Fonterra Shareholders Fund

[winner69]

MGC and FSF are similar in nature. MGC was priced at $2.10 at IPO, and has dropped more than 50% in less than a month. FSF has always been traded above its issue price of $5.5.

It was only a few months ago when the crap happened at Fonterra many commentators/eperts were saying that Fonterra should model themselves on tht successful Australia co-op Murray Goulborn

Seems not all right at MG and they essentially in the same position as Fonterra and unhappy farmers with low payouts

Mind you Fonterra not doing that well in Aussie - losing more than $200m a year some reports say and tahts before they really piss of the farmers by reducing the payout to meet MG

[Sideshow Bob]

Indeed W69, Fonterrible not popular in the West Island:

http://viewer.zmags.com/publication/...d#/d40fa03d/24

[kiwidollabill]

$200M loss is correct....

[kiwidollabill]

http://www.nzherald.co.nz/business/n...ectid=11647295

I once had an American businessman ask me why we put a Dutchman in charge of our biggest company....

[bull....]

http://www.nzherald.co.nz/business/n...ectid=11647295

I once had an American businessman ask me why we put a Dutchman in charge of our biggest company....

you know anyone better?

anyway this is good news

http://www.stuff.co.nz/business/farm...arket-overhaul

[Nasi Goreng]

Anyone buying? Potentially a 10% dividend stock this year (50 - 60c per share forecast).

Despite all the noise created by Fonterra, they seem to be getting back on track albeit slowly. Has it been oversold? I got some a few weeks ago, a toe dip rather than a big plunge. Looking forward to some nice divi's with DRP potential.

[BlackPeter]

Anyone buying? Potentially a 10% dividend stock this year (50 - 60c per share forecast).

Despite all the noise created by Fonterra, they seem to be getting back on track albeit slowly. Has it been oversold? I got some a few weeks ago, a toe dip rather than a big plunge. Looking forward to some nice divi's with DRP potential.

Well, yes, might deliver this year a good divvie. What keeps me off from buying this share are 2 things:

1) Fonterra is a dinosaur - in my view bound for extinction. They don't care about customers but see their justification in taking milk from farmers and turning it into milk powder. Than they may or may not sell the latter with profit. Sure, they may have better and worse years, but in the long run I don't see them succeeding unless they totally reinvent themselves - and until this happens I don't want to be a shareholder who has to pay the golden handshakes for all the expensive drones warming the seats around the board and the management team.

2) Highly unfair board structure. Shareholders have no say on the composition of the board and no real representation at the table, unless they happen to be milk farmers. In this case they do have board representation whether they are share holders or not. This ridiculous structure means that the board has a conflict of interest ... and if the interests of share holders and farmers are not aligned, than it is easy to see which side will win ... and this is unlikely to be the shareholders.

[bull....]

a good read - just goes to show Fonterra is very small player in global context of things just a price taker really

http://www.bloomberg.com/news/articl...uled-the-world

[Nasi Goreng]

Thanks for the link. They need a new CEO... rightly or wrongly, he has steered the ship in the wrong direction for too long. They need some fresh blood and a good 10-15 year plan plus support from government. There needs to be a balancing act of risk given how many shareholders and how much the NZ economy depends on this one company... it can't be easy and its why the smaller players like Synlait and others will run rings around Fonterra in the long run.

Despite all that, I have a small FSF holding and consider it to be reasonable value at these levels that will pay good dividends.

[macduffy]

a good read - just goes to show Fonterra is very small player in global context of things just a price taker really

http://www.bloomberg.com/news/articl...uled-the-world

Yes, a small player in the value-added product market but the biggest supplier of commodity dairy products. Its all been said before - the owners (farmers) are incentivised to produce more milk, not to see the company succeed as a leading marketer of high value products.