PGW - PGG Wrightson

[The BOWMAN]

Oh, PGW dropped out of the MSCI index, so overseas index trackers departed, now soaked up by NZ funds who saw the share as too cheap. That might be it.

Any of these "rational" reason doesn't quite explain the "irrational" behaviour. For whatever reason, if it could cause a 20% drop with a large volume. There should be another reason to push it back up 20%. For example, current CEO resignation countered by a new credible CEO found. Dropping out of MSCI causing a drop of 20%? and then go up 20% because it was too cheap? Doesn't stack up. And therefore I am saying no proper explanation? Something like a computer error or human error in placing trade order would sound more like a proper reason.

[Blue Horseshoe]

Good to see the buyers coming back after that market manipulation on Friday.

[Master98]

The CEO announced he is resigning. That's material.

what i can read from agria announcement are: 1. CEO leaving is due to the end of contract which at least one side dont want to extend; 2. the new CEO will be the supporter of agria to expand pgw globly.

[Hoop]

Can't rule out a big "Dead Cat Bounce" event just yet ....hitting the 29/30 ceiling (resistance) [another resistance at 32c] ... next week or two may tell the story whether last Friday 25c was an acute V-shaped bottom or not.

[stoploss]

http://www.stuff.co.nz/business/opin...rural-know-how

[Beagle]

Yeah, Chalkie sums up owners pretty well. I suspect that long time senior PGW mgt will steadily trickle out the door. Add this to the fact that they're competing against co-ops and PGW growth prospects are nil or worse. Time to book those losses folks and move on.

Some useful insights by Chalkie there and the chances of a full takeover appear to be extremly remote so I agree with your prognosis. I was thinking about dipping my toe in the water but won't bother after reading Chalkie's article. (I've never had any joy with Chineese controlled companies and doubt the result will be any different this time).

[iceman]

I am like you Roger. Have been watching PGW over the last couple of months with a view of buying a few. This article coupled with CEO resignation has put me off

[stoploss]

Yes, not good news on high volume and the trend will most likely be steadily down from here. She did a pretty neat little dead-cat bounce though!

was a good place for a stoploss

[macduffy]

I don't hold PGW but I wonder if the issue is one of the board personalities involved, rather than the ownership of the company. Two big egos there, hardly room for both on one board of directors!

[Newman]

Some useful insights by Chalkie there and the chances of a full takeover appear to be extremly remote so I agree with your prognosis. I was thinking about dipping my toe in the water but won't bother after reading Chalkie's article. (I've never had any joy with Chineese controlled companies and doubt the result will be any different this time).

Would PGW be in a better position now if Agria did not get control 2.5 years ago? I am deeply doubtful about it. It is easier to be a commentator. PGW's problem has its roots: those on top positions are too slow in adjusting the business as the external environment changes.

Further, I do not understand why PGW has hundreds of staff with a cost of >$100,000 pa. Does selling seeds and cows require extraordinary skills?

Do not blame Agria for any problems at PGW. Like everyone else, Agria needs a return on their investment on PGW.