Pinned straw:
Anyone done any research on RID or ever held their shares?
I came across the company whilst surfing with one of their employees during covid in 2020.
Ridley Corporation is an Australian agribusiness specializing in animal nutrition and feed solutions. The company produces and supplies high-quality feed for livestock, aquaculture, and pets, supporting sustainable food production. Ridley operates manufacturing facilities across Australia and partners with farmers, producers, and industries to enhance animal health and productivity.
I did some research and came to the conclusion that the business was just cyclical...beholdant to the agriculture macro issues (like drought, flood, changing demand etc.).
Look at the chart when I looked at it in 2020 (around 70 cents):
Then new management installed in about early 2020.
Now look at it:
I was thinking of trying to work out what they did to turn it around.
But im interested in what others think of agriculture businesses generally. I'm not familar with them so it would be a large learning curve. And there are some industires I will not touch. Like airlines.
What do people think?
@Parko5 I tend not to touch agri-businesses due to their cyclical nature, dependence on weather, complex supply chain, and susceptibility to what happens internationally (under-/over-production, commodity prices, wars, etc.). It is therefore a convenient sector for me to not have to invest time in to become sufficiently expert to invest. I also have little in my skillset or personal experience that puts me on a near level playing field with others.
So, it is as much about personal focus, and knowing my strengths, than a sweeping generalisation about the sector.
You say "And there are some industries I will not touch. Like airlines. "
Personally I have a whole list of sectors I won't touch (unless it's a REALLY compelling case) : Construction, telecoms, biotech, mining explorers, mining services (mostly - they're cyclical, competitive and capital-intensive), childcare, aged care, REITs, insurance, airlines, agriculture (they very rarely have decent ROE, and too many things can go wrong), fund managers, oil producers. Any suggestions for additions to the list? :)
