accepting the offer means anyone who bought into the IPO will sell at a capital loss. This is not in the best interest of shareholders and shows the board don't give a damn.
Ok I’m going to admit it - I’ve been a bear on this stock since the IPO because it was overpriced, everyone bought into the growth story on an unproven export market, low grain and transport prices. Despite this the shares were oversubscribed.
Have a look through this thread, lots of the bulls on this stock were accumulating at $1.68 without heeding warnings about oversupply or understanding about FMCG and how chickens are grown - there were even “informed” comment about how hormones were used to grow the chickens faster.
One post dismissed comparisons between Dick Smith and Tegel as the difference between a cut price retailer and a #1 food producer - I’d opine that Cadbury were once the Readers Digest most trusted brand as well but the performance of that brand has tanked compared to Whittakers because someone took that position for granted, Tegel isn’t dead but I find it astounding that folk thought a PE for a recent unproven IPO at 30 is okay but RBD at 25-odd with a much better recent track record is too expensive.
It’s a good case study on lots of people being convinced about this stock and the dogma - there’s even a post which I hope was tongue and cheek about low margins in the industry being a barrier to entry.
There’s a theory that once a human makes up their mind they will feel affirmed by any sort of news that they construe fits their paradigm or world view and dismiss the rest. Maybe like RBD after a while the stock could have showed value - certainly the Board of RBD thought so by hanging in there whilst resisting entreaties from PE firms and turned a $1.10 share around (although subsequently Tower dumped 10% at 0.55) to be the $8 share it is today. But we will never know because the Board have simply chucked it in - and I guess that really is the inditement of this whole sorry affair.
Funny ehh but in my experience, for the first time in a few years there was no cheap chicken at Pak n Save yest.
No specials on drumsticks or legs at Pak n Save but fresh whole 1.9kgs chickens at $9.99 each, and tenderloins at $10.49 kg.
But, there's Mad Butcher's drumsticks last week at $2.99 kg and this week, New World and the local meat shop have drumsticks on specials at $4.39 and $4.99 kg.
Be a long while before demand catches up with the supply Tegel & Ingham have put in place.
I really hope that wasn't tongue and check but because that comment is AWESOME.
My personal investment strategy is to buy shares under 50cents a pop because there is a lower ownership barrier to entry
That's not the same thing. The comment was essentially because Tegel and Ingham made @#$^ all that no-one else would be dumb enough to want to enter into the market compete with them. That isn't a compelling argument to want to invest in either of them.
And having penny dreadfuls that you can buy at under 50 cents doesn't guarantee any form of liquidity to a stock either. If you have BFW shares that are 66 cents currently, then the last time more than $15k of them shifted in a day was March (maybe) and before that January.
Originally Posted by JayRiggs
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