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Wexboy

  • 07-05-2013 11:57AM
    #1
    Fitz123
    Registered Users, Registered Users 2 Posts: 166 ✭✭


    Just wondering do any of you read his investing blog (http://wexboy.wordpress.com/) its quite well written and makes the topic quite humorous.

    He seems to be getting quite a following, as his last post was on Donegal creameries. In my opinion well written and a good breakdown of the company and potential prospects. Coincidence or not, Donegal is up 28% so far today, so not a bad move !!!

    http://www.rte.ie/news/business/markets/iseq/


Comments

  • #2
    Procyon
    Registered Users, Registered Users 2 Posts: 40 ✭Procyon


    I read the blog post and thought it would move the price but not by that much. It looks like about €100k worth of shares were traded, so not a lot in absolute terms.


  • #3
    lucky john
    Registered Users, Registered Users 2 Posts: 838 ✭✭✭lucky john


    Interesting read. I would be a bit more cautious on his valuation of MMM. They have been on a huge spending spree in the last couple of years. Not only have they spent over 50mil in canada and holland but they have spent plenty here two. They have built a state of the art new unit in monaghan and completely rebuilt a phase 3 yard in kildare. Not much change out of 10 mil there I would think. I can't see much of that from cash flow. I think his 7% margin on mushrooms is optimistic. They are a commodity and constantly on promotion in supermarkets. At one time monaghan had a huge grower network to take the pain of promotions and downturns for them. Now they grow most of the mushrooms they market. Any pain hurts them now too. Also compost sales would be a great earner in the past. They are their own best customer now.
    Mushroom sales has been cut troth for the last few 10 years. Buying the competition is monaghans answer to this. Long term it may work, as long as the debt doesn't get them first. When Donegal invested in Monaghan 10 years or more ago they dug them out of a big hole at the time. I wounder how much in dividends they have got back since then???

    The one thing monaghan have going for them is Ronnie Wilson. If there is one thing he knows is this business. He is a massive risk taker and lives for this business. He has tried to diversify in the past with poor results. I would be surprised if he would have any interest in a reverse take over at this stage. Like I said, mushrooms are his business.


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