Regards CBH - Country Bird Holdings and its sudden drop even after stella performance, I re-viewed what info I could scratch to find out why the unusual sudden turn away. The only thing I can find is the last SENS news on its dividend stance change?. With reducing the share premium this should in effect reduce liquidity which in turn pushes up the share price (if Im correct?) but this is not the case. There is one major shareholder, to me that is the key!! I am aware negotiations are on the go for some time, but with such a large single shareholder is there a threat or possiblity of them proposing a delisting which may satisfiy reason for the sudden huge drop?. Any more news , comments would be interesting.
They posted a strong improvement for the second half ending June 2009, and if one thinks that maybe they had 4 months,at best, to lower feed prices, logic tells me that with the lower feed prices currently and going forward, the next 12 months should out perform the last by a long chalk.Beef and feed division may be a bit of a handbreak,as is the threat of frozen imports due to the Rand strength.At these levels I'm a buyer with a view of holding 12 to 18 months