PGW - PGG Wrightson

[Doyle]

Yeah exactly, earnings were a little on the light side, but on the whole a solid result, and very much in line with expectations. They expensed the cap-raising costs which makes the bottom line look pretty small, but should really start to reap the rewards of a stronger balance sheet next year.

[Balance]

Yeah exactly, earnings were a little on the light side, but on the whole a solid result, and very much in line with expectations. They expensed the cap-raising costs which makes the bottom line look pretty small, but should really start to reap the rewards of a stronger balance sheet next year.

Some analysts were very negative that PGW will report a bad result. Brokers were getting clients to sell before the result.

Expect the real action to start after the analysts' briefing today.

[Dr_Who]

PGW multiples make ELD look too cheap.

[Bobcat.]

PGW multiples make ELD look too cheap.

I have been buying ELD over the past week on the expectation that PGW provide a healthy report today and they have. Taking into account the consolidation, I agree - @140c, ELD does look oversold. If it closes above 140 tonight, I would call it bullish. It's result is due any day now - yes? Last year, their result was out mid Feb.

...oops! this is the NZX thread, sorry.

[Balance]

I have been buying ELD over the past week on the expectation that PGW provide a healthy report today and they have. Taking into account the consolidation, I agree - @140c, ELD does look oversold. If it closes above 140 tonight, I would call it bullish. It's result is due any day now - yes? Last year, their result was out mid Feb.

...oops! this is the NZX thread, sorry.

Please enlighten us of your comparison.

What are the forward multiples the stocks are trading at? Are you using cashflow or earnings multiples?

[flyingfox]

I dont quite understand the equity-liability figures, where has the 200 million gone?

[Balance]

I dont quite understand the equity-liability figures, where has the 200 million gone?

???? It's all there.

[winner69]

I dont quite understand the equity-liability figures, where has the 200 million gone?

What don't you understand mate

What i can't understand is how can you sell so much (nearly $600m) and make so little ... when the worst year they ever had had was supossedly behind them

[Balance]

Please enlighten us of your comparison.

What are the forward multiples the stocks are trading at? Are you using cashflow or earnings multiples?

Bobcat has gone quiet.

Hope he has not been shooting from his hip?

[Bobcat.]

Balance,
Not so quiet. I have not done much fundamental analysis on this one. What I do know is:
a) a few farmers who are starting to spend more;
b) that the chinese company buying into PGW have made good investments before and are unlikely to buy a lemon (which this is not);
c) that their gearing (Debt to Debt+Equity) has improved;
d) that pre-reporting the bears ruled;
e) that it is now the bears who have gone quiet as the sp begins to rise (3.4% today and I estimate another 5% next week);
f) PGC shareholders seem to also like the report (their sp has also risen today indicating that the heavy selling may be over, even before they report)
g) technically, the sp has found good support at 58 and has bounced off nicely twice.

and there's more...but I got other work to do.
Happy trading.