PGW - PGG Wrightson

[Balance]

The last 5.5m shares i think vultures will be quite happy to pay at "lowball offer" 35cps, or even 37cps after they got 40m at 29cps and 7.5m at 32cps.

OK result - no big surprises (which is important as market is fed up to back teeth with write-off after write-off).

Cash flow is outstanding and outlook statement encouraging.

Looks like the stock bought by those who squeezed Dodgie Georgie out at 29 cents has substantially been absorbed by others at 32 cents - nice 10% gain for them, courtesy of fire sale time at PGC.

[Master98]

a very solid result I think

[Balance]

No dividend I could see?

Buy now at 32 cents and get a 20% gross dividend yield 2 years from now?

I kick myself (hard) whenever someone mentions the 25% NET yield on RBD if you were brave enough to buy in 2009.

[Master98]

a very solid result I think

next year will be better after seeds ,grain and livestock business enter into china i hope.

[Balance]

next year will be better after seeds and grain business enter into china i hope.

Compared to Dodgie Georgie, George Gould has a pretty good record of delivering returns to shareholders even as he enriches himself.

Let's hope the Chinese and Maoris keep a close eye on him and on one another!

[Master98]

paying down debt is much important than paying dividend at this stage

[Master98]

Couldn't agree more! ... I think we'll see more of it in the next year with a small token divi. After that - a 50% payout will be pretty nice.

in three years time, pgw will distribute over 90% profit to shareholder i think, but not now.

[Agrarinvestor]

in three years time, pgw will distribute over 90% profit to shareholder i think, but not now.

Well done PGG-Wrightson. It looks like PGG has presented good results and i think we see nothing what can be interpreted as muddy waters ?
Can we say since Agria has taken over the board no bad decisions has been made ?
Can we say that the investments in Australia were good decisions ?

In a worst case scenario i asume that Agria itselfs earns 0$ in china (i don't hope so), but with its investment in PGG they have at least 50,2 % of the 25 Million NZ$
That means by a market cap of 49 Million US$ a P/E Ratio 0f 4. Keep in mind that Agria will report an increase in Revenue by 400% within the next weeks.
700 Million of Revenue for a 49Million market cap company.

[Master98]

well I make it earnings after tax of 3.2 cps which gives a PE of 11 @ 35 cents share price, good result, still alot to prove but a major improvement.
Dont think the share price will hang around at 35 cents to long.
Once short sited investors who were hoping for a dividend have sold their shares look for share price north of 40 cents.
I have put my money on it.

from related source, pgw Implied share price 43c, that is PE of 13, valuation of pgw is 444m, that is 59cps

[Snoopy]

from related source, pgw Implied share price 43c, that is PE of 13, valuation of pgw is 444m, that is 59cps

I have to admire the optimism of all you PGW celebrants. I think I must have been reading a different results announcement to what everyone else on this thread read. Agritech I though was a disaster. A PE of 13 is IMO not sustainable for a seller of agricultural commodities at the bottom of the world. Long term a PE of 6 to 10 is probably about as good as you can expect.

I have to admit to being surprised by the bounceback of Agriservices in FY2012. But what none of you have expressed is that this comes after the best year for farmers for some time. Dairy farmers probably did better in FY2008, but as a general overview this is about as good as it gets for farmers over the last decade. Since 30th June 2012 the NZ dollar has continued to appreciate while commodity prices have not. I haven't met anyone who doesn't think FY2013 will be a lot tougher down on the farm than FY2012. This represents a peak of earnings for Agriservices and the only way from here on in is downwards IMO.

SNOOPY