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 By the buy: a tale of two turnaround stories 

By the buy: a tale of two turnaround stories

27 Jan, 2010 08:37 AM
AWB and Elders are in many ways similar businesses. They have a national presence, are well-known brands and act as a one-stop shop for rural merchandise and services.

In recent years they have also been mismanaged and later hired new management teams who have carried out restructuring programs, according to the The Australian Financial Review.

AWB’s restructure, led by chief executive Gordon Davis, is farther along the track than Elders, which is being run by Malcolm Jackman.

RBS Morgans analyst Belinda Moore has a “buy” on both stocks, but she says an investor taking a medium to longer term view should look at Elders, because it has only just started its turnaround program and it will be two to three years before it delivers benefits.

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Gordon Davis has turned AWB into a basket case. Gordon's cliam to fame is that he and Brendan Stewart were able to hood wink wheat growers into relinquishing their A class share which gave them control of the company which was set up to market wheat on behalf of growers.
Posted by Realist, 28/01/2010 6:17:27 AM, on The Land
At this point the only ones making money are 1. the high priced consultants who seem to just change the company banner and sell the same concepts. 2. The middle management staff who seem to be first blamed for prior mismanagement and then re-employed by the other competing pastoral house. Shareholders and those loyal branch staff of both companies appear to be very much taken for granted rather than valued. Ring up and try and get a decent price as well as supply of any needed agchem or fertiliser. Both are now found sadly performing with local staff taking the brunt of pressures to satisfy new keen management. The much trumpeted "ask the producers what the want " is much more a laughable marketing exercise in telling the customer what management think they want. Go to Market is reflected in the Markets share price!!!
Posted by realist also, 28/01/2010 9:05:29 AM, on Queensland Country Life

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Elders chief executive officer Malcolm Jackman.
Elders chief executive officer Malcolm Jackman.
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