Off to Siberia for a while to try and find some equilibrium to his balance.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
What’s up ..I think the main bit is that although we are winning we are going to lose money
“This significant achievement in strategic re-alignment, won’t be obvious in our financial result for the year ending 30 June 2019, which we now expect to be a loss in the order of $6m net profit after tax.”
The wording here is very strange to say the least so I did a bit of digging to see what they're really trying to say here.
In the interim financial statements they had a loss which was then reduced by the future tax benefit of that loss to give an adjusted loss after tax.
My read on this bizarre wording "be a loss in the order of $6m net profit after tax" is the real loss is forecast as approximately $6m / 0.72 = $8.3m loss ameliorated by the future tax benefit of such loss at 28 cents in the dollar of $2.3m.
Two things occur to me if my interpretation of their deliberately obtuse statement is correct.
1. I think this is a very disingenuous way to announce an expected loss. They really should simply announce the headline figure of ~ $8.3m expected loss.
2. The tax benefit only materialises if, and only if, they can make future profits to use up said loss and I no longer think that's anything like "a given"
I really do feel sorry for shareholders in general but any shareholder on here who hasn't already taken note of the many derisory posts of this company over recent times should be asking themselves why not ?
At best its abundantly clear this has all the traditional risks of an agricultural stock so any expected possible future maintainable profit needs to be seen in that light and an appropriate agri PE applied. No way in the world the current SP even after yesterday's decline is warranted.
Good luck to any remaining shareholders on here...you are really going to need it !
Last edited by Beagle; 07-05-2019 at 10:02 AM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Originally Posted by Ogg
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