Agria had only a minority stake of 49%. I'am sure Mr. Lai has a good reason to sell. Perhaps they prefare PGW's seeds, or they see an advantage in Zhongdan 909. 2014 can be the turnaround for Agria/PGW
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Agria had only a minority stake of 49%. I'am sure Mr. Lai has a good reason to sell. Perhaps they prefare PGW's seeds, or they see an advantage in Zhongdan 909. 2014 can be the turnaround for Agria/PGW
There is some more information in the annual report text about the poor performance in South America.
AR2013 p11 "During the year we ceased operations through our joint venture livestock export business which led to a year on year decline in earnings."
"While we enjoyed particularly good growth in irrigation, competition in the animal health sector increased while turnover in the real estate market remains subdued with a gap between the price expectations of vendors and purchasers."
While as in New Zealand the poor result in South America is foreshadowed with the compensator 'good growth in irrigation', it would be interesting to know how much of the loss in profitability in South America was because of the end of the livestock contract. In New Zealand the operational side of the livestock had their profits halved in FY2013. Perhaps with a more normal climate year, there is a way back to worthwhile profitability in South America after all?
SNOOPY
Dear Sirs,
any News in the pipe für PGW ? I have seen large volumes for Agria on September 26th, highest volume since 3 month, and today highest volume since Februar.
Do you expect any kind of good news during the next weeks ?
The AGM is coming up in a couple of weeks. Since it is just down the road from me, I will probably go and let you know any new gossip!
It has been reported that millions of dollars worth of irrigation equipment are either being installed in Canterbury, or are on the water. This is all a result of the storm damage we had in Canterbury last month. The Pumping and Irrigation unit of PGW is headquartered in Canterbury so they may be getting some spin off. But Canterbury is very busy for new irrigation installations anyway. So even with no storm, PGW irrigation would not be short of work.
An upgrade to the Fonterra milk price payout over the last week may be helpful for PGW too. But milk farms are only one part of the agricultural businesses that PGW Agriservices deal with.
SNOOPY
PGW Directors.....Just received the docs for the Annual Meeting which includes the voting papers for directors. None of these folk seem to have significant experience in the agricultural world. I had, perhaps naively, thought that it would be a pre-requisite to have at least some board members with experience in the agricultural segment. To me this seems concerning....any comments ? Maybe I'm off track with this thought pattern and need some calibration.
I'm not giving up on PGW quite yet but am getting close to it, new blood could do good. I reckon the share price could still go up a little bit. I bought in at 0.450 back when i bought based on broker research and was hoping to break even. However if the share price drops to 0.370 i'll cut my losses and call it quits.
Agria(GRO)jump 30c to us$1.58 and over 1m shares traded today, what's up?
pump and dump? that's the gossip on a US stocks message board anyway
There are always people who make recommendations of selling or buying some stocks. But most of these recommendations for chinese stocks,are without any arguments. A discussion on Yahoo Boards
is very often with insults and without quality. When i remember last year, the discussion i had with them about "Agria", the only "argument" was :"All Chinese are scum". For my remaining shares i have 90% profit in the meantme.
For example:
http://finance.yahoo.com/mb/CGA/#mbt...c=mb-tab-topic
You can see the same user making himself, 25 times "thumb up". This so primitive pumping that you can conclude that his attention must be the short selling,
otherwise, how silly someone must be,who pays money for advices of " Investors Underground".
Agrias pump and Dump on Yahoo:
http://finance.yahoo.com/mb/GRO/#mbt...tc=mb-tab-allt
I can not find a single article of someone who is pumping Agria, all these puming accusation where frome 2011 and older. During the last 2 weeks i saw
large volumes on 0ctober 1th. I asked on October 2th, for advice on this board. It was a clear signal that something is going on. I have no idea if some is
buying because of good New's at PGW or maybe Agrias chines business.
Oct 11, 2013 1.54 1.54 1.39 1.46 408,500 1.46 Oct 10, 2013 1.23 1.60 1.23 1.58 1,083,200 1.58 Oct 9, 2013 1.14 1.28 1.12 1.28 99,400 1.28 Oct 8, 2013 1.15 1.20 1.12 1.15 15,800 1.15 Oct 7, 2013 1.20 1.20 1.17 1.20 39,900 1.20 Oct 4, 2013 1.16 1.24 1.15 1.23 17,300 1.23 Oct 3, 2013 1.25 1.25 1.18 1.22 16,700 1.22 Oct 2, 2013 1.19 1.22 1.11 1.22 117,100 1.22 Oct 1, 2013 1.10 1.25 1.08 1.20 376,800 1.20
Get rid of all those mums & dads on the sell side, cashing up for a meridian purchase then we may see this stock settle in the low 40's.
The flowing is a summary of highlights from the Chairman of the Board’s and CEO’s address, questions asked with some clarification from chatting to ‘the team’ afterwards. Following the AGM a new board member John Nichol ACA, a former director of the NZ Dairy Board and Chairman of NZ Merino is to be appointed to the board.
The separate ‘Agritech’ sub-committee is to be abolished. This was put in place to support George Gould who was more Agriservices orientated. With Mark Dewdney now at the helm, PGW is to go forwards on a ‘one PGW’ strategy.
Goals for the new “one PGW” business going forwards are as follows:
FY2014: EBITDA of $52m to $56m, driven by a better lookout for lamb and a record payout for dairy. No more large live export contracts have been acquired to date.
Longer term: improve profitability by 50%
Immediate areas of promise in NZ are the expansion of irrigation, with the whole “PGW Irrigation” business rebranded “PGW Water” and the expansion of domestic food and grain with sales of more maize supplement. PGW’s aim is to be the leader in ‘water’ going forwards. CEO Dewdney is not satisfied that PGW have captured their fair share of growth in NZs burgeoning dairy business.
The biggest success in South America to date has been with seed offerings. Uruguay continues to go well, with Brazil the next major market to focus on. Chile will continue to operate through agencies. Argentina is politically difficult, and the fear is that foreign companies’ outlets could be nationalised if the economy goes badly wrong.
Alan Lai has been elected the new chairman, replacing the retiring Sir John Anderson. Lai said that although much more restructuring and refocusing was required than expected, Agria remains committed to PGW for the long term. Agria remains optimistic with their PGW investment.
R&D is still critical to the seed business going forward and PGW have good partnerships with government agencies ‘Agrisearch’ and ‘Plant & Food’. This includes joint research and commercialising CRI research projects.
The pension scheme while still in an actuarial deficit, is forecast to get back on track without any further capital injections.
PGW are now out of finance directly, but all of the $25m Crafar farm exposure was recovered. The partnership with Heartland continues, and management realise the importance of the ‘one stop shop’ concept of supplying goods and seasonal finance as a package. New finance packages associated with livestock trading and deferring major purchases are in the planning stages. These might be rolled out purely with Heartland or some combination of finance providers.
A closing question on China drew a dual response from CEO Dewdney and Chairman elect Alan Lai.
Currently 10-20% of the wool clip handled by PGW goes to China, verses 50% on a national basis. PGW therefore sees some potential for boosting their share of the Chinese market. On a supply chain basis there is room for cutting costs by going straight to the manufacturing source in China and cutting out the middle man. The main cultivars going forwards that are important for future Agritech sales in China are vegetable seeds. Through recent seed company acquisitions in Australia, PGW now has more capacity in this area.
Alan Lai then added that China is some 20years behind NZ in agricultural technology. But the Chiness government is putting a lot of money into catching up, from the seed right through to the processing level of the food train. There is limited really good agricultural land in China, and PGW cannot be all things to all people. The geographic focus will be on the North West provinces with discussions going on with the senior governors administrating those areas. The focus will be on helping farmers achieve the best they can with their land. By 2060 1/3 of the population of China will be fed by imported goods. So there is good scope for improving China’s own food producing infrastructure.
SNOOPY
Nice prediction.
Not so good is, http://www.gisborneherald.co.nz/article/?id=34661
Only a small part of the country so far, but very early dry weather at an important time of the year.
Still like PGW as a brand and a company with much potential, albeit high risk.
A tip for all those investors with a bundle of cash from either selling out of chorus or making big profits from xero and ryman. "HERE'S YOUR NEXT MONEY MAKER" :)
A buy recommendation for PGW from the farmer on Queen Street? Why not just climb the Sky Tower with a megaphone and shout 'SELL PGW' to the masses? No need to answer that. Your way, you don't get bundled off in a police van while the result is the same.
I wish you had held off calling that top QStF! The market certainly heard though with PGW down 5% since your post. Don't blame me! I still own all my PGW shares, about a billion at last count. Then again I always got lost counting sheep.
The question I ask myself though:
" If I sell my PGW shares, where should I go for my rural exposure?"
There are plenty of great companies out there like Synlait and Fonterra Shareholders Fund. But they look very expensive and are concentrated in one sector (dairy).
To my mind while PGW is not the best company in the rural sector, it is diversified across many rural sub sectors and has growth potential in Brazil. Not pie in the sky stuff but the logical extension of a twenty year South American growth strategy. I am not in the market to buy any more shares at 41c, but I don't see myself selling at that price either. PGW the best value for rural sector investors is what I see in the share price.
SNOOPY
I am enjoying the pleasant share trajectory of REL on the unlisted market.