ALF - Allied Farmers Limited

[couta1]

They have done well to get to where they are from where they were around 2008 so credit to them and worth a small hold IMHO ( That's 150k shares for me)

[Vaygor1]

The company states that diluted EPS= .65c. This equates to 1.3c for the full year.

I think the .91m you have quoted includes non-controlling interests? You should have used .708m?

I beg to differ. I think that the 0.91m excludes the 57% of NZFL's profit, which is not in ALF's consolidation. I'm open to discussion on it but it seems pretty clear to me from previous reports and this H1 appears to be no different.

[Vaygor1]

So they are still on target for BFG's 1.5c per share

Higher than that imho. See my last post.

This may be a stupid question, but is the company allowed to pay down their debt from the profits of the livestock division?

In its purest sense, No. But once NZFL's profit has been distributed to its shareholders, then ALF's 57% portion is as available to reduce debt as with any other income. Additionally, subvention payments at times may be made by the profit-making entity to the loss-making entity within the tax rules, as identified in last year's annual report. The profit to which the subvention payment relates offsets previous losses, potentially going back for years.

They did state that they had debt to pay down this half and they were looking at options. Does this mean a capital raise or a further selldown of their NZ Farmers Livestock?

I doubt that ALF will be selling down any more of NZFL. ALF's directors have already indicted they would seek some capital from existing shareholders if need be without going out to the general market. If none of ALF's options re acquisitions/mergers eventuate, then if anything, ALF could use any capital raised to buy back a greater share of NZFL.

[Vaygor1]

I dont know what report some of you are reading.......

ALF's asset management is a wind down of Hanover. it is not intended to be an active ongoing business. Quite the opposite. It's contribution (in past years, losses) will become zero in the near future, as planned.

14% sales growth in $ terms? Other companies would trumpet about this.

[Vaygor1]

agreed but this is mainly due to the livestock division........you know the one they are selling down to pay down debt...... the absolute worst way to grow a company is to sell down your best(only) performing asset.

To get rid of the CAML overhang was critical to moving forward for ALF. While CAML payment-on-demand existed, ALF's hands were effectively tied on any growth opportunities. In eliminating the CAML debt, ALF got a good deal too, equating to a 0.4 cents/share increase in equity.

[Joshuatree]

Really appreciate your sharing deep knowledge of this company Vaygor1. Thank You.

[Vaygor1]

I think the market is well aware of why ALF have a asset management division.

Then why your lengthy commentary yesterday on such an insignificant part of their business that is deliberately being wound down?

What you are failing to take into account is this 14% increase in sales is being compared to a period that had lower per head price's and that overall volume was not great.
This recent period, that has you trumpeting a 14% rise in sales value, had animals selling for 15-25% higher per head than the previous period. What this indicates to me is the volume through put was lower than the last period..........that is very disappointing.

If you read my post Snapiti, I haven't trumpeted anything about the result. Break it down however you like but 14% is 14%. Not sure why you are so disappointed… do you hold? I hold and I am not disappointed.

NZF have lost some top stock agents and they took their business with them to other companies.

And who hasn't? ALF have retained a great deal of their top stock agents. They are very loyal, as are those they deal with.

Those of you that think it was a good result need to look at the share price reaction.

SP reaction will be delayed, perhaps significantly. ALF is not being researched at all by Forsyth Barr and ASB Securities (or their agents). Don't know about the other instos but would be surprised if there was any current insto research going on. With NZFL outside the consolidation, the reported numbers can easily look more pessimistic to the average and even not-so-average punter than is actually the case.

[dodgy]

Then why your lengthy commentary yesterday on such an insignificant part of their business that is deliberately being wound down?



If you read my post Snapiti, I haven't trumpeted anything about the result. Break it down however you like but 14% is 14%. Not sure why you are so disappointed… do you hold? I hold and I am not disappointed.



And who hasn't? ALF have retained a great deal of their top stock agents. They are very loyal, as are those they deal with.



SP reaction will be delayed, perhaps significantly. ALF is not being researched at all by Forsyth Barr and ASB Securities (or their agents). Don't know about the other instos but would be surprised if there was any current insto research going on. With NZFL outside the consolidation, the reported numbers can easily look more pessimistic to the average and even not-so-average punter than is actually the case.

Hi Vaygor1
I agree with your sentiments. The road will be slow and hopefully steady. My only observation is that the current Governance and Management appears to have a far greater idea about "cutting ones cloth" to survive when compared to the bods (putting it rather politely) ,that didn't and continued through the Hanover deal.

Holding at present 250,000

[Vaygor1]

LOL.......share price reaction will be delayed ah...........pitty your shares are worth less than they were before the announcement.....nice try though.

The market has been open for a grand total of less than seven & a half hours since the results announcement. In addition to this, and on top of the issues I have pointed out, is the Speirs sell-off overhang.

Your latest response seems to have a tone of bitterness about it, and is directed more towards me than the subject matter.

I have been criticised by many during and since the time I purchased ALF despite the 400% gain in their SP to-date, and based upon the facts currently before me, I have no intention of selling.

[noodles]

I beg to differ. I think that the 0.91m excludes the 57% of NZFL's profit, which is not in ALF's consolidation. I'm open to discussion on it but it seems pretty clear to me from previous reports and this H1 appears to be no different.

Pg.10 breaks down profit by sector. NZFL is included in the 910K. It appears to be consolidated into the accounts.

Disclaimer: I'm not an accountant.