Stocks Down Under 11 June 2020: United Malts, GTN Ltd, SciDev
United Malt: Crafting a growth strategy
The timing couldn’t have been worse, but that just meant more upside for new investors. Back in April 2019, GrainCorp (ASX: GNC), the grain trading company, had announced that it was spinning out its malt business, but the demerger wasn’t completed until March 2020 at the bottom of the Corona Crash. No sooner was it listed but United Malt had to do an equity raising in order to strengthen its balance sheet. From there, however, we believe there’s a lot of upside. You see, the world is unlikely to stop drinking beer any time soon, so now is a great time to be a major supplier of beer’s principal ingredient, malt.
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