Market's view on Camellia
Published on April 2024
- Stock watchers express concern over the strategic decisions made by the management of the company, especially regarding the Bardsley acquisition which is viewed as disastrous.
- Concerns are raised about the potential misuse of funds obtained from asset sales, with fears that the money might be reinvested into other risky, low-to-negative margin agricultural businesses.
- There is a suggestion that the company should focus on repurchasing shares with the proceeds from asset disposals, particularly from BF&M, to consolidate shareholder value during times when market prices are low.
- There is frustration over the lack of clear communication from the company, with one stock watcher highlighting that recent announcements lack substantial updates on investment strategies.
- A critical view is shared about the company’s dividend policy, noting the lack of growth despite a significant cash balance.
- The decision to sell profitable segments of the business, potentially leaving behind less profitable parts, worries some stock watchers.
- Discussions cover the management’s alleged ineffectiveness, with one watcher labeling the company a “basket case” and criticising the management for overpaying themselves while the company struggles.
- There is mention of the company’s operations concerning Kenyan avocados being exported to India, questioning the strategic direction of the company.
- Overall, there is a pervasive sense of dissatisfaction with the management’s strategy and decision-making, fearing that these could lead to further financial instability.