PGW - PGG Wrightson

[Beagle]

So you are re 2 and bit cents in the black atm Snoopy . The chart looks v weak and the macro re commodities and mkts are volatile and downwards.You must be confident re the road ahead for PGW?
How are you faring Roger?. You disclosed at least one top up @ re 48c ; hows your average going?
Not holding atp missed my buy away back sub 40c.

I got most of mine back at 40 cents so I'm all good and have really enjoyed the tremendous fully imputed dividends the company has paid, especially last year's final and special. I am comfortable holding as a yield stock.
http://www.4-traders.com/PGG-WRIGHTS...13/financials/
Consensus brokers estimates at 4.4 eps 2016 and 5.1 eps 2017. At least two brokers have revised their ratings after the result and consensus price target is now 49 cents, down from 51 cents.
Stock trades cum 2 cents fully imputed final divvy so people selling now at 44 cents are really only getting 42 cents less brokerage, (might as well call the real price they're effectively getting). I won't be selling but would consider doubling down if it gets a bit lower.

[Bjauck]

My goodness that is frightening....25 years...well actually, it has been 21 yrs since my first purchase...IFT at around 50c in 1994 with $500 using direct broking, then moved to access brokerage - released our cash for an Auckland house deposit from them just 1 week before they went 'belly up'. Maybe I will post very occasionally as I am slowly getting back into the NZ market...it is just so slow and seemingly quiet compared to the UK market (currently hold GSK, ALNT, BON, IUKD plus a speculative embarrassment!) Added to that I have one or two small ETFs. When I get home (live overseas and come back to NZ to enjoy the frigid southern winter with family) maybe a post on the international board may not go amiss (although those buying with NZD may find the international markets not ideal long-term, some good short terms can be found if that is what you like - not my scene though as I am turnaround/value and long term).

I bought my investment in IFT at the same time as you and what a good investment it has been! Infrastructure assets are usually* less volatile than the markets PGW operates in. I originally bought PGW as a recovery stock - which did occur - and I now hold it as an income stock. The UK market certainly has greater depth and access to a broad range of sectors. Despite the UK market having stagnated for the past year or so, the NZ dollar returns would be quite high for NZ investors.

New rules, perhaps introduced after you left NZ, means that NZ domiciled investors need to account for UK (& other foreign investments with some Aussie exceptions) investment returns according to the FIF rules. As the rules can impose NZ income tax on unrealised capital gains on foreign investments, it does not encourage individual investors in NZ to diversify their investments to include business sectors not available on the NZ exchange.

*politics notwithstanding!

[BlackPeter]

New rules, perhaps introduced after you left NZ, means that NZ domiciled investors need to account for UK (& other foreign investments with some Aussie exceptions) investment returns according to the FIF rules. As the rules can impose NZ income tax on unrealised capital gains on foreign investments, it does not encourage individual investors in NZ to diversify their investments to include business sectors not available on the NZ exchange.

*politics notwithstanding!

Just a wee correction - whether stocks fall under the FIF regime has nothing to do with whether they are traded on the NZ stock exchange. The criterion is, whether the company is NZ based.

There are a number of NZX traded stocks which you need to declare under the FIF regime (unless the de minimum rule applies): some examples (just from memory) would be e.g. DIL, TEM, OGC, COA - and I am sure, there are plenty more. All of these funds (or companies) are listed on the NZX, but based outside of NZ and Australia.

Obviously - if in doubt consult your tax professional ...

[Bjauck]

Just a wee correction - whether stocks fall under the FIF regime has nothing to do with whether they are traded on the NZ stock exchange. The criterion is, whether the company is NZ based.

There are a number of NZX traded stocks which you need to declare under the FIF regime (unless the de minimum rule applies): some examples (just from memory) would be e.g. DIL, TEM, OGC, COA - and I am sure, there are plenty more. All of these funds (or companies) are listed on the NZX, but based outside of NZ and Australia.

Obviously - if in doubt consult your tax professional ...

I did not go into the details of the FIF scheme on a thread for PGW as there are there are other threads that cover that. However I did not say that all NZ traded stock were automatically exempt from FIF rules. All fund and company investments outside NZ are to be treated as FIF unless on the Australian Share Exemption List produced annually by the IRD. As always DYOR.

[Snoopy]

So you are re 2 and bit cents in the black atm Snoopy . The chart looks v weak and the macro re commodities and mkts are volatile and downwards.You must be confident re the road ahead for PGW?

As a dividend seeking investor rather than a trader, I am interested in building up an income creating asset that pays a decent dividend stream. Even if the amount of the dividend paid does not change, the yield will change as the market price of the share changes. I know it is tempting to compare the market price of the share with the price you paid, but I try not to think about this too much. If I am happy with the income stream, it doesn't really matter what Mr Market is prepared to pay for my shares on any given day. OTOH if I have new money to invest, then it is in my interest for the share price to be as low as possible regardless of what price I paid for any shares in the same company that I have bought in the past.

I am confident that PGW will remain a major player in the farm supplies market for the next ten years at least. That means I am prepared to look through any cyclical downturn in the PGW share price without losing too much sleep!

SNOOPY

[BeeBop]

And that is exactly the same approach I also have to all of my shares. Interestingly, it has paid off well when I purchase in down times. I have a target minimum yield (different by market) and provided the numbers stack up, I buy and maintain the portfolio by "purchase price". PGW is good for this..that said I do recheck alignment with each report coming out.

[Beagle]

As a dividend seeking investor rather than a trader, I am interested in building up an income creating asset that pays a decent dividend stream. Even if the amount of the dividend paid does not change, the yield will change as the market price of the share changes. I know it is tempting to compare the market price of the share with the price you paid, but I try not to think about this too much. If I am happy with the income stream, it doesn't really matter what Mr Market is prepared to pay for my shares on any given day. OTOH if I have new money to invest, then it is in my interest for the share price to be as low as possible regardless of what price I paid for any shares in the same company that I have bought in the past.

I am confident that PGW will remain a major player in the farm supplies market for the next ten years at least. That means I am prepared to look through any cyclical downturn in the PGW share price without losing too much sleep!

SNOOPY

Good approach mate.

[Baa_Baa]

What is the reason why a dividend investor, when confronted with a confirmed SP downtrend, wouldn't sell in between the dividends, to preserve capital and buy back more stock later at a lower price to avail themselves of the next dividend? This more active capital management approach seems a complementary approach to the astute yield hunting & holding approach, though I'm open to being enlightened. TIA.

[couta1]

But Baa Baa at the moment we are waiting for the PGW dividend and others like SPK not in between them

[iceman]

What is the reason why a dividend investor, when confronted with a confirmed SP downtrend, wouldn't sell in between the dividends, to preserve capital and buy back more stock later at a lower price to avail themselves of the next dividend? This more active capital management approach seems a complementary approach to the astute yield hunting & holding approach, though I'm open to being enlightened. TIA.

The short answer to that is tax. A trader is liable to income tax on any gains whereas a long term investor is not
I like and share Snoopy's approach with most of my investments but also run a small trading portfolio separately