Wellard shares were hammered this week as the company announced a serious profit downgrade (8.4% on its prospectus forecast). A $10000 investment in the company’s float would now be worth little more than $6000.
Why the profit downgrade? A few reasons but they include having engine failures on two ships. Yep the shareholders (and sponsor brokers Deutsche, UBS and Morgans) are now facing some of same risks as the animals from which they profit.
As Keniry (2004) said, it's an inherently risky business.
Ref: The West Australian 2nd March 2016
After Alison Penfold (CEO of Australian Live Exporters Council) submitted her promotional piece to the global maritime new site Splash 24/7, VALE were also invited to comment (thanks Splash 24/7).
VALE pointed out some fundamental flaws in Penfold's piece including the misinformation that a veterinarian always monitors the animals onboard.
VALE also supplied photographs that more accurately represent the onboard situation for cattle and noted that the industry always use photos of sleek, standing Bos indicus cattle for their promotional material.