National Foods Limited

By Intelligent Investor · 20 Oct 2000

By Intelligent Investor ·
20 Oct 2000

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National Foods Limited - NFD

Current price

n/a

Price at review

$2.33 at (20 October 2000)

All Prices are in AUD ($)

When a company like National Foods (not quite a blue chip, but a big name nonetheless) takes a dive as great as the one which it suffered in the middle of this year, then it behoves long term investors to pay close attention. We tried to be a little too clever for our own good in issue 62 (Speculative Buy closer to $1.60 - $2.09), because the stock never got even close to our target price. Nonetheless, the sentiment was right. Since then the stock is up a smart 11.5%, on news that the company is looking at throwing a bit of cash around in the consolidation of the dairy industry. It was no mistake that the company was cashed up to the eyeballs by the end of last financial year, with gearing at a derisory 15.1%. Also, Ian Langdon, the chairman of NatFoods arch rival Dairy Farmers, has been saying nice things about the company, such as that it has been treated unduly harshly by the market. NatFoods is again a SPECULATIVE BUY.

IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.

National Foods Limited

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National Foods Limited

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