A director at Graincorp Limited bought 4,467 shares at 6.916AUD and the significance rating of the trade was 43/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clear...
The independent financial analyst theScreener just awarded an improved star rating to GRAINCORP LIMITED (AU), active in the Farming & Fishing industry. As regards its fundamental valuation, the title receives an improved star rating and now shows 3 out of 4 possible stars. With regard to its market behaviour, it remains unchanged and can be qualified as moderately risky. theScreener considers that these elements allow slightly upgrading its rating to Neutral. As of the analysis date February 8, ...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Today marked the first day of regular trading for Graincorp Ltd (GNC AU) and its Spinoff United Malt Group Ltd (UMG AU) after trading on a when-issued basis since March 26. We believe this separation paves the way to higher valuations for either company as they seek being taken over by larger players, though until that comes through they will continue to operate as leaders in their respective industries. Read on for more details on the value created on their first regular day of trading. Previo...
Following a complete company takeover offer and a suggestion from a "friendly activist" to break-up the Grains and Malts businesses, Graincorp Ltd's (GNC AU) strategic review concluded with the Spinoff of its malts business into United Malt Group Ltd (UMG AU), to separate next week (April 2, 2020). We believe this Spinoff simplifies any attempt to have the independent entities acquired by larger players in their space and provides the management control over the value in that potential takeover....
The Australian Competition and Consumer Commission’s, or ACCC's, push-back against no-moat GrainCorp’s planned sale of its bulk liquid storage business to ANZ Terminals would reduce our AUD 9.20 fair value estimate by about 6.5%, or AUD 0.60 per share, if the deal ends up not taking place. We noted after the original announcement in March that the divestiture’s price was a good deal for GrainCorp shareholders. The AUD 350 million offer implies a 13 times multiple to the segment’s expecte...
No-moat GrainCorp’s 10-year derivative contract to smooth earnings through the volatile east-coast Australian crop-growing cycle tightens its valuation range, but is a net negative for shareholders under our base-case scenario. The contract should help management plan for long-term capital allocation and asset utilisation rather than struggle with annual volatility, and we’ve reduced our uncertainty rating to medium from high. But we assume the company and its counterparty will see payments ...
GrainCorp's success in any given year hinges upon the weather, which lately has been frightful for Australia grain production. The business owns significant strategic grain-handling infrastructure along the eastern seaboard of Australia, with large market share in storage, handling, and port elevation services. The diversification into malt production, edible oil refining and processing, and bulk liquid storage reduces earnings volatility and provides new growth opportunities, but results in the...
No-moat GrainCorp’s 10-year derivative contract to smooth earnings through the volatile east-coast Australian crop-growing cycle tightens its valuation range, but is a net negative for shareholders under our base-case scenario. The contract should help management plan for long-term capital allocation and asset utilisation rather than struggle with annual volatility, and we’ve reduced our uncertainty rating to medium from high. But we assume the company and its counterparty will see payments ...
No-moat GrainCorp’s tough operating conditions have been well-telegraphed, and we’re encouraged by the actions to right-size its asset base and cost structure to capture greater benefits in a more-normalised operating environment. We maintain our AUD 9.30 per share fair value estimate, with shares screening as moderately undervalued. The first-half results featured challenging eastern Australian growing conditions, which led to diminished grain segment profitability, and higher input costs f...
No-moat GrainCorp’s tough operating conditions have been well-telegraphed, and we’re encouraged by the actions to right-size its asset base and cost structure to capture greater benefits in a more-normalised operating environment. We maintain our AUD 9.30 per share fair value estimate, with shares screening as moderately undervalued. The first-half results featured challenging eastern Australian growing conditions, which led to diminished grain segment profitability, and higher input costs ...
No-moat GrainCorp’s tough operating conditions have been well-telegraphed, and we’re encouraged by the actions to right-size its asset base and cost structure to capture greater benefits in a more-normalised operating environment. We maintain our AUD 9.30 per share fair value estimate, with shares screening as moderately undervalued. The first-half results featured challenging eastern Australian growing conditions, which led to diminished grain segment profitability, and higher input costs ...
No-moat GrainCorp’s tough operating conditions have been well-telegraphed, and we’re encouraged by the actions to right-size its asset base and cost structure to capture greater benefits in a more-normalised operating environment. We maintain our AUD 9.30 per share fair value estimate, with shares screening as moderately undervalued. The first-half results featured challenging eastern Australian growing conditions, which led to diminished grain segment profitability, and higher input costs ...
No-moat GrainCorp’s tough operating conditions have been well-telegraphed, and we’re encouraged by the actions to right-size its asset base and cost structure to capture greater benefits in a more-normalised operating environment. We maintain our AUD 9.30 per share fair value estimate, with shares screening as moderately undervalued. The first-half results featured challenging eastern Australian growing conditions, which led to diminished grain segment profitability, and higher input costs ...
No-moat GrainCorp’s tough operating conditions have been well-telegraphed, and we’re encouraged by the actions to right-size its asset base and cost structure to capture greater benefits in a more-normalised operating environment. We maintain our AUD 9.30 per share fair value estimate, with shares screening as moderately undervalued. The first-half results featured challenging eastern Australian growing conditions, which led to diminished grain segment profitability, and higher input costs f...
After months of relative silence, Long-Term Asset Partners has withdrawn its AUD 10.42 per share offer for no-moat GrainCorp. We were never convinced the two parties would end up together. Since its announcement, we had assigned the deal only a 50% probability of success, and moved the likelihood of completion even lower, to 25%, on April 4, following the announced demerger of GrainCorp’s malt business. Removing this probability leads us to revert to our standalone fair value estimate of AUD 9...
After months of relative silence, Long-Term Asset Partners has withdrawn its AUD 10.42 per share offer for no-moat GrainCorp. We were never convinced the two parties would end up together. Since its announcement, we had assigned the deal only a 50% probability of success, and moved the likelihood of completion even lower, to 25%, on April 4, following the announced demerger of GrainCorp’s malt business. Removing this probability leads us to revert to our standalone fair value estimate of AUD 9...
After months of relative silence, Long-Term Asset Partners has withdrawn its AUD 10.42 per share offer for no-moat GrainCorp. We were never convinced the two parties would end up together. Since its announcement, we had assigned the deal only a 50% probability of success, and moved the likelihood of completion even lower, to 25%, on April 4, following the announced demerger of GrainCorp’s malt business. Removing this probability leads us to revert to our standalone fair value estimate of AUD 9...
Following rumours in mid-March of a potential sale, no-moat GrainCorp has instead decided to divest its malts business, offering the segment in specie to current shareholders by the end of calendar 2019. We see minor value creation as a result of this transaction. We’re optimistic about the future growth in the malts business, and about the outlined AUD 10 million of pretax cost savings--about 5% of forecast fiscal 2019 EBITDA--from more-fully combining the remaining grains and oils segment. B...
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