PGW - PGG Wrightson

[Beagle]

Haha. Apparently they offered Roger a reverse mortgage on his current holding so he could enjoy his spoils now. 'Get your Riviera, before the summer' was the line that got him.
See Winner not all bankers are greedy, thinking about Roger like that.

lol been there done that...nice boats, shame they keep breaking down almost every second trip and require endless maintenance at extortionate pricing charged by local Riviera dealer. Decent sized Stabicraft or similar is all you need, one engine and simple on-board systems and no need for a loan from HNZ.

I don't think the company has ever exactly specified the quantum of their business with dairy but have another read of the recent market update, IIRC there was some comments in there about the size of their business dealing with dairy and its quite small.

Don't get me wrong though, I'm not extremely bullish on this stock. I think its fair / good value at the current price and I am a long term investor so am investing looking at a time horizon that's longer than the current market cycle. I think its a great yield stock and trading cum the final fully imputed dividend is a solid hold.

[sb9]

So, one of first big ones to kick off results season on Tue 11th, last chance for bets tomorrow.

[LAC]

So, one of first big ones to kick off results season on Tue 11th, last chance for bets tomorrow.

Hmmmm ............... Revenue and divvy not as impressive. Profit up 18% though

[see weed]

Good result. 2c divi. As I expected

[nextbigthing]

Great result in these conditions. Undervalued.

[noodles]

Hmmmm ............... Revenue and divvy not as impressive. Profit up 18% though

They did beat their recent EBITDA guidance.
Given the recent acquisition, I didn't expect any more than 2c

[sb9]

Agree with you guys, good result.

[BlackPeter]

Great result in these conditions. Undervalued.

Respectable result - yes. Great? Not sure. I guess it could have been worse, but on the other hand - very little dairy exposure and the rest of agriculture was doing just fine this year.

I noticed a light drop in NTA (35 cts down to 33 cts) and a slight rise in liabilities to assets (57.5% up to 59%). Not enough to become worried, but something to keep an eye on, given that the last year was not too bad (but dairy). As well - good the profit went up, but looking at their CAGR (0.3%) - their long term revenue is not even growing with inflation - i.e. long term a shrinking company unless they do something about it.

Sure - they are a good dividend generator unless something goes wrong - but I am not sure whether I would call them "undervalued".

More interesting is what the future could bring. If we assume we go through a somewhat rocky period with dairy down, increased animal and farm sell-offs and subsequent reinvestment, than actually - they might continue to do just fine ... as long as El Nino behaves and dairy comes at some stage back out of the doldrums.

Discl: holding

[Beagle]

http://www.sharechat.co.nz/article/1...s-dividendhtml

Agree with you guys. Good solid result. It was to be expected they'd trim their dividend on the back of the two recent acquisitions. I think they are well placed to make steady progress. Gross div yield at 47 cents is 11.8% and in my view is sustainable for the forseeable future. The most diversified agri stock and well worth having some as part of a well diversified portfolio in my opinion.
Happy holder.

[nextbigthing]

Hey BlackPeter,

IMHO if you look at the earnings of PGW versus the diversification it has within the company and the risks it faces and then compare this to other stocks on the nzx it leaves them for dead and on this basis I say it's undervalued. Sure others may have more growth ahead but what are they going to grow to? The same level of EPS as PGW? Why not just buy PGW now instead

Cheers,
NBT