PGW - PGG Wrightson

[Out to lunch]

Thanks Agrarinvestor, really helpful. Still finding it hard to find value in Agria. Results on Friday were not impressive.
Back to PGW, will be interesting to see how the competition faired:
If only Fonterra disclosed RD1Farmsource separately in their financials, cost cutting hard (hopefully not to the detriment of shareholders!) https://store.nzfarmsource.co.nz/cam...upport-package
and Farmlands have indicated some weakness http://fieldnotes.co.nz/rural-infras...for-farmlands/

[Agrarinvestor]

Currently the Value in Agria is that they are the controlling shareholder of PGW. No idea why it took so long to conquer chinese market with PGW branded products. Perhaps they have to register PGW seeds with government .
At the end of this article you find something about Agria:
http://www.desmoinesregister.com/sto...yers/16479257/

>>"You can really make money in vegetables."David Shao, President of Agria.
(Photo: Rodney White/Pulitzer Center and The Register)



Shao will leave the field corn market to Pioneer and other foreign companies. He sees gold in sweet corn.
"You can really make money in vegetables," he said.
Agria is a Chinese agricultural company whose stock trades on the New York Stock Exchange. Its business includes seed, grain, crop protection and other products and services, and it has major operations in Australia and New Zealand.
Shao said Agria has about 10 percent of the Chinese edible corn market, with lots of room to grow. The company has partnered with the Beijing Agriculture and Forestry Academy to improve the genetics of edible corn.
"I don't think we can fight head-on with field corn multinationals," Shao said. "You're too far ahead of us.<<

[Beagle]

Fontera upgrades forecast payout today to $4.75 which taken in tandem with a dividend on the shares expected 50-60 cps according to some commentators should now see dairy farmers break even this year. Great news for PGW with dairy making up ~ 20% of their business.

Consensus broker valuation now 60 cps and BUY. Trades cum a fully imputed final dividend of 2 cps. Opportunity knocks at 52 cps cum divvy ?
http://www.4-traders.com/PGG-WRIGHTS...113/consensus/

[Out to lunch]

The milk price is currently influenced by a drop in production predominantly due to culling of the herd. Not that great for PGW having less herd but who knows, once we get in the peak production season in September, a potentially high price may encourage farmers to use PGW more and run their farms at a lower gross margin/higher volume but this will be very limited to the number of cows in their herd.
ASB thinks the milk price will be $6 for the season which is against other bank consensus in the low 5s. Maybe they are just saying that so they can justify writing some borderline rural loans lol.

65 cps is based on like a 13ish P/E with 6%ish net yield. Up to you if you think PGW is worthy of such a yield given the current headwinds in commodity prices and fierce competition.

[see weed]

If you want the div, then be in, by 5pm.

[Beagle]

This divvy hound topped up on 25 August, determined for a full sized feed. Looking strong at the close

[couta1]

This divvy hound topped up on 25 August, determined for a full sized feed. Looking strong at the close

This divvy hound sold his holding last night at 53c in order to buy more Air today, bottom line is I get 4 times more in my bank account for the same money.

[Beagle]

This divvy hound sold his holding last night at 53c in order to buy more Air today, bottom line is I get 4 times more in my bank account for the same money.

You greedy hound I can trump that though. I sold CVT at just over $10.00 a share before going ex a 2 cps divvy to buy 4.4 times as many AIR shares paying 35 cps thereby getting 4.4 x 35/2 = 77 times the bang for this hounds buck.

[bung5]

This divvy hound sold his holding last night at 53c in order to buy more Air today, bottom line is I get 4 times more in my bank account for the same money.

would expect airnz to drop 35c when it goes ex div negating any short term benefits

[couta1]

You greedy hound I can trump that though. I sold CVT at just over $10.00 a share before going ex a 2 cps divvy to buy 4.4 times as many AIR shares paying 35 cps thereby getting 4.4 x 35/2 = 77 times the bang for this hounds buck.

A very crafty play mate, puts things in perspective though when a top divvy payer like PGW gets trumped x4 on divvy yield, how often would that happen.