Ridley Corp today hit a new year high. It's been holding up well during the last 2 months of market carnage, its SP barely moved. It's has been trading on sideways between $1.05-1.20 in 2007. Today it breaks resistance bound to hit new high.
RIC has been under constant attack for the past two years : BSE, foot & mouth, Canadian lawsuits, hurricanes in the US, drought in Australia, surges in input costs, and adverse currency movement all detract substantial amounts from profit.
Positive news that re-rate the share last week is that the Canadian BSE law suit has been settled (which has been a drag for the SP so far). The drought is clearing up, and potential break-up of the company.
In contrast to other companies that reported 50% increase of profit and got smacked 20%, on Monday 11/2 it reported 30% drop in net profit, but market seems to like it, and the share moved up 10% since.
Also look at the substantial holder list. Many well known value investors on its register, Maple Brown Abbott, Dimensional Fund Australia, Lazard Asset Management, Investor Mutual.
I have been a holder of this company since late 2005, hopefully my patience will soon be rewarded.
This is a good fit for a defensive holding in your portfolio in the current turbulent market.