PGW - PGG Wrightson

[Beagle]

I was gonna buy those, you beat me to it. Got some at .405c later on. Took half a day for order to go through. Just another gamble.

Good on ya mate. Technical analysis be dammed, they're good value at this level. Buy in gloom, sell in boom

[James108]

Does PGW have much of a financial pot to get them through hard times, does anyone know?

I think I read somewhere that they pretty much deliver all their profit in dividends.

Have you tried looking at an annual report?

They have net debt, so apart from debt facility (?) no they don't.

[Lewylewylewy]

According to their annual report, their NPAT was $32.8M. They also had some one off income that gave them a total profit for the year of Close to $39.9. The divi at $0.04 is $30.2M So just on NPAT they would have $2.6M spare, but in total they would have $9.7 M in reserve.

Thanks Jantar, that's not a lot of rainy day savings (or is it dry day savings in the farming world?) for a company with outgoings in the region of 90M. How well positioned are this company to survive another 2008 type event? I notice looking at Google Finance's 10 year view, that the share price never really recovered from the GFC in 2008, while most others did. Economies experience some sort of crash every 8 years on average, is PGW doomed to pay great dividends then lose all the value every decade or so?

[Sideshow Bob]

Again, relatively low exposure to dairy

http://viewer.zmags.com/publication/...c#/0a779aec/28

[couta1]

Interesting depth chart this morning, price on the up and sellers drying up, must be due for a wee breakout methinks, perhaps thoughts of the dairy impact subsiding.

[Beagle]

Interesting depth chart this morning, price on the up and sellers drying up, must be due for a wee breakout methinks, perhaps thoughts of the dairy impact subsiding.

Yeah I noticed that too mate. I think the correction all the way down to 39.5 - 40.0 cents is a little overdone.

[winner69]

There was a guy on the radio this morning saying El Niño will curb farmers spend .....and specifically mentioned PGW as one to be affected

It was referring to a Forbar report - i thought Forbar were guru analysts.

[couta1]

There was a guy on the radio this morning saying El Niño will curb farmers spend .....and specifically mentioned PGW as one to be affected

Jeez, he an idiot eh

Egg on his face aye winner, think of all that extra irrigation equipment going out the door courtesy of El Nino.

[Beagle]

Its amazing really all the talk of some Canterbury farmers still currently being susceptible to a drought and enduring the effects of last summer's drought. I just travelled from Chch to Auckland after picking up my daughter's new car over 1,000 km's, so after travelling most of the length of N.Z. all I saw was a sea of green everywhere I went, (apart from on the Cook St ferry of course) although there were a few passengers looking a bit green with a fairy rough crossing

The odd farmer who is still bleating like a lamb lost from its mother about the effects of last year's drought really ought to get proactive and irrigate and do something about it ASAP, (yes I realise irrigation schemes can take years of planning and resource consenting but then we've had many years of drought's haven't we !).

On another note speaking of water and leaks and all. Interesting that exactly two weeks before the annual meeting and a scheduled update on the forecast for FY16 we have a fundamental sea change in the balance between the depth of buyers and sellers and the price being hunted up fairly aggressively. Leaks or investor anticipation ?, you be the judge.

[Jantar]

There was a guy on the radio this morning saying El Niño will curb farmers spend .....and specifically mentioned PGW as one to be affected

It was referring to a Forbar report - i thought Forbar were guru analysts.

Well he got that wrong. A sudden big increase in PGW price in the past 1/2 hour. I'm smiling again.