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Thursday, October 6, 2016

Farm Pride...

Hi readers
Looking at FRM stock it's come back some what.
Question is why?
Well let's look at what's taken place over the last 12 months of the stock and the company.
1. The astrology hasn't changed so no need to worry on that front.
2. When we look at the business yes it's growing but at what rate.
3. Spring season is coming and I'm sure price pressure will squeeze margins somewhat but for how long as Xmas is just around the corner.
4. The management and board have had a free run with the top 20 shareholders farmers.
Farmers totally understand the industry and how it operates.
There are only 4 farmers left in the top 20 shareholders and now the board can no longer continue in the manner they have previously.
5. The chairman departed which is wonderful as I didn't think highly of him.
6. Farms from time to time will have set back, like infections to the birds or drop in production from aggressive climate changes. We need to understand that we are talking about livestock.
I like to make the comment that an outgoing chairman who has no idea of what's going on at there farms is a good thing...
His a numbers man nothing more, same with DeLacy his a numbers man.
Over the past 6 months I've been very critical of management and the board for there lack of vision going forward.
Example : instead of sitting in the office looking at the production/sales numbers, what Bruce should be doing is a road show exposing Farm Pride to the investment community.
Expecting investment funds to just buy the stock without understanding who the people behind the company is, is extremely lazy and foolish.
I fear the lack of responsibility which management has misunderstood in running a publicly listed company isn't a good sign.
Now with private shareholders on the register, information regarding actions undertakings need to be communicated.
Keeping silent and expecting the market to see value in the company is bordering on incompetence.



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