MRG 0.00% 24.5¢ murray river organics group limited

5th street will be interesting ... book value is 6.4 million...

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    5th street will be interesting ... book value is 6.4 million .... their working assumption is the remedial work that has been done leads to a better harvest this year (after last years shocker) and gets them something closer to what was paid for it.


    Agreed on risk ... disagree on the timeframe they have to put things right ... even if they have a shocker they have 18 - 24 months before they even need to think about cash /debt issues. Does not mean they would be in a good place just means there are no pressures on them from a cash flow front. Some factors to consider is they have headroom with the bank, they can squeeze a bit out of inventory management (@ 2million is my guess) and in looking at the Dec period you are looking at the low point in the cashflow cycle on the farming side .... all expenses have gone out but none of the cash from the harvest has been received ... the delta on this last one is pretty large based on last years DVF harvest that would be @ 10 million .... this year who knows add or subtract up to 25% from that number


    In any event they need to convince some instos to buy in the market .... will be interesting to see if they (or Thorney) are able to convince any to do that .... I understand they are in Sydney next week doing just that .... having done Melbourne this week.

 
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