PGW - PGG Wrightson

[traineeinvestor]

A good positive update, confirming that things are moving in the right direction.

Purchased at 41 cents today.

[winner69]

A good positive update, confirming that things are moving in the right direction.

Purchased at 41 cents today.

OMG - sub 40

Moosies warnings being heeded maybe

[RGR367]

OMG - sub 40

Moosies warnings being heeded maybe

Finally! Been waiting for 3 weeks to hit my buy price of 40. Just more sellers than buyers, I guess.

[Toasty]

Typical really. I watch for ages, read up a lot, see it survive the first negative dairy shock quite well and finally commit at 41 just in time for the second shock dairy price drop. So far I have made a small fortune on the share market, albeit from a larger one.....

[Beagle]

Buying opportunity when dairy prices head up again ? Trading cum a circa 2 cps fully imputed final dividend

[winner69]

Keith Woodford has penned a few interesting articles lately about PGW and Farmlands

He a good guy that Keith

Worthwhile reading both

http://keithwoodford.wordpress.com/2...htson-heading/

http://keithwoodford.wordpress.com/2...vices-company/

[BlackPeter]

Keith Woodford has penned a few interesting articles lately about PGW and Farmlands

He a good guy that Keith

Worthwhile reading both

http://keithwoodford.wordpress.com/2...htson-heading/

http://keithwoodford.wordpress.com/2...vices-company/

Thanks for sharing this. Very worthwhile reading. Makes one really wonder, where PGW is heading.

[Snoopy]

Thanks for sharing this. Very worthwhile reading. Makes one really wonder, where PGW is heading.

Keith's piece on PGW is an interesting historical oversight, but I am not sure that he has done justice to Mark Dewdney's current leadership. This is to expand organically with bolt on acquisitions into related areas like irrigation and avoid the past distractions of grand expansions. The fact that there is no obvious money to be made in China will have no effect on the growing business plans in South America. It is positive cashflow that Alan Lai is focused on and that is very good for small shareholders as well.

Pre the Farmlands /CRT merger the PGW retail stores were twice as profitable as the equivalent co-operative stores IIRC. Poor farmers may be better using the co-operatives. But rich farmers can buy PGW shares and enjoy a return far greater than any co-operative rebate.

Farmers have no reason to wish for the demise of PGW at the expense of co-operatives. For farmers all competition in the sector that supplies them is good.

SNOOPY

[percy]

4:10pm, 19 Jun 2014 | FORECAST

PGG Wrightson Trading Update

Chief Executive, Mark Dewdney announced today that PGG Wrightson (PGW) is forecasting that its full year Operating EBITDA* is expected to be in the $56 - $58 million range, slightly up on the guidance range indicated in February.

Mr. Dewdney said “The market and PGW’s trading performance has held up well in the past six months despite some localised challenges. The upper North Island saw another summer drought develop with farmers looking for rains to come mid-April. Just as this happened we also experienced a tough spell in the South with very wet and cold weather conditions challenging arable production and winter sowing activities.

In recent weeks the dairy forward herd sale contract settlements were transacted to close out the season for Livestock. This saw the Livestock business report a record month for May. Driving this was the large quantum of dairy forward sales transacted in May along with the increasing values in sheep and beef, and higher than forecasted auction cattle volumes yarded. With this busy period behind us we are now better placed to provide a guidance update for the current fiscal year.”

The company also announced that it had acquired a property company, AG Property Holdings Limited (AG Property) that owns a number of properties that are leased by PGW. AG Property collectively owns 40 properties that are a combination of retail stores, seed processing sites and livestock saleyards located across New Zealand. AG Property has no other assets, staff or operations and by acquiring the company, PGW obtains ownership of the 40 properties for consideration of approximately $30 million.

Shortly after the 2005 merger of Wrightson and Pyne Gould Guiness the company sold these properties subject to a lease back to PGW. Mr. Dewdney said “The decision to sell the properties was made at a different point in time, and the company now has a completely different look to its balance sheet and we are pleased to have been able to negotiate their acquisition.”

“The business continues to evolve and this gives us the opportunity to re-shape our property portfolio. A strategic review of the company’s property needs would be undertaken and some of the reacquired sites may ultimately be divested. The important thing is that this acquisition provides PGW with flexibility to review its property and lease needs and make decisions that are right for the business today and moving into the future.”

The transaction will see debt increase by a corresponding amount.

PGW expects to announce its full year results on 13 August 2014 with details of the announcement to be confirmed closer to the time.

I found this update a lot more relevant than Keith Woodford's overviews.

[winner69]

I found this update a lot more relevant than Keith Woodford's overviews.

Difference between 'overviews' and reading what you want to read only of course makes the PGW announcement more relevant (to you) eh Percy

Woodford did feel PGW that seeds as a standalone business (floating it off?) would be a beneficial proposition for shareholders. What you feel about that?

Good to see PGW making a bit more money this year. But they do don't make much do they.