The almond grower has had a difficult time in recent months, and it appears they are continuing to struggle after another downgrade yesterday. The company announced non-pareil volumes (which is their higher quality product) would likely be 25-35% lighter than expected based on early weighbridge data at their processing facility, just a month after reconfirming production at the AGM. While non-pareil accounts for around half of the company’s total production and some of the lower volumes will be offset by improved pricing, we continue to be disappointed with the company’s ability to manage any adverse conditions. Add to that the impact on the balance sheet, Select Harvests needs to improve performance otherwise it will be flirting with danger.
MM intends to cut SHV from the Emerging Companies Portfolio
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