tag:blogger.com,1999:blog-1061209502480568903.post6024883729316812117..comments2024-03-15T03:15:42.076+13:00Comments on Milking on the Moove by Glen Herud: Fonterras Trading Among Farmers Launches, But I Still Don't Understand ItAnonymoushttp://www.blogger.com/profile/15413783435112851071noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-1061209502480568903.post-58494793826478050142012-11-05T14:45:40.890+13:002012-11-05T14:45:40.890+13:00I agree, the Co-op is best for industry. I blogged...I agree, the Co-op is best for industry. I blogged about that http://milkingonthemoove.blogspot.co.nz/2012/08/co-op-vs-corporate.html But at what point does self interest rank above the good of the industry. It would be better for me to supply a corporate as I don't need shares, but if everybody did that then the industry is in trouble. I thought TAF was going to allow farmers to sell all their shares to the fund. But that's not so. Anonymoushttps://www.blogger.com/profile/15413783435112851071noreply@blogger.comtag:blogger.com,1999:blog-1061209502480568903.post-9192820817157289722012-11-05T05:17:38.468+13:002012-11-05T05:17:38.468+13:00Remember the underpinning value proposition of NZ ...Remember the underpinning value proposition of NZ dairying is our Co-operative principles. Westland is a Co-op with a nominal share price. If I was an original Westland supplier/shareholder I would be asking my board of directors what the cost of growth milk is outside of Westland, eg funding Canterbury growth and allowing the new suppliers in at the nominal share value. We consider Westland all the time. Without bagging individuals I will discuss non-co-ops as a general trend. They are not sustainable as most are finding out. The Chinese are probably happy to make less money as they are making it at the retail end and they are really trying to gaurentee food supply. Other privately owned compnaies are poor business models that rely on paying farmers less to make profits. This model is more than evident in its failing in other parts of the world that have lost their co-ops. Farmers become peasants to the supermarkets. If Fonterra shares were $20 and they were close to self funding I would buy them. Unless of course we loose control of the company (eg TAF going to far), that is a different debate.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1061209502480568903.post-39652584266911150202012-11-04T14:45:09.317+13:002012-11-04T14:45:09.317+13:00Good point, if the share price goes up then curren...Good point, if the share price goes up then current share holders stand to gain. Average Canterbury farmer would have an increase of about $90,000, if the scenario above takes place. But it means I need an extra $50k to buy shares when I start my 100 cows. Westland & Synlait looking more attractive. Anonymoushttps://www.blogger.com/profile/15413783435112851071noreply@blogger.comtag:blogger.com,1999:blog-1061209502480568903.post-59269095100011785652012-11-04T05:11:51.279+13:002012-11-04T05:11:51.279+13:00Glen
The investors in the fund do a basic calcula...Glen<br /><br />The investors in the fund do a basic calculation.<br /><br />32c dividend / yield divided by say 5.5% = $5.82<br /><br />This is the potential value of the units at that yield. A lower % pushed the price of unit up. These a blue chip stock as far as the market goes. So maybe people will accept a lower return.<br /><br />I will not be selling any shares to the fund. Even if we are viewed as high risk. There is a capital gain to be had and why give that to the fund.<br /><br />Enjoy reading your comments.<br /><br />Hamish D, MethvenAnonymousnoreply@blogger.com