Forum Archive Index - December 2001

["Wedde, John" <John.Wedde@weltec.ac.nz>]

Dave,
I also held these for a while some time back. Timed my entry perfectly and
made a tidy paper profit, but didn't take it, and ended up selling at a
small loss. Personally I don't think they're a good stock to be in at the
moment. Razor thin margins, commodity prices seem to be on the way down
again, management constantly changing, big ????'s over their China presence
[or have they opted out of that now?
Cheers,
John

-----Original Message-----
From: Sproul Family [mailto:sproulfamily@wave.co.nz]
Sent: Monday, 3 December 2001 09:31
To: sharechat@sharechat.co.nz
Subject: Re: [sharechat] Advice on AFF please


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
 
 


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