PGW - PGG Wrightson

[noodles]

Noodles, I have been through the 2014 annual report. I saw a comment about replacing the point of sale IT systems. But I didn't find anything about an abnormal charge of $3.5m. Can you point me where that figure came from please?

TIA

SNOOPY

Must have come from an investor conference call I think

[bunter]

PGW market capitalization is now $369.876m (share price 49c).

That is greater than the following current NZX50 listed shares, as of today:

ATM: $310.231m
STU: $255.662m
SKL: $266.072m
PEB: $245.334m
KMD: $286.108m
NZO: $273.714m

Time for a recall? Or will the 50% of tightly held shares held by Agria preclude a return to the NZX50?

SNOOPY

Yes. IIRC any holding over 20% is removed from the free float. The NZX uses discretion for holdings between 5 and 20%.


I looked at this a month ago; the following's a table of companies that are might be nearly in or nearly out of the NZ50.

Bold = in NZ50 currently.
In=might get in 'Out' = might be removed

Looks like OHE and VGL might be added and NZX and SKL removed.
More wins for the tech sector at the expense of real companies.

PGW well down the track - $270 mil free float approx needed.
Check again when PGW is 75c

IN	OHE	?	900	approx
	RBD	100%	364
IN	VGL	100%	307
	STU	100%	293
	PEB	100%	290
OUT	SKL	94%	268	cushing .06
ADDED	MPG	82%	268	Dir Cap .18
	SML	50%	264	Brightside .4;campina .1
OUT	NZX	100%	256
REMOVED	NZO	80%	248	ZETA .2
	ERD	100%	228
	HBY	73%	222	Castle' 28%
	IQE	75%	219	Former owners .25
	DPC	100%	191	19.9% Hugh Green Inv
	HLG	100%	190
	PGW	50%	168	Agria .5
	SCL	82%	166
	WYN	66%	160
	THL	100%	159
	DGL	33%	159	Delegats .67

[sb9]

After 50c the price increments are in 1c, not .005c(half cent), right??

[Snow Leopard]

After 50c the price increments are in 1c, not .005c(half cent), right??

Correct for PGW

Only the following can trade in 0.5c increments above 50c:
AIA, AIR, ARG, AUG, CDI, CNU, DNZ, GFF, GMT, GPG, IFT, KIP, MELCA, MRP, NPT, NZO, PCT, PFI, SPK, SPY, VHP, TWR
[stolen from ASB Sec website]

Best Wishes
Paper Tiger

[Te Whetu]

One cent increments is meant to increase liquidity, presumably at the expense of increasing the spread.

There have been studies... which I read the title of.

From personal experience, I think the reason liquidity is increased is that by reducing the number of price points at which you can trade shares, you artificially simplify the buy/no buy decision. I.e. it becomes less about placing an order 0.5 cents in front of the other seller/buyer, and more about whether you are going to make the transaction. But that's just my theory.

[sb9]

Should break 50c mark today looking at the depth.

[Beagle]

Correct for PGW

Only the following can trade in 0.5c increments above 50c:
AIA, AIR, ARG, AUG, CDI, CNU, DNZ, GFF, GMT, GPG, IFT, KIP, MELCA, MRP, NPT, NZO, PCT, PFI, SPK, SPY, VHP, TWR
[stolen from ASB Sec website]

Best Wishes
Paper Tiger

Does anyone know what's behind this...why some stocks can trade in half cent increments and others not ?

[sb9]

Dairy payout forecast up can only help too

True along with anticipated results due out on Tuesday. Big volumes through today.

[Snoopy]

I looked at this a month ago (whether PGW mighte be due for a return to the NZX50);

PGW well down the track - $270 mil free float approx needed.
Check again when PGW is 75c

With the Agria holding 'locked up' for index weighting purposes, and PGW flirting with 50c at what must be near the top of the natural cycle I make the following call: PGW will never again be part of the NZX50.

For me that means I must reduce my holding, because I have made a rule that I won't hold over a certain dollar amount of value for any share I hold outside of the NZX50. I was hanging out for PGW to return to the NZX50. But I can't forecast a realistic scenario where that will become possible.

Dairy payout forecast up can only help too

The problem is the dairy payout forecast isn't up. The dairy products auction "auction prices" are up, yes. But those prices are still below what is required for Fonterra to make their best estimate payout. The other problem is that dairy prices are up because of drought in NZ. Many dairy farmers are drying off their cows because of a lack of feed.

(Decent Milk Price) x (Zero Milk for sale) = (Zero Income)

I took a tiny slither of capital off the market today. Reduced by average PGW holding price from 44.5c to 43.5c. Woo Hoo! OK my buying over the years has not left me with the profit that some of you latecomers have.

I am predicting a really good first half result, and a decent interim dividend mainly as a result of the livestock division. farmers desperately quitting their stock means good turnover at the stockyards even if it is PGW that will be making the profit - not farmers. The problem I think will be the outlook. Mark 'the dewd' Dewdney may just make his forecast of beating last years result on an annual basis. But I can't see FY2016 being as buoyant.

SNOOPY

discl: Sold down, but no plans to quit my holding.

[sb9]

Might close today at 51c