By Chris Hutching
Friday 22nd September 2000
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The share price has languished around the 80c level in spite of net tangible asset backing of $1.70 a share. Brokers said the company appeared to have hit the right note by selling while dairying was at a high in terms of payout expectations for the next two seasons.
Rural real estate agents met Mr Parker in his Dunedin office mid-week to review the sales programme and receive the information that he has been disseminating at broker presentations in recent days as part of the company's recent information blitz ahead of its farm auctions.
The company is forecasting net profit for the year ending May 2001 of $10.4 million. If dairy farm payouts reach $4/kg milksolids as forecast this would translate to net asset backing of $2.18 a share. A $4.50/kg MS payout would translate to $2.94 a share.
The industry is generally expecting a payout of around $4.40/kg MS.
The first six auctions have gleaned $18 million and galvanised values for negotiations with a number of under bidders.
Brokers expect more information from the company next week as it continues to cash up at the behest of major shareholder Brierley Investments.
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