ASX Shares Bega Cheese worth a buy? (BGA)

Discussion in 'Shares & Funds' started by Darlinghurst Boy, 26th Oct, 2016.

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  1. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    28th Jun, 2015
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    Location:
    Darlinghurst Sydney
    Bega Cheese has dropped dramatically from the $6 mark to low 5 's.

    For those into the ASX trading ... My question is ... Is it worth buying and what are the chances it shares could be suspended ?
     
  2. Mick Butterfield

    Mick Butterfield Well-Known Member

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    Location:
    Bermagui NSW
    A lot of talk on the soft dairy market and less than fantastic results from the partnership with Blackmores on the radio down here. Think it may go a little lower but I have not looked into it too much at the current price point.
     
  3. jhmtaylor

    jhmtaylor Well-Known Member

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    Noosaville
    Buy the product, safer bet $17.18 Kg at Woolies.
     
  4. spludgey

    spludgey Well-Known Member

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    18th Jun, 2015
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    Sydney
    Okay, this sounds ridiculous, but bear with me, many disruptors seemed like this before they eventuated.
    I think that the days of dairy products (potentially other than milk) are numbered. There are a few biohackers that are trying to genetically modify yeast to produce casein, which can then be used to make milk products that taste either identical or almost identical. Casein is the important part, the fats and sugars can be replaced fairly easily, so there are a lot of advantages:
    • Cheaper to produce
    • Less space required as no cattle is required
    • Lactose free
    • Vegan
    • Produces way less green house gasses
    • Healthier as unsaturated fats can be used instead of saturated fats
    • No need for arguments about animal welfare
    • Not nearly as rainfall dependant as conventional dairy products
    • Faster to produce

    Now, I don't really think that the people that I linked will be the first to the market, as they seem to do it as a hobby on the side rather than a full time job. But someone is going to crack it at some stage and given the reasons above, I think that it's going to be difficult for conventional dairy to be competitive.

    So if I was to buy shares in any dairy company, I would make sure that I keep my ear to the ground and at the first sign of dairy products that weren't produced by mammals, I'd sell the lot, even if I was down.