Cars and Cheese Week ending 30th Aug 2019

Welcome to my Friday dribble where we talk things agri sport and life.

Smelling a bit like a week old raw prawn is the TGR share price. Tassal came out with a solid profit result but decided they needed to raise $108m for capex on the expansion of the prawn business in northern NSW and QLD. The stock was trading over $5.00, 2 weeks ago. Now its $4.31. Probably good buying down here.

Also putting out full year results were BGA. The cheese maker has had a tough year but the addition of the Koriot facility in western Victoria has proved to be a huge winner for them and will generate big profits for the company as time progresses. Their contract infant formula making business is also booming. The only concern is the price they will have to pay to secure the appropriate quantity of milk.

The 3 listed car companies (which is about to become 2) brought out their results this week. It seems they have all adjusted well to the change in market conditions with lower sales volumes over the past year. It’s probably time to own them again as the worst seems to be behind them.

One crappy but expected result was CTX. I don’t often look at big cap stocks but having been on the road a bit lately and having stopped at the service centres at Eastern Creek and Wyong, it’s not hard to see why the company is struggling. At both centres they were understaffed, uncleaned and seriously rundown.

Still on big caps and the Wesfarmers CEO came out this week and said that things aren’t too bad and that there is way too much economic whinging going on. I have to say, I agree. As a nation we have been on a great wicket since the GFC and other than the drought, we really don’t have too many things to worry about.

Thank