THE timing of his purchase last week of an extra 100,000 shares in Carbon Energy (ASX code CNX) was near perfect.
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Less than a week later CNX share doubled on the news the company had signed a memorandum of understanding for Photon Energy to set up a new solar power plant in Queensland.
Unfortunately, he failed to sell half his holding when they peaked at 2.6 cents.
He was too busy trying to work out whether or not to buy back into TasFoods (TFL) following the confirmation they have completed their takeovers of Nichols Poultry and Shima Wasabi.
The Punter, silly boy, had shunned TFL shares, partly on the grounds they needed to raise at least $25 million to do so.
But TFL did raise its money, giving it enough cash not only to complete the takeovers, but set aside enough for a new factory for Meander Valley Dairy, $5m for capital investment in Nichols, and $3m for marketing.
TasPlan, Tasmania’s major superannuation industry fund, has become a major investor. It now owns 12.19 per cent of TFL – that’s a significant gesture of confidence in TasFoods’ grand plans to become a leading Tasmanian food group.
Both Nichols and Shima Wasabi made losses in the past financial year, although both were profitable in the second half.
Gross margins are good in both companies – nearly 43pc for Nichols and 58pc for Shima Wasabi.
When TFL returned to the share market the price rose steadily to 33c, but the volume of trading was modest.
Given the general stock market weakness, The Punter has decided to watch TFL a bit longer.
• The Punter has no financial qualifications and no links to the financial services industry.
