PGW - PGG Wrightson

[Agrarinvestor]

I have read that there is an audio conference available. Will they capture the conference ?

https://www.nzx.com/companies/PGW/announcements/225317

Is there an Impact of US drought for PGWs earnings ?

[Master98]

Is there an Impact of US drought for PGWs earnings ?

Milk power price already rose from Fonterra's dairy auction, because US drought .

[Master98]

Alas, so has NZD. .... Just need this underperforming puppy to fire so I can catch up to Liz in the NZX share comp.

Maybe you have to wait for a while until the blood 40m shares are absorbed by market,unless has a very good annual result and a dividend declared.

[stoploss]

Alas, so has NZD. .... Just need this underperforming puppy to fire so I can catch up to Liz in the NZX share comp.

http://www.nzherald.co.nz/business/n...ectid=10824351

[elZorro]

I don't recall anyone saying the SP would return to what it was in the good ol days. With more than twice number of shares since the offering its unlikely to get anywhere close. Do you know what PGW's main focus is? It's certainly not their stores. Where do you think RD1 buy their seeds??

Yes, PGGWrightson has made a lot of profit from their seeds business, in a trade channel. Makes up for the stores. Of course PGW runs the stores mainly for sheep/beef customers, and RD1 for dairy customers. When they do sell comparative product (don't forget CRT and Farmlands), they are at the mercy of the phone and the web. If the goods are over say $1,000 as an order, someone is going to be comparing prices. Unless they're crazy. And that limits the markup at the retail level. Limits it to about 10% average, which is not enough to run a profitable business.

The stores (any of them) don't generally add value to the goods they sell. So maybe the margins that they've ended up with are a recognition of that. It's just a pity that this also means that most productive capital items won't be in the stores, as the stock turnover rate and profit margin won't allow it. Suppliers of those kinds of goods have to do their own marketing in NZ.

It's my hope that one of the big rural supply stores (and a nationally based one would be best) will take the best of the locally produced items for the rural sector and showcase them properly, add value and not be afraid to take a decent margin. None of the manufacturers want to see their products sold off just above a trade price from an enduser enquiry. Farmers can profit by many times the cost of capital items as a general rule.

PGW trending down from $2.30 to about 30c...cripes, I may as well stick with GEL, there I have a chance for something impressive.

[Snoopy]

PGW trending down from $2.30 to about 30c...cripes

Not true elZorro. That $2.30 share price quote includes the right to buy 9 for 8 new shares at 45c which invalidates your bare figures comparison.

However your overall point that there has been a significant decline in share price, albeit less than half of what you said, is a fair point to make. Of course those of us who subsequently sold around half our shares into the Agria takeover offer have not been as badly hit as that.

SNOOPY

[Snoopy]

• Loan facilities denominated in RMB of RMB62.0 million ($9.6 million) that matures on April 7, 2012 provided by one bank.
• Loan facilities denominated in US Dollars of RMB369.7 million (US$57.2 million) that mature between January 23, 2013 and April 19, 2013 provided by two banks.

Perhaps Agria have until the end of the year to breathe after all?

The NYSE on 19th July has officially given Agria the yellow card

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Agria Notified by NYSE of Non-Compliance With Minimum Average Closing Price Listing Standard

Jul 19, 2012 (Marketwire via COMTEX) --Agria Corporation (NYSE: GRO) (the "Company" or "Agria"), a China-based agricultural company with operations in seeds in China and internationally and in agri-services, today announced that the Company was notified by the New York Stock Exchange ("NYSE") that the Company is not in compliance with the NYSE continued listing standard requiring a listed security to maintain a minimum average closing price of $1.00 per share over a consecutive 30-trading-day period. The NYSE noted that the minimum average closing price is the only listing criteria the Company is not in compliance with. The Company has six months from receipt of the notification to bring its ADS price and average ADS price back above $1.00.

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I would say this means the end of those smiling Chinese faces arond the PGW board table. The next board meeting they will be showing up in Kung Fu gear. Officially Agria has just over five months to sort their PGW investment out. In practice they are unlikely to go to the wire. I would expect PGW to be broken into two by Christmas. It is probably because of this anticipated corporate action that the price of PGW shares remains so stubbornly high. If Agria goes down I would be looking to picking up a few PGW at the receivership sale, for no more than 20c each.

SNOOPY

[Agrarinvestor]

The NYSE on 19th July has officially given Agria the yellow card

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Agria Notified by NYSE of Non-Compliance With Minimum Average Closing Price Listing Standard

Jul 19, 2012 (Marketwire via COMTEX) --Agria Corporation (NYSE: GRO) (the "Company" or "Agria"), a China-based agricultural company with operations in seeds in China and internationally and in agri-services, today announced that the Company was notified by the New York Stock Exchange ("NYSE") that the Company is not in compliance with the NYSE continued listing standard requiring a listed security to maintain a minimum average closing price of $1.00 per share over a consecutive 30-trading-day period. The NYSE noted that the minimum average closing price is the only listing criteria the Company is not in compliance with. The Company has six months from receipt of the notification to bring its ADS price and average ADS price back above $1.00.

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I would say this means the end of those smiling Chinese faces arond the PGW board table. The next board meeting they will be showing up in Kung Fu gear. Officially Agria has just over five months to sort their PGW investment out. In practice they are unlikely to go to the wire. I would expect PGW to be broken into two by Christmas. It is probably because of this anticipated corporate action that the price of PGW shares remains so stubbornly high. If Agria goes down I would be looking to picking up a few PGW at the receivership sale, for no more than 20c each.

SNOOPY

Hi, i am sure that Agrias management is not nervous to get the shareprice over 1$. Just look at he Chart and look for the jump in July 2011. I have watched the trades every day, since 3 month, the decline was possible because Agrias IR has not released any news and nobody pays attention to AGRIA.
But we all know that AGRIA as the mainshareholder have to consolidate the results of PGW in their earnings.
And if PGW is succesfull, Agria will benefit. On the other site you can not be sure that Agria will be fair to PGW shareholders, maybe you see some earnings were transfered to china because of cheaper taxes.
I have read in several sources that price for corn haas raised about 20% percents because of US drought. Will this also be true foor seeds ?
PGW has aquired corson, a austrailian based producer of maize seeds and Keith seeds also australian based. Does anybody know how much revenue will be generated out of this business ?

[Snoopy]

What is the impact of price development for livestock like cattles. Is it good for PGWs shareprice ?

http://www.nzfarmersweekly.co.nz/article/9392.html

Good question.

The only bit of rival "Allied Farmers" rural business to survive the Hanover hangover was the animal auction business. Perhaps we might take from that "Livestock Auctioning" is one of the more lucrative rural businesses to be in?

I would guess that an increase in livestock prices would generally be positive for PGW. The caveat to that might be that the reason prices went up was because of scarcity i.e. volume went down. Profitability would also be connected to total sales volume I would imagine. Little money will be made if livestock does not sell at all, when prices are really depressed.

The livestock auction system might be like the car auction system (a tenuous connection I know, but being a TUA shareholder I know a bit about how car auctions work). At TUA the are bands of commission depending on the price range of the beast for sale. It may be that a cow selling for $2100 will earn no more money for the livestock agent than a cow selling for $2000. Perhaps someone with a better understanding of how this works can confirm or deny my speculation?

SNOOPY

[Balance]

Good question.

The only bit of rival "Allied Farmers" rural business to survive the Hanover hangover was the animal auction business. Perhaps we might take from that "Livestock Auctioning" is one of the more lucrative rural businesses to be in?

I would guess that an increase in livestock prices would generally be positive for PGW. The caveat to that might be that the reason prices went up was because of scarcity i.e. volume went down. Profitability would also be connected to total sales volume I would imagine. Little money will be made if livestock does not sell at all, when prices are really depressed.

The livestock auction system might be like the car auction system (a tenuous connection I know, but being a TUA shareholder I know a bit about how car auctions work). At TUA the are bands of commission depending on the price range of the beast for sale. It may be that a cow selling for $2100 will earn no more money for the livestock agent than a cow selling for $2000. Perhaps someone with a better understanding of how this works can confirm or deny my speculation?

SNOOPY

The surprise may be Wrightson Real Estate division?