PGW - PGG Wrightson

[nextbigthing]

Roger,

Given they're about to pay a 2c dividend, you could argue the price today is effectively 45c with payments starting in 6 months... That's a damn good yield.

[GR8DAY]

18% growth in profit aint too shaby.....esp given current depressed dairy sector. UNDERVALUED?....almost certainly. (confrirmed in Rogers attachment above......3 analysts valuing PGW at 51c) On a yield basis the upcoming 2c divi equates to an immediate return of 4.5% (gross about 6%?).....and thats only 6mnts worth!! With falling bank investment rates this will soon equate to at least 3 times the bank returns.....sooo the SP is well and truly underpinned by this fact IMHO. Show me a better listed yield play?? HOLD and GATHER.

[Beagle]

Roger,

Given they're about to pay a 2c dividend, you could argue the price today is effectively 45c with payments starting in 6 months... That's a damn good yield.

LOL You've been reading my previous posts haven't you Yes absolutely agreed mate. Good sound value at this price in what many would argue is otherwise a market that's fully priced.
I am happy and comfortable with the way they're managing the business.

[noodles]

Had a listen in to the conference call. It is fair to say that FY16 is going to be very challenging. They have 20-25% exposure to dairy. Thus 20-25% of their debtor book is also exposed to dairy. They are expecting a higher debtor days in Fy16.

But a very well run company and a great set of results.

[percy]

Had a listen in to the conference call. It is fair to say that FY16 is going to be very challenging. They have 20-25% exposure to dairy. Thus 20-25% of their debtor book is also exposed to dairy. They are expecting a higher debtor days in Fy16.

But a very well run company and a great set of results.

Like everyone I was very surprised to hear the level of PGW's dairy exposure.

[GR8DAY]

.....sadly I guess the Real Estate division will pick up some increase in commisions from forthcoming forced sales of stressed dairy farms.....prefer this not to happen but sounding like it's now inevitable?

[RTM]

Like everyone I was very surprised to here the level of PGW's dairy exposure.

Might be higher than Heartlands Percy !

[percy]

Might be higher than Heartlands Percy !

Three times HNZ's exposure.!

[Beagle]

Might be higher than Heartlands Percy !

Three times HNZ's exposure.!

The key difference being that when dairy owners go broke HNZ loses heaps whereas the next owner of the property bought at less than half its theoretical price still has to buy farming supplies.

[couta1]

Both stocks are worth holding regardless of dairy influences.