ALF - Allied Farmers Limited

[golden city]

Dividends is good but growth even better

[mfd]

Shares on Issue Growth was 50% - wasn't it ?

What's the bet the Cash Divie will be 1.0 cps with imputation credits for next January ?

Remember ALF's resident goose only lays a small golden egg - and just once a year


No dividend from the Muddy Boots Management Outfit either for 2021, but plenty of Revaluation Hike Up's
on the turf recently added to the stable .. Good luck with eating the revaluation gains .. you're just stuck
firmly in place for the longer term up & down ride ..

No, shares issued increased by about 60%. Luckily, profits attributed to those shareholders increased by about 160% ($0.77 million to $2 million). That means my profit per share is up about 60%, and I got some cheap rights issue shares along the way.

Remember these accounts only reflect 1/2 a year of the new NZRMC income, but 100% of the share dilution. No dividend from NZRLC just yet, but they will be paying out in 2022 - another steady income stream adding to the diversification.

Onwards and upwards. If I was after huge dividend yields I wouldn't be here - happy to sit back and let the company grow. Looking back over the last few years the trend is pretty clear - 2020 wasn't great but is very much an outlier due to M Bovis, Covid and drought.

[nztx]

Dividends is good but growth even better

Is it ?

Meaningful Growth in both & spread risk over more than primary segment may be better

Remember - what goes up fast can come crashing down even further equally as fast ..

[mfd]

Is it ?

Meaningful Growth in both & spread risk over more than primary segment may be better

Remember - what goes up fast can come crashing down even further equally as fast ..

Surely you can't mean the share price - you'd be hard pressed to say it's gone anywhere fast. If you mean profits, the main reason for the huge jump this year is 2020 was a bad year. 2021 puts us back on the longer term trend of growing profits at ~15%.

Edit: I'll mention again the PE is still below 9...you're not looking at a high flying, overvalued company here. Solid, cheap, steady growth is the name of the game, with enough of a yield to keep you interested.

[nztx]

No, shares issued increased by about 60%. Luckily, profits attributed to those shareholders increased by about 160% ($0.77 million to $2 million). That means my profit per share is up about 60%, and I got some cheap rights issue shares along the way.

Remember these accounts only reflect 1/2 a year of the new NZRMC income, but 100% of the share dilution. No dividend from NZRLC just yet, but they will be paying out in 2022 - another steady income stream adding to the diversification.

Onwards and upwards. If I was after huge dividend yields I wouldn't be here - happy to sit back and let the company grow. Looking back over the last few years the trend is pretty clear - 2020 wasn't great but is very much an outlier due to M Bovis, Covid and drought.

61.3% - just seeing if anyone is awake

Drought, ALF's own livestock trading etc etc havent been wonderful for some time, as they admitted

The whole basket is still very rural / farming linked -- see a downturn in that - I'd say run a mile

But there have been all those wonderful one off Land buying rewards to offset the part year

Huge revaluations up for short period too -- Muddy Boots Management Co should be creaming it & stumping up
some sort of reward for those who got hooked on the Cap Raise rather than all sharing a smaller ALF pot

Currently not an ALF or NZL holder, have been - currently far better fish to fry elsewhere

Have seen what the worst of the times can do to outfits in the rural game in the past .. not pretty !

Need to see proof that the stack of cards is resilient enough to weather the elements, downturns & times
better than other more seasoned offerings are capable of doing ..

[percy]

https://sendy.tarawera.co.nz/l/J6oLV...eIolIWhw859g1g

[percy]

http://link.silverfernfarms.com/c/6/...tK32OXC7Y8_amg

[nztx]

https://sendy.tarawera.co.nz/l/J6oLV...eIolIWhw859g1g

Granted .. SFF would be the obvious more likeable target

ALF in it's own operations only clip the ticket on headage through / and any financing margins if they have interest in
herd funding. That aside from their Weaner ? trading ..

The overall stable however has peculiar resemblence to rural trading & property ownership

The latter with general propensity to seeing revaluation gains taken through revenue in many instances
hints to low tax paid / unimputed dividends and perhaps not the most generous dividends

Let's hope ALF see to it that they ensure there are reasonable returns in the bowl for stakeholders
and dont lean towards the meaner property company vision ..

All follow the fortunes of Rural Trading & fortunes can easily evaporate, as those landed with ALF
script many years ago would have learned from their fateful tangle with Hangover Finance
and being dumped into ALF's lap with bundles of low value 6c ALF dreadfuls received in return


$15 m in NZL Farm gains booked for such a short term ??
Were the Vendors blind, or were a couple of producing Gold mines discovered after purchase ?
How much of that flows through in cold hard Ca$h to ALF
How much left in the captive entities floating on the wild seas of Rural & Farm Ownership future fortunes ?

[percy]

PGW Chairman, Rodger Finlay said that “it was pleasing to be able to report that PGW has continued
to perform strongly over the second half of the year following an exceptionally good first half. The Board
is delighted with how the business is performing and is confident that PGW is well placed to be able to
sustain such performance based upon the sound market fundamentals for New Zealand growers and
primary producers.”

We know Silver Fern Farms are trading very well.

The sector ALF trade in is doing very well.
ALF is trading very well.
Making the most of the growth that is available to them.

[nztx]

PGW Chairman, Rodger Finlay said that “it was pleasing to be able to report that PGW has continued
to perform strongly over the second half of the year following an exceptionally good first half. The Board
is delighted with how the business is performing and is confident that PGW is well placed to be able to
sustain such performance based upon the sound market fundamentals for New Zealand growers and
primary producers.”

We know Silver Fern Farms are trading very well.

The sector ALF trade in is doing very well.
ALF is trading very well.
Making the most of the growth that is available to them.

Yes Agreed - at the moment
But it can change progressively from good to bad to worse on a seasonal basis.
Say for example - Drought - we know weather patterns are changing
There are cycles as well - Unfavourable changes can make sectors, industries
or regions vulnerable, as can diseases, market changes, difficulties in or
accessing markets, or lower cost economies coming onstream

but then many companies face similar risks
Some have reduced the risk or diversified

Others have increased their exposures & vulnerabilities (ALF fits in this category)

Anyone remember what happened to livestock & farming land values
in the 1980/81 drought ? .. that illustrates a certain set of risks

Some may remember the times of Government Livestock Subsidies paid out, SMP's &
NZMPB aka "The Meat Board' - particularly if they had involvement with the Meat Industry