PGW - PGG Wrightson

[see weed]

So many if's, but's and maybe's in the N.Z. economy at the moment isn't there ! Bottom line for me is they're doing pretty well considering a whopping 24% of their customers are really suffering very badly. Good dividend yield stock and with interest rates set to plumb 70 year lows this year I think it's well supported around the current SP.

And .415c disappearing fast. 42c just around the corner.

[babymonster]

people must getting ready for the div

[Beagle]

http://www.nzherald.co.nz/business/n...ectid=11600252

http://www.sharechat.co.nz/article/8...y+5+March+2016

Looks like PGW could be in play...one way or other it looks sound value to me at 41.5 cps trading cum a fully imputed 1.75 cps dividend.

[see weed]

http://www.nzherald.co.nz/business/n...ectid=11600252

http://www.sharechat.co.nz/article/8...y+5+March+2016

Looks like PGW could be in play...one way or other it looks sound value to me at 41.5 cps trading cum a fully imputed 1.75 cps dividend.

Wonder what Monday will bring for PGW?

[Snoopy]

http://www.nzherald.co.nz/business/n...ectid=11600252

http://www.sharechat.co.nz/article/8...y+5+March+2016

Looks like PGW could be in play...one way or other it looks sound value to me at 41.5 cps trading cum a fully imputed 1.75 cps dividend.

I think the best that can be assumed here is that Alan Lai might be required to bid for the rest of PGW. However, I don't believe that Alan has the money to fund such a bid. The bid for full control of Agria I read as a cost saving measure for Alan, removing a level of (Agria) bureaucracy, that is no longer required now that Agria is little more than a holding company for Alan's investment in PGW.

Nor do I believe that Alan wants to end what has become a successful joint NZ/Chinese partnership. If Alan is forced to make a bid by the takeovers panel, a contingency I don't think likely, then expect it to be a low ball offer, say 30c, which would be rejected by all by all shareholders that can still stand up. Don't speculate on being bought out of this one is my advice to potential new PGW shareholders, speaking as a long term PGW shareholder. But on fundamental terms, PGW is I believe a sound place for investors to park a proportion of a balanced investment portfolio.

SNOOPY

[Beagle]

Be that as it may Snoopy but the world is awash with really cheap money and banks are only too keen to lend.

[winner69]

I think the best that can be assumed here is that Alan Lai might be required to bid for the rest of PGW. However, I don't believe that Alan has the money to fund such a bid. The bid for full control of Agria I read as a cost saving measure for Alan, removing a level of (Agria) bureaucracy, that is no longer required now that Agria is little more than a holding company for Alan's investment in PGW.

Nor do I believe that Alan wants to end what has become a successful joint NZ/Chinese partnership. If Alan is forced to make a bid by the takeovers panel, a contingency I don't think likely, then expect it to be a low ball offer, say 30c, which would be rejected by all by all shareholders that can still stand up. Don't speculate on being bought out of this one is my advice to potential new PGW shareholders, speaking as a long term PGW shareholder. But on fundamental terms, PGW is I believe a sound place for investors to park a proportion of a balanced investment portfolio.

SNOOPY

Snoops - be fair to the man - offer at 35 cents maybe

Not he first time somebody been in this situation and 'forced' to make a takeover offer to meet the regs.

[Beagle]

Or a takeover is self funding at 50 cps on earnings of 4.2 cps, 8.4% at the bottom of the cycle. Plenty of banks will fund a takeover at less than that especially @ Chinese interest rates !!!!.

[see weed]

Pgw ex div tomorrow. So if I Buy PGW today I get div. And if I sell PGW tomorrow I still get div.? Correct me if I'm wrong.

[Beagle]

You're spot on mate so people buying today at 42 cents taking a medium term view are really only effectivly paying 40.25 cps at the bottom of the dairy cycle once they get their dividend back in 5 minutes time so too speak.

Consensus EPS for the next 3 years is 4.3 cps, 4.6 cps and 5.0 cps. Consensus target price 48 cps. http://www.4-traders.com/PGG-WRIGHTS...13/financials/

Trading on a forward PE of 9.36 for Fy16 and consensus dividend of 3.75 cps fully imputed so gross of 5.21 cps so gross dividend yield .0521 / .4025 = 12.94% plus possibility of getting taken over at north of 50 cps at some stage....Hmmm...fairly compelling value in a somewhat otherwise stretched market I would have thought.