I dont see how dropping out of the nzx 50would make the share price tank. Its just administrative. And traderjoe Im holding I cant deal with losing that much. I was going to free these up to buy PEB now I have to choose between selling SUM which i bought for 2.51 and DIL which I bought for 6.25 so havnt made anything off them but they both have good potential.
That result from Agria can only be described as dreadful. They are coming off one of the best calendar years in farming and still the losses continue to increase. Closer inspection of the result though indicates it is not quite as bad as the headline figure. The half year loss of $US60.2m included a one off loss of $US57.3m. So the real ongoing loss is only $US2.9m.
It is particularly disappointing that this loss on farmland leases has only been declared now, when the underlying cause of the loss, as a result of the 2010 sale of Taiyuan Primalights III Agricultural development, or P3A, which was formerly the company's main operating entity, should have been declared at the time IMO. It makes you wonder what else on the Agria balance sheet is sitting there grossly overvalued? The company has exited a 49 percent stake in Wuwei Ganxin Seeds also at a modest loss. Not encouraging, and the implications for PGW of having a cash hungry leach on the share register will be negative for PGW going into the future too.
SNOOPY
Last edited by Snoopy; 16-03-2013 at 04:48 AM.
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
This damn stock is going to give me a heart attack soon. Especially because I sold xero a 7.59 and bought this at 44c a few weeks back now its down to 36c. whats up with this damn stock.
Tosspot there is a whole different psychology with a share like PGW compared to XRO. Looked at from a 'Xero psychology' viewpoint PGW is darn cheap. The difference is that demand for PGW goods does not follow a straight line upwards and margins are much lower. You have to look at PGW in a more ;conventional' way. IMO it is still a little overvalued at 36c. Something closer to net asset backing is a more opportunistic buy in price I believe.
SNOOPY
Last edited by Snoopy; 15-03-2013 at 10:42 PM.
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
Snoopy can i asume that you would be full of awe if Agria has made money during the last half year ?
Yes I would have been. Unfortunately they didn't, just as I foretold. Losses for Agria have increased verses the prior comparable period.
Now Agria and all the other shareholder of PGW has received a small dividend out of an additional income that PGW has received (craffar loans).
This is a myth about PGW that has to be squashed. Look at the half year cashflow statement. PGW received $22.1m cash from a decrease in finance receivables. But in the same statement $28.5m in external borrowings were repaid. This indicates to me that all of the cashflow from the Crafar farms went straight into repaying debt. None was retained inside PGW.
Now look at the PGW segmental information. PGW rural capital (discontinued) lost $1.140m while finance (also discontinued) made $1.169m. Now sum the two. Within rounding error PGW neither made nor lost money as their finance book was wound down.
I conclude that overall the final repayment of the Crafar loans had no net effect, either good or bad, on PGW.
That in turn means that the declared recent dividend will be paid by just borrowing more money from the banks to do it.
SNOOPY
Last edited by Snoopy; 16-03-2013 at 04:45 AM.
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
i sold 60% of my holding, with a nice win. Honestly i hoped for a surprise in net margin. So i was wrong you was right. You have 4 Stars, and i am still learning.
But do you have an explanation about the high volume and rising shareprice during the last days ? Agrias share price is stable now. I have no explanation.
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Originally Posted by hilskin
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