AGRIA majority shareholder of PGG announced a share repurchase. It was a surprise today that AGRIA anounced the repurchase. But it is necessary, because of the 1$ listing requirement. We have seen 3 peaks in 2015, reach 1,7US$.
I expect 50% plus within the next 6 weeks.
http://finance.yahoo.com/news/agria-...114019046.html
I expect raising share price next week.
Yahoo shows earnings release on August 19th:
http://finance.yahoo.com/news/agria-...120000972.html
"Our solid and improving results increase our belief that the value of PGW is not fully reflected in Agria's share price. We believe the value of our shareholding in PGW is significantly above US$1 per Agria ADS, based on the recently quoted price of PGW on the New Zealand Stock Exchange. We believe we can resolve this valuation anomaly, due to our ongoing campaign to introduce the Agria story to leading US analysts and investment funds, combined with our ADS repurchase program."
I think they have a plan to bring the share price significant above 1$. Currently they are searching institutional investors.
PGG Wrightson trades on the New Zealand Stock Exchange under the symbol PGW. The most recent price (closing price on Thursday August 18) was NZ$0.52 (https://www.nzx.com/companies/PGW). With 754,848,774 shares outstanding as of June 30, 2016 (per attached financial statements), PGW has a market cap of NZ$ 392.5 million.
At today’s NZ dollar/US dollar exchange rate (http://finance.yahoo.com/currency-converter/#from=NZD;to=USD;amt=1), the USD market cap is approximately $285.9 million.
Agria Corporation therefore has a holding in PGW worth approximately $116 million, using the latest PGW closing price and latest NZD/USD exchange rate. With 55.383 million ADS outstanding, this equates to PGW estimated value of $2.10 per ADS.
Attachment 8240
Agria Announces Rule 10b5-1 Share Repurchase Plan
1 Comment
AUCKLAND, NEW ZEALAND--(Marketwired - Oct 6, 2016) - Agria Corporation ( NYSE : GRO) (the "Company" or "Agria"), a global agricultural company, today announced that its Board of Directors approved a Rule 10b5-1 plan that will implement the $10 million share repurchase authorization announced in June 2016. An independent U.S. broker-dealer is acting as the Company's agent to purchase its ADSs on pre-arranged terms pursuant to the Rule 10b5-1 plan during a period beginning on October 1, 2016 and ending on December 31, 2017.
Agria Executive Chairman Alan Lai commented, "We are optimistic about the outlook for Agria and our primary subsidiary PGG Wrightson, and believe that our valuation does not mirror this confidence. In fact, we noted on our fiscal 2016 earnings call that the net fair market value of our assets -- in particular our ownership stake in PGW -- far exceeds our current ADS price. Taking advantage of this valuation anomaly is one of several very attractive uses of capital for us."
Lai continued, "Our Board adopted the 10b5-1 plan in order for us to safely purchase our ADSs immediately and regularly. In addition, we are able to purchase additional blocks when financially attractive under the 10b-18 rule. Purchases have already been executed."
http://finance.yahoo.com/news/agria-...203626564.html
__________________________________________________ __________________________________________________ __________________________________________________ _
Agria has start it's repurchase plan. With 10Million US$ we can say it's a really big one.
Yesterday we saw a fight between short sellers and the broker. I think the victory is clear.
They sold 60% of the volume.
Nasdaq: 20161012|GRO|42669|900|75335
NYSE: 20161012|GRO|21070|0|28140|N
http://regsho.finra.org/regsho-Index.html
Today it maybe the last chance to get some shares below 0,9$. I guess that short sellers will make a shoot at the beginning of todays trading session.
But the pressure will raise. They have to cover soon.
During the last weeks Short sellers have sold more as before. We saw on Wednesday large volume 6 times daily volume. If they continue with their manipulation we can hope for a short squeeze.
I'm 100% sure that Agria will be valued above their fair value. They are the majority share holder of PGW. It must be embarrassing for the management.
http://ir.agriacorp.com/phoenix.zhtm...&p=irol-IRHome
They see their own fair value at 1.6$