Forum Archive Index - December 2001

["Sproul Family" <sproulfamily@wave.co.nz>]

I held Affco for  a short time, and thankfully sold for no loss. 

 

The Chairman has been promising improvement for a while , but nothing yet.

 

In my opinion the company has fundamental problems that it seems unable to overcome under the present directors and management.  Any agricultural-based company that could not make money during the past twelve months has some serious problems. Compare Affco with Alliance, Richmond, Wrightsons , Reid Farmers, Williams  and Kettle, the milk companies - all had dramatic improvement over the previous year's results.

 

Pundits now say that the Agri boom has passed its peak, so does that leave AFFCO?

 

I am not certain that AFFCO even gave a legitimate reason as to why they were raising the extra cash - was it to provide "working capital"?  As a shareholder who has been told of the cost savings that were in train, I would be asking why they would need additional cash.

 

In answer to your question, someone once said that "the light at the end of the tunnel could be an oncoming train".

 

Hard as it is to do, I would be taking a loss on AFFCO and investing the proceeds in a company with brighter growth prospects.

 

Cheers ,

Dave

 

 

BEGIN:VCARD
VERSION:2.1
N:Sproul;David
FN:David Sproul
EMAIL;PREF;INTERNET:dsproul@corsairmarine.com
REV:20011202T201415Z
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