Punter's entire portfolio gets the once over

Punter's entire portfolio gets the once over

Agribusiness
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News that the RBA had cut the official interest rate to a record low was a glass half-empty event, and the Punter seriously considered selling just about everything.

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Bubs Australia (BUB), famous for its goat milk infant formula, has now launched an organic, grass-fed brand based on cows milk.

Bubs Australia (BUB), famous for its goat milk infant formula, has now launched an organic, grass-fed brand based on cows milk.

To the Punter, the news that the RBA had cut the official interest rate to a record low was a glass half-empty event, and he seriously considered selling just about everything.

Indeed his portfolio overall has dropped by nearly 4 per cent in a week. He has given all his holdings an extra hard stare.

Bubs Australia (BUB), famous for its goat milk infant formula, has now launched an organic, grass-fed brand based on cows milk. In a rising stock market, that news, coinciding with a strengthening of its ties to the Chinese market, should surely have boosted the price. Alas, BUB is down about 30 per cent over the past four weeks. The Punter has sold his remaining BUB before his profit disappears altogether.

Murray River Organics has spelled out the impact of the hotter, drier weather on its delayed but now completed harvest. The news, not surprisingly, is not good. The forecast loss for the year, before interest, tax, depreciation and amortisation, has been increased to between $3.7 and $4.2 million. In February, it reiterated an earlier forecast of a loss between $2.8m and $3.2m.

One positive is that it has 2327 hectares of vacant land ready for planting, and has recently been given approval to plant organic industrial hemp, mainly for the food industry, on at least some of that land. MRG's share price is barely half what it was in March, but it still looks like a recovery stock. The Punter has decided to hang on.

Roots Sustainable Agriculture (ROO) has been a disastrous investment, getting close to the point where his holding may be too small to sell. Yet its technology for keeping the roots of plants at the optimal temperature throughout the year seems to work. The company has only been on the stock market for about 18 months, and is only starting to generate revenue. Taking a huge breath, the Punter has bought another 15,000 ROO for $1135.

  • The Punter has no financial qualifications and no links to the financial services industry. He owns shares in a number of companies featured in this column.
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