nz farming systems Uruguay

[etrader]

http://www.nzherald.co.nz/section/3/...ectid=10431407

NZFSU have announced another $40 mill injection into the business, originally they were taking over subscriptions which they did, since that they've extened to that. I see this as a positivie step, i purchased at christmas into the pre float offer, will be interesting once it's listed as it's an iliquid stock at the moment due to it not been floated.

They now have updated their web site after settling on their fourth farm a larger farm which was settled at Christmas.

www.nzfsu.co.nz

[duncan macgregor]

Since no one is answering might i be allowed to ask a question?. Why in all the hell would you be silly enough to think that other people might confess to this stupidity. Surely you can pour your money down the drain in a more enjoyable activity. macdunk

[etrader]

quote:Originally posted by duncan macgregor

Since no one is answering might i be allowed to ask a question?. Why in all the hell would you be silly enough to think that other people might confess to this stupidity. Surely you can pour your money down the drain in a more enjoyable activity. macdunk

Appreciate your view MacG obviously you are risk adverse in some areas and nzfsu does not fit into your investment strategy.

I'm happy to diversify into offshore with this investment, there was good support on the subscription, and i think it will prove a reasonable investment.

I know the investors from RPI would not put good money into bad, but i guess only time will tell.

happy investing MacG

[duncan macgregor]

Thats what makes the market you think this i think that. Farming world wide has a very low capital return on investment. Take any country in this world then show me a decent return other than a capital gain at the end if you can. Farming is a family life style business not a company business, just ask the russians.
Good luck with your investment, i expect of myself much higher returns than you could possibly hope for with this one. MACDUNK

[D_Pick]

Are NZ Farming Systems Uruguay listed on the NZX? If they are what is their ticker code? I couldn't find this info on their website only the statement

"161,934,177 part paid to 50 cents with second instalment of 50 cents due 14 December 2007.
Application to list on NZX is expected to be made immediately after this date."

Macker would you also say that property is a bad investment because investors can't make a decent return other than capital gain?

Aren't NZFSU investing in property, developing properties using 'best practice' and aiming to generate cashflows by converting to dairy or beef. Enhancing a property has to be good for its value.

I'm under the impression most NZ style farms are run as companies as that is the best structure to make a profit.... and that is the reason for being in the game, a family doesn't need to own a farm to have a life style. Additionally scale typically improves margins, therefore why not be a bigger coporate farmer.

[biker]

quote:Originally posted by D_Pick

Are NZ Farming Systems Uruguay listed on the NZX?
second instalment of 50 cents due 14 December 2007.Application to list on NZX is expected to be made immediately after this date."

[D_Pick]

Thanks biker
So no market prices inbetween?

[duncan macgregor]

quote:Originally posted by D_Pick
Macker would you also say that property is a bad investment because investors can't make a decent return other than capital gain?
I'm under the impression most NZ style farms are run as companies as that is the best structure to make a profit.... and that is the reason for being in the game, a family doesn't need to own a farm to have a life style. Additionally scale typically improves margins, therefore why not be a bigger coporate farmer.

What I am saying is if i buy a commercial building to rent out in NZ i can expect a return on capital between 6% to 8% in rent plus a capital gain when i sell. If I buy a farm in any country in this world take your pick [excuse the pun]I can only expect a 3pc return on capital if i run it myself plus a capital gain when i sell.
To place managers in and run it like a company is a fools investment.
Thats only my opinion having been around farms in quite a few different countries. The investors coming into this will be city people i cant see any practical farmers investing in this. macdunk

[etrader]

You probably saw the report pre placement MacD that around 50 farmers from nz went over to view the system and farms, they have invested in a heavy way into this Pre float, I'm sure these farmers are not going to buy into something that had a pre management cost of 3% of the capital value otherwise net of wages it would always loose money, there does not seem to be to many farmers broke in this country, also the farms are without debt so althought they've stated dividends are a way off the business is aquiring land at good present values with an increase expected from presures outside south america for this land, this is already happening with soy and corn crops requiring land there.

[living2]

What I can't figger
So they are going to do a NZ type dairy conversion in uruguay.BUT in NZ there is other infrastrucure in place outside the farm gate .
What infrastructure is in place in Uruguay???
Who and how are they going to sell the milk????