Fonterra Shareholders Fund

[Filthy]

shareholders who want a fair dividend.

yes, and the historical divi's are all over the place. no sup or imp. and they fail the percy test. enough to make your eyes water.

FSF Divi's.JPG

[bull....]

they have had two downgrades now ... whats that saying about things come in three probably be with there china investment we all know how china works force a joint venture , steal the technology , transfer technology to another chinese entity and the new entity drives the joint venture partner out of business in china.

[Beagle]

I take it this means no final dividend -

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.

https://www.nzx.com/announcements/321997

How many staff have they got on more than 200K ? I suspect there's a huge cleanout required.

[bull....]

How many staff have they got on more than 200K ? I suspect there's a huge cleanout required.

so right probably so much duplicated overpaid roles and the companies probably to soft to do anything about it

[macduffy]

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.

So true. This is a co-operative, run by dairy farmers for the benefit of dairy farmers. Best to leave them to it.

[traineeinvestor]

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.

+1

I have never understood FSF's business model: when prices are high the increases (or most of them) get passed through to the farmers. When prices fall, a big chunk of the decline gets absorbed by the shareholders. Heads they win, tails we lose. At least that's the way it always seems to play out. Happy not to hold this one.

[macduffy]

+1

I have never understood FSF's business model: when prices are high the increases (or most of them) get passed through to the farmers. When prices fall, a big chunk of the decline gets absorbed by the shareholders. Heads they win, tails we lose. At least that's the way it always seems to play out. Happy not to hold this one.

Easily understood. It's a dairy farmers' co-operative, not a regular limited liability public company.

[whatsup]

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.

B P the real reason for the fund was that greedy farmers wanted as much money paid out to them each year ( so that they could buy more and more land ) but not leave any money in the company hence the company had either to get the money from the banks of some shareholder mugs, farmers are the cause as they are constantly producing more and more milk that the market is finding harder and harder to sell, imo they should be on a production quoter.

[whatsup]

.05 is hardly a down grade, grizzling farmers, imo .50 is a downgrade !!!

[BlackPeter]

B P the real reason for the fund was that greedy farmers wanted as much money paid out to them each year ( so that they could buy more and more land ) but not leave any money in the company hence the company had either to get the money from the banks of some shareholder mugs, farmers are the cause as they are constantly producing more and more milk that the market is finding harder and harder to sell, imo they should be on a production quoter.

I do understand why the Fonterra Shareholder Fund is good for farmers. They can eat their cake and keep it too.

However I do not understand why anybody would have wanted to buy shares of this fund - hey, and there are still people queuing up to buy them, though at a somewhat discounted price.

Holding these shares is a clear lose-lose situation. And even if we look at historic payouts (I think 30 cents per share and year) ... why pay $6 for a share providing a (not guaranteed) 30 cents dividend? this used to be just 5% (in good times); Obviously - this year is worse ... only 10 cents payout, but who knows - it might be still better than the next ;