PGW - PGG Wrightson

[noodles]

re upside ... the dairy payout down to 6.00 won't affect pgw?

It will affect pgw. They stated this in their conf call. However, it is a small part of their business that they are gearing up to grow. I guess it just won't grow as much.

[Beagle]

100% - obviously paid out as good balance sheet now with good bank support.

As I have mentioned before, there was too much focus and attention paid to PGW's major shareholder - not enough to the underlying businesses.

For those who bought at around 30 cents, enjoy the benefits from hereonin.

SP still needs some more upside though for Agria to do well.

Probably splitting hairs mate but perhaps worth noting that $42.3m represents EPS of 5.6 cps so payout ratio was 98% although they did make the point in the announcement that the final dividend includes a special dividend of 1 cps due to the extremely strong cash flows from operating activities of $54.8m (7.25 cps). (i.e. effectively they paid out 76% of operating cash flows).
I guess i'm just making the point that this sort of dividend is potentially sustainable going forward but perhaps investors would be more prudent to expect about 5 cps next year given 1 cent of the 5.5 cps this year is a special divvy.

[winner69]

Good to see that the pension fund shortfall has fallen $13m. Was a problem a couple of years ago when close to $30m. Wouldn't want to honour that liability in a hurry even though the underfunding is significant relative to the size of the fund.

Suppose all the old timers deserve their pension, after all they made the company.

[percy]

Good to see that the pension fund shortfall has fallen $13m. Was a problem a couple of years ago when close to $30m. Wouldn't want to honour that liability in a hurry even though the underfunding is significant relative to the size of the fund.

Suppose all the old timers deserve their pension, after all they made the company.

I think the pension fund's HNZ holding is helping.!!!?????

[Balance]

I must say, once the SP calms down and we get a better SP the Moose Fund may be interested in a short term hold here for a divvy and capital gains. Yield is looking pretty good now! Will keep an eye on her, haven't been interested in it in the more than 2 years since I ladt traded her...

Oh o - there goes the neighborhood!

[percy]

So ... In conclusion ... PGW is talking a big story (in the face of an economic downturn in their primary markets) and we should, based on their 100% pay-out ratio ... sell into the dividend (thereby avoiding tax which we can if we spin the "intent" story correctly) and buy back after their 100% pay-out (to pocket the capital gain prior to the next dividend announcement)?

Sorry, not fooled. This is a pump-and-dump tax dodge. Not a viable business

Yeah Right!!! lol.

[Beagle]

I must say, once the SP calms down and we get a better SP the Moose Fund may be interested in a short term hold here for a divvy and capital gains. Yield is looking pretty good now! Will keep an eye on her, haven't been interested in it in the more than 2 years since I ladt traded her...

I've spent a bit of time pondering if the SP is going to settle back a bit.
I was hoping it would and had a buy in the market at 41 but got to thinking.
1. Stock trades cum a great divvy of 3.5 cps and is ex very shortly on 26 August.
2. Based on ex stock price of 39.5 cps, (cum 43), you're paying a multiple of only 7 times last years earnings and the company sounds confident it'll grow current years earnings !!
3. Based on ex divvy price of 39.5 cps and assuming next year's dividend is 5 cps (fully imputed) PGW trades on a 2015 net dividend yield of 12.66%, gross of 18.9% for those on a 33% tax rate.
4. PGW beat the top end of market guidance.

I backed my own thinking by adding more today.

So why would it go back to 40 cps cum dividend....well let me put it this way, I'll be backing up the truck if it does

Worth noting, today's volume is more than 10 times daily average for this stock.

[BIRMANBOY]

Always makes me nervous when heavy selling prior to dividend......why wouldn't holders wait and take the dividend? Oh I know because they think its to their advantage to get out now....

I've spent a bit of time pondering if the SP is going to settle back a bit.
I was hoping it would and had a buy in the market at 41 but got to thinking.
1. Stock trades cum a great divvy of 3.5 cps and is ex very shortly on 26 August.
2. Based on ex stock price of 39.5 cps, (cum 43), you're paying a multiple of only 7 times last years earnings and the company sounds confident it'll grow current years earnings !!
3. Based on ex divvy price of 39.5 cps and assuming next year's dividend is 5 cps (fully imputed) PGW trades on a 2015 net dividend yield of 12.66%, gross of 18.9% for those on a 33% tax rate.
4. PGW beat the top end of market guidance.

I backed my own thinking by adding more today.

So why would it go back to 40 cps cum dividend....well let me put it this way, I'll be backing up the truck if it does

Worth noting, today's volume is more than 10 times daily average for this stock.

[Beagle]

Wrong, its heavy buying. Stock up 9% in one day

[BIRMANBOY]

Hah..LOL quite right half empty or half full. Good luck...I'm waiting for a lower entry but who knows how that pans out.

Wrong, its heavy buying. Stock up 9% in one day