Bull you are influencing the Stuff.co.nz journalism.
My guess is also downgrade.
To quote the article : "The statement prompted some speculation on share trading site Sharetrader that Fonterra might be preparing to announce a significant profit downgrade."
The Co-operative is reducing last season’s 2017/18 forecast Farmgate Milk Price to $6.70 per kgMS from $6.75 per kgMS. The previously announced 25-30 cents guidance range has been held but the Co-operative is indicating that it will be at or slightly below this range and it is likely that the full year dividend will be just the 10 cents already paid in April.
Not very clear is it. What a dog. It seems to me they stretch the milk price to be close to forecast and then penalise the shareholders.
Its not the first time they have screwed the shareholders and it makes the shareholders fund more like a charade. I imagine this will get hammered today.
goes the other one Nasi. they've reduced the price they pay farmers for milk (relative to forecast), so there is a little more return for shareholders (but not enough for a final dividend!)
they need a strong balance sheet ... to support the farmers next time commodities move against them
just goes to show they still a commodity business , there value add is a disaster they cant even get the synergies from the integrated model. what happened to them saying , our business enjoys lower cost due to economies of scale, integration, logistical and distribution advantages which enables us to pay steady returns to stakeholders.
Not very clear is it. What a dog. It seems to me they stretch the milk price to be close to forecast and then penalise the shareholders.
It’s not the first time they have screwed the shareholders and it makes the shareholders fund more like a charade. I imagine this will get hammered today.
I guess shareholders who bought into this fund deserve to be punished.
Never understood why anybody would want to buy into a fund where shareholders have no rights to pick or control the directors, and where said directors have as matter of course a huge conflict of interest. They are farmers and want a high farm gate payout, which is naturally bad for shareholders who want a fair dividend.
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"Prediction is very difficult, especially about the future" (Niels Bohr)
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