So what is Dermot Desmond up to in purchasing a stake of more than 6 per cent in Golden Vale?
In most of his recent investments in Irish equities he has bought shares in second-line firms which appeared lowly valued on the market, often making a nice few bob from selling out later at a higher price.
True, he did try to take a more active role in Unidare - attempting unsuccessfully to block a US takeover. And then there was the recent mystery move in and out of Powerscreen shares, leading to conclusions that he considered launching a counter-bid to Terex and then pulled out when he couldn't round up enough shares.
Desmond already made a nice profit on Golden Vale shares. IIU, his investment company, may have made as much as £5 million when selling an 8 per cent stake in February of last year. He sold that holding when the share price reached 110p, having bought in the 55p to 65p range. He has now bought in with the shares again looking cheap, trading in recent sessions between 87p and 90p, although they gained ground yesterday in line with some rise in the sector.
Golden Vale is trading on a p/e on this year's earnings of around 7.5 - the average for the sector in the bigger British market would be around 10. It recorded reasonably strong interim results, with pre-tax profits up 11.2 per cent to €14.85 million.
Under Jim Murphy the outlook for the full year looks bright enough, with rationalisation of its butter and milk powder business continuing, in tandem with an expansion of its profitable foods operation.
The butter and milk powder businesses remain a drag on profit, however. There has been some speculation (most recently this week in a British industry journal) that the company might restructure, selling its milk processing operation - or merging it with another group - and concentrating on its profitable foods business. No doubt Mr Desmond will he happy if such speculation keeps the share price heading higher in the months ahead.
