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What happened to Flower?


Dave_vic_ozz

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In a perfect world

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Wingara Ag (ASX:WNR): Strategy Starting To Play Out

A few months ago we introduced you to Wingara Ag (ASX:WNR) - the emerging exporter of Australian oaten hay to China, Japan and South Korea. Yesterday Wingara announced the acquisition of an additional nearby processing facility - Pyrenees Hay Processing Co-Operative Ltd (PHPC).

 

This acquisition is significant for a number of reasons, not the least because it marks the beginning of Wingara's ambitious growth strategy in the export hay market. Firstly, the acquisition increases Wingara's production capacity from 50,000MT per annum to 90,000MT, with additional investment expected to expand capacity to 110,000MT over the medium term.

 

Secondly, it improves the company's security over supply estimated at an additional 40,000MT from the existing PHPC database. Since the acquired plant is located approximately 100km from the existing Wingara facility the hay can be processed at either location, providing improved efficiency as well as an alternative option given downtime at one of the plants. We also expect the cost savings from the acquired plant to be significant and note that Wingara management already have a demonstrated track record of improving the profitability of these types of businesses.

 

The export oaten hay market is attractive. China's dairy industry is growing and they are increasingly turning to Australian hay to feed their herds. The Middle East is now a large importer of fodder as they no longer grow their own due to serious water shortages (hay is up to 3x more water intensive than crops such as wheat, meaning more and more countries with water shortages will increasingly allocate their scarce resources to the latter while fodder will instead be imported). And the Australian dairy industry is experiencing difficult conditions meaning domestic hay prices and demand are likely to remain benign. Further opportunities for acquisitions and industry consolidation abound.

 

Wingara gave production guidance of 37,000-42,000MT of oaten hay for the coming year, right in line with our FY17 expectation for 40,000MT. That should equate to EBITDA of $3-$3.2m (ex acquisition related expenses) and looks attractive for a company in a net cash position, capped at $21m and with plenty of opportunities for growth.

Comment. There isn't even a Wingara WNR thread. C'mon Administrators!

 

Reply 1. Ripper find, mate

 

Reply 2: Small company. How are they going to grow?

 

Reply 3: Seasonal, and a commodity; what happens in a drought year. .....hence why analyse this way?

 

etc etc

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WNR had a big breakout of channel on Thursday on big vol. No trades on Friday and worth watching to see if it pulls back to top of channel this week. Seems to trade on small volume and may take time to accumulate a few.

 

How do you open a thread on WNR ? As the chart looks OK.

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When Flower and I visited TradeTech's seminars together, he was pushing 70.

That was 1999 - 2001

===========

arty

when i see the name "tradeTech"----it bring me back to the dot come days. they sell it over 10 grand plus monthly data fees, friend of my bought one and think it is grand master weapon can win the market. one years later he stopped trading. :weirdsmiley:

hope you and flower didn't buy it back then!!! :unsure:

you sure give me that flash back arty!! freaking how, time is flying, it was 16 odd years ago.........

 

 

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When Flower and I visited TradeTech's seminars together, he was pushing 70.

That was 1999 - 2001

===========

 

Hi arty---am certainly pushing 80 these days, to the poster who asked why I left, the answer is simple, banter is fine but venom was not.

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  • 1 year later...

Arty, still here having received my OBE, creak a bit more but what the hell.

 

Going way back when and having gone through every technical hurdle know to man, ie nothing to dialup, to live data, MA7, NBN, we move in the NY to non reliance on Java and all that entails with new trading platforms ......what do you make of Bourse Data as a replacement of MA7?

 

Yes still trade the gold sector, NST mainly.

 

This may be in the incorrect area but is intended as a generality.

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