WCB - Warrnambool Cheese and Butter Factory Company Holdings

Wow. Up 20% in 2 days.

Not a stock that many broker analysts or trading desks cover. Cheers guys

I think takeover speculation has re-started in the last few days, which might explain the price rise.

Murray-Goulburn's MD announced a fortnight ago that he would retire in July 2011 after the company disclosed $320,000 payments to a company owned by the wife of the MD (5/11/2010).

Murray-Goulburn's holding in WCB is diluted by the placement earlier this week (16/11/2010).

Then this article is released, indicating that Murray-Goulburn is still interested in WCB. http://www.investinaustralia.com/ne...rger-rival-warrnambool-cheese-and-butter-12i3

McCoy Pauley said:

I think takeover speculation has re-started in the last few days, which might explain the price rise.

Murray-Goulburn's MD announced a fortnight ago that he would retire in July 2011 after the company disclosed $320,000 payments to a company owned by the wife of the MD (5/11/2010).

Murray-Goulburn's holding in WCB is diluted by the placement earlier this week (16/11/2010).

Then this article is released, indicating that Murray-Goulburn is still interested in WCB. http://www.investinaustralia.com/ne...rger-rival-warrnambool-cheese-and-butter-12i3

Click to expand...

You could be right McCoy Pauley.

Considering that a kilo of Bega Cheese retails in North Asia for roughly $40. I'm sure both Bega and WCB have market delivery synergies in mind.

Good for the LT portfolio holders out there.

Dairy is a growing market in North Asia

http://www.weeklytimesnow.com.au/article/2010/10/29/251551_business-news.html

FONTERRA'S recent expansion of its Chinese fresh-dairy product operations could help increase demand in the Asian nation.

That's according to United Dairyfarmers' of Victoria president Chris Griffin.

"I suppose the demand for milk in China far outweighs our ability to supply it and I don't know if (Fonterra's new farm) will have a huge impact on our imports to China," he said.

"It may well just give them a better sample of our product and increase demand even more."

The New Zealand dairy giant last week announced it would spend $32 million on a dairy farm that will be developed on 42ha in Yutian County, Tangshan City, which is halfway between Beijing and Fonterra's existing farm in Hangu.

Fonterra's pilot farm at Hangu was established in 2007 and produces about 25 million litres of milk each year from 6000 cows.

The new farm, which will take about a year to build, will initially house about 3000 cows - imported from NZ - and will employ about 100 people. Fonterra expects the new farm to produce 25 million litres within three years.

Fonterra chief executive Andrew Ferrier said China was an important market for Fonterra.

"The fast-growing demand for dairy in China will be met by locally produced milk and we want to be working alongside the local dairy industry to help meet this demand," Mr Ferrier said.

On a sadder note however, it is quite sad and immoral that this man has been sent to prison for simply raising awareness and standing up for consumers of dodgy business practices.

China sentences milk-scandal activist to prison


http://www.monstersandcritics.com/n...ina-sentences-milk-scandal-activist-to-prison

Nov 10, 2010, 6:12 GMT

Beijing - A Chinese court on Wednesday sentenced an activist who represented parents of children made ill by tainted milk powder to two and half years in prison, supporters and rights groups said.

HUGE move today. Does anyone out there know why?

I wonder if Murray-Goulburn have bought more recently?

GumbyLearner said:

HUGE move today. Does anyone out there know why?

I wonder if Murray-Goulburn have bought more recently?

Click to expand...

News on delay

http://www.businessspectator.com.au...eese-and-Butter-pd20110119-D8HSK?OpenDocument

By a staff reporter

Warrnambool Cheese and Butter Factory Company Holdings Ltd has flagged an upswing in profit for the first half of 2011 as a result of stronger international dairy commodity prices.

The company expects a net profit after tax in the range of $35 million and $37 million for the six months to December 31, 2010, up from $8.9 million in the previous corresponding period.

However, Warrnambool Cheese and Butter warned that results for the half year are not necessarily indicative of the company's full year results, as retrospective increases in milk prices from July 1 may hit full-year earnings.

In addition, seasonal milk flow variations and local floods may affect full-year earnings, the company said in a statement to the Australian Securities Exchange.

Isn't it funny how the stock ticker codes of the ASX can be similar to the alphabetical listings of the white pages? Sometimes you have to read to the end of the book to find the good businesses/services

DYOR

Courtesy of The Standard
http://www.standard.net.au/news/local/news/general/wcb-profit-boost/2088997.aspx
WARRNAMBOOL Cheese and Butter has announced a half-year net operating after-tax profit of $36.4 million.

The result, announced to the Australian Securities Exchange today, is a $27.5 million improvement for the same period in the previous financial year.

The company said continued growth in global demand underpinned a 36.4 per cent increase in average dairy commodity prices over the equivalent period of the 2010 financial year.

The commodity price increases and effective foreign exchange hedging more than offset the appreciation in the Australian dollar.

Chairman Frank Davis said WCB had continued to take advantage of its market diversification, operational efficiencies and flexibility, and the improved international pricing.

"This compares very favourably against the $8.9 million net operating profit after tax for the corresponding period last year," Mr Davis said.
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Also note net debt gearing reduced from 49 to 19 percent. courtesy of the Bega deal. Good to see a doubling of interim dividend payments too.

Can't wait for the action in May.

Protein lift boosts profit

http://www.weeklytimesnow.com.au/article/2011/04/08/315341_dairy.html

by Simone Smith

A RISE in milk protein levels has equated to extra cash for a Western District milk processor and its suppliers.

Last week Warrnambool Cheese and Butter revealed the protein levels in its milk had increased 0.04 per cent during the past three years.

The milk WCB processes has an average of about 3.2 per cent protein.

It says this protein rise equated to about $400,000 in improved production efficiencies at the factory and up to $2.1 million for its 565 suppliers.

WCB suppliers have been paid between $7 a kilogram and $10.35/kg for protein this season.

The improvement has been put down to MilkPlus, a project aimed at increasing production of milk solids on farm.

WCB analyst and technical manager and project leader Adriana Robaina said farmers benefited from learning about better feed management, and the processor would be able to more accurately predict milk yield coming into the factory.

Dr Robaina said WCB had come up with a model with less than 2 per cent error when it came to predicting the percentage of milk based on history and seasonal patterns, and butterfat percentages based on history and rainfall.

A tale of 2 cheeses. I sold out of BGA when it was obvious the price was going to fall and didn't consider WCB as its price was not looking flash at the time.

Only recently looked at both again and set buy points with the off chance that BGA would take over WCB as had been rumoured for years.

Well WCB certainly broke out today, up about 30% based on the long awaited takeover by BGA. Too late.

Cheers
Country Lad

Saputo Confirms 52.7pc Stake In WCB

Canadian dairy giant Saputo has confirmed to the market that it has won control of Warrnambool Cheese & Butter Factory, as earlier reported by Business Spectator's DataRoom. In a statement to the Australian Securities Exchange, Saputo said its voting power in WCB had reached 52.702 per cent, up from 47.85 per cent earlier. As Saputo has passed the 50 per cent threshold, its takeover offer will be extended for another two weeks and its consideration will increase from $9 per share to $9.20 per share, meaning the offer is currently valued at $514.9 million.....

If you want to read the complete article, then click on the link provided:- http://www.theaustralian.com.au/bus...7pc-stake-in-wcb/story-e6frg8zx-1226807468338

Saputo now have 78.1% as of this morning. http://www.asx.com.au/asxpdf/20140131/pdf/42mdzr33y0cnh0.pdf
A bit sad that another dairy processor is now out of Australia's hands.

On March 10th, 2017, Warrnambool Cheese and Butter Factory Company Holdings Limited (WCB) was removed from the ASX's official list in accordance with Listing Rule 17.4 following despatch of the Notice of compulsory acquisition by Saputo Dairy Australia Pty Ltd on 27 February 2017.