PGW - PGG Wrightson

[winner69]

NBR's Shoeshine column ripped into PGW for corporate mismanagement, poor culture, and the shenanigans around Gould's departure last week.

Shoeshine doesn't think much of PGW and its corporate governance and shenanigans does he.

Don't blame him either and no doubt more to come out ....and monkey stuff that can be bad for shareholders (at least the minorities)

In spite of what Percy says things still not good at hq .....at least that's what I hear

Wonder if the accounting treatment of the silver ferns supply is working out to plan?

And the superfund shortfall seems to be getting bigger by the year ....must have a lot of older people looking to their defined benefits payout over the next few years - in addition to those already retired being supported by shareholdes

[winner69]

The rep that snapiti said was going to get the boot probably worked their for years and would have got a decent payout from the superfund .....or taken a pension so shareholders in a round about sort of way are still paying him

[percy]

That is sad to hear. I desperately want to see the NZ agriculture sector do well. It's hard enough dealing with weather extremes, currency swings and random events like PSA virus etc, but to have mismanagement and poor morale, well, we don't need that at NZ Inc.

NZ agriculture is doing well.Good management means PGW will do well when their clients do well.NZ agriculture is still developing from the family farm to company owned farms.We are seeing millions of dollars invested.With Asian middle class demanding more protein,NZ is "well positioned" to provide it.
Times change,so PGW and other suppliers must adapt.Gould brought leadership,resources , systems and support to PGW.This has relaid the foundations for a company to achieve it's place in NZ agriculture.
There are huge amounts of land in NZ that can be put to better agricultural uses.A lot more dairy conversions going ahead.Crop farming we are seeing the benefits of investment in irrigation.
The future is filled with opportunities for those who want to take them.NZ agriculture has a bright future.Turning water/grass into food must be the right way to go.Renewable too.

[Minerbarejet]

A lot of positive comment about Fielddays as well this year - seems our farmer friends are investing in machinery and farm supplies. I will know that things are picking up when I hear (if able to) topdressing aircraft at work in the area - usually a pretty good indicator. Unlikely to get two droughts in a row though I suppose anything is possible.

[winner69]

Shoeshine started his NBR column on PGW with this - A road built on hope looks better to the traveller than a road built on despair, even though they both lead to the same destination.

A bit philosophical for me but whatever it is meant to say it doesn't sound good

Maybe describes Percy's 'road' rather than many others 'road'

[Xerof]

Perhaps he is talking the same riddle as I was on 9 June

Sounds like there might be 'new hope' for the future at some stage

[percy]

I have not read shoeshine.
NBR june 14.Margin Call;"PGW should be a leader in the government's goal of doubling merchandise exports to $64 billion by 2035 with $48billion of it coming from pastoral production."
"The succession of Mark Drewdney ,has been widely approved."

[Snoopy]

Snoopy wrote:
"The other question is how localised is the upturn you are seeing Snapiti? It would make my day if you said you lived in Hawkes Bay."

...and yes my farms are in the Hawkes Bay

There seems to be a lot of "rear view mirror analysis" on PGW done in the press of late. Much of it has been referenced on this forum. Looking forwards, I am more positive about PGWs medium term future, as an investment, than at any time since Craig Norgate left the boardroom.

I keep half an ear open for whatever happens in Hawkes Bay because anecdotally I think it is one of the toughest areas to farm right. Hawkes Bay gets more than their fair share of drought and tends to be more sheep/beef than dairy. So whenever things look up for Hawkes Bay I am heartened. Admittedly my farmer sample of one (Snapiti) is not statistically significant and given that he has money to invest in the sharemarket I suspect Snapiti is a better than average farmer. Nevertheless the fact that our ear on the ground in Hawkes Bay is moderately buoyant is something I take notice of.

Snapiti also warned us about the danger of the NZ dollar staying for a prolonged period of time in the upper 80 cent range. Well it is now in the upper 70 cent range. OK that is still not low enough for farmers to declare 'times are good' (only happens about once in a decade anyway). But I believe we are on track for a modestly good year in farming.

In the past I have considered a 'good year for the irrigation unit' is a bad sign, as it means a shortage of rainfall. However, I was surprised to read the other day that 70% of the irrigation being installed nationwide at the moment is in Canterbury. Combined with the fast tracking of the Canterbury Plains irrigation scheme and the fact that PGW's "Pumping and Irrigation" is largely Canterbury based I now believe we can have a good irrigation year and a good farming year.

I can't see any significant contribution coming from China, although I would be grateful if partner Agria proves me wrong. But to my way of thinking China was never a pivotal growth market anyway. Perhaps we will end up quitting Australia at a loss, but Agritech historically has made almost all their money in NZ. And South America does seem to be 'coming right'.

In summary, I see a somewhat dreary steady as she goes future for the NZ operations. But if PGW can jettison their overseas baggage that should produce some 'growth' (reduced losses). And if you can buy those PGW shares cheaply enough (somewhere under 30c qualifies in my book) that should produce a positive experience for new PGW investors going forwards.

SNOOPY

[Minerbarejet]

whose chart is that and does it have adjustable MA like 50 and 200? Its very clear not like some.
Cheers

[Minerbarejet]

whose chart is that and does it have adjustable MA like 50 and 200? Its very clear not like some.
Cheers

request withdrawn thanks anyway. it is a Direct Broking chart with limited MA