Yes, I saw that too. Sellers are lining up but the buyers are already there for top $. Which side will turn out to have made the correct move ?, Time will tell.
Printable View
Touching $0.61 I notice
Best Wishes
Paper Tiger
Anyone read the First NZ Capital Securities Ltd – monthly outlook?
If you missed out. It's a 36 page analysis on the NZ/AUS sharemarket and the global economy by one of NZ biggest brokering firms.
They interviewed the CEO of PGW. These are the key takeaways (their key take-away's not mine)
Key take-aways
+
Mark has been moulded
by a variety of influences.
+
PGW’s key strength is
people – employees and
customers.
+
Technology is creating
risks and opportunities.
(my take-away)
Who ever produced this booklet should be shot
Is now a good time to get in on it? $0.61 is nice ramp in. Also call me dumb but is it NZX PGG or NZX PGW?? What's in a name?
Agree that 'The Dewd' is an astute CEO. My take is that the rise in share price has been because of the excellent growing conditions in NZ in any commodity you care to name. And Uruguay not have an extreme climate event growing season this year. The situation is the controlling shareholder, Agria, needs to suck all the cash they can out of PGW to service their debts. The good thing about this is that PGW have to be very careful with their deployment of their cash. The bad thing is that, long term, such a policy makes growth for PGW impossible.
PGW will remain a cyclical. And right now we are riding the 'up cycle'. I would dispute that a PE of 10-13 is 'normal' for PGW. Trading above a PE of 10 makes the price look high to me. But in these days of very low interest rates, a solid dividend yield can influence the share price. My take is that PGW is now near the top of its expected price range. The problem is, if you sold, and wanted to maintain your dividend income, where do you put the money? This is the reason that I haven't sold.
SNOOPY
discl: PGW shareholder, average entry price 42c
Well, well - 'The Dewd' is on his way out
New CEO next year