nz farming systems Uruguay

[etrader]

Well despite some who took the options up at $1.50 i'm happy been up 45%ish today, yes shocking day for it to ipo Macdunk given what's happening in oz and around the world, there will probably be a bit of a shake out in those who punted on the options stagging. Like you said could be a little weakness and then when the markets calm down the price could slowly move up again.

[ratkin]

There will be plenty of original 1.00 holders who will be more than happy to take the easy profits. After all it is likely to be a very long wait before the company makes any money . In this current climate a quick profit cant be sniffed at.
Probably a good stock but hard to find any reasons to bother to invest at the present time. May as well keep the cash in the bank , it not as if the sp going to go anywhere for a while.

Those who got it at 1.00 did well , 1.50 was probably too much , it can hardly be a 50% better company than it was when it started. 1.25 probably about right

[duncan macgregor]

Well despite some who took the options up at $1.50 i'm happy been up 45%ish today, yes shocking day for it to ipo Macdunk given what's happening in oz and around the world, there will probably be a bit of a shake out in those who punted on the options stagging. Like you said could be a little weakness and then when the markets calm down the price could slowly move up again.

It is to early in the game to hold this share with likely dividends not likely for some considerable time. The share price has got to drop to a much lower level over the next few months then find its level of profitability to adjust the share price to what ever level. Its nothing to do with if is a good or bad investment long term, its all in timing your entry at a realistic level. Absentee Farming shows a poor return on invested money, the property side of it is a different story. Why pay $1-50 when you can sit it out, then buy more of them later at a cheaper price. The winners here is PGW selling to the city people. PGW cant lose you lot can taking gambles on something you know nothing about. Macdunk

[ratkin]

It is to early in the game to hold this share with likely dividends not likely for some considerable time. The share price has got to drop to a much lower level over the next few months then find its level of profitability to adjust the share price to what ever level. Its nothing to do with if is a good or bad investment long term, its all in timing your entry at a realistic level. Absentee Farming shows a poor return on invested money, the property side of it is a different story. Why pay $1-50 when you can sit it out, then buy more of them later at a cheaper price. The winners here is PGW selling to the city people. PGW cant lose you lot can taking gambles on something you know nothing about. Macdunk

Many projects take a long time to pay dividends, your beloved mining shares are an example. Remember when resourses were seen as having poor return on investment? Not so long ago.

Farming is going to be the next big boom , it has to happen , population growth industrialisation and urbanisation of third world, global warming etc etc.

I picked the price wel at 1.38 , it looks like the buyers are now coming out from watching , these shares will be in demand , after all there are not many similar opportunities around to gain exposure to dairy

[AMR]

A bit too early stage for me as well, but I'll be watching technically to see if any smart money buys in. A bit too early to call it an uptrend as well, this peak might provide an opportunity for people to get out.

For those who are into commodity charts, I've found some dairy prices on the Chicago Merchantile Exchange.

Disc : A city dweller whose only knowledge of farming is from watching footrolt flats.

[duncan macgregor]

RATKIN, First of all i dont have any beloved shares in any sector, mining or otherwise. I dont give a damn about any company, good or bad they are looked upon only as a means to an end. I couldnt care less if the company prints bibles, or produces weapons of mass destruction, or stuffs the world up with global warming, my only focus is on the company making me money. Absentee farming is a very low profit operation which may or may not improve in time, [Ask the Russians]. To sit it out long term requires you either get sp appreciation, or be content with dividends being paid.
If you want to be a doo gooder, join the salvation army or grow a beard, and sit up trees protesting about this or that. If you take away property and capital appreciation from a farmers income, in general you will find its a slave labour occupation. It is a lifestyle supported by a high capital base in a high risk industry going by the number of forced sales and bankrupts. PGW are on the pigs back with this one, its you that carries the risk. I hope your blind faith works out for you with this one i dont gamble so not interested. Macdunk

[tim23]

Agree with you Ratkin - if nobody ever bought a stock on the basis you are buying (which appears logical) then companies wouldn't float, I suspect the number of traders in any given stock represent a very low % of total holders.

[COLIN]

A bit too early stage for me as well, but I'll be watching technically to see if any smart money buys in. A bit too early to call it an uptrend as well, this peak might provide an opportunity for people to get out.

For those who are into commodity charts, I've found some dairy prices on the Chicago Merchantile Exchange.

Disc : A city dweller whose only knowledge of farming is from watching footrolt flats.

I guess some would say that quite a bit of smart money has already bought into the IPO - see the SSH Notices of the last few days. However I tend to agree with McDunk who notes that PGW will be the significant winners out of all this - did you notice from the PGW update a day or two ago that NZS is expected to contribute something like $8m to PGW's NPAT for next year, from management fees etc? Its enough to tempt one to entertain the idea that maybe it is time to creep back into PGW again - in fact, I took the plunge and bought a few myself, including for other reasons than just the Uruguay business.

[ratkin]

Suprisingly , it did occur to me that PGW was the risk free way.
However i soon rejected that option, it also means buying into their debt and all the lesser performing aspect of their buisness while diluting your interest in the Uruguayan venture.

Much prefer to be exposed to the pure play . May be more risky, but potential rewards likely to be higher.

During my O.E. days i travelled with Marina , a half uruguayan/german from Montevideo, Uruguay. Ever since then i have had a soft spot for the place.

Having been there ,im not going in totally blind as McDunk seems to think. The country is not so different from NZ . Small, similar population size , largely rural.
I would say that given the much cheaper land and labour costs that setting up dairy farms there was less risky than buying one in NZ at this time

Most people have an image of south america as being totally lawless, hyper inflation, coke growers and banditos. If they took the trouble to remove the blinkers they would realise that a place like Uruguay is probably safer than NZ

[duncan macgregor]

RATKIN, its nice to know that you not only have been there, but give out your factual point of view to others who would not even have a clue other than blind faith. I would be interested to have more detail on GOVT stability, average wage, that sort of thing along with exchange rates and rate of inflation. There is so much of the unknown to the average investor to make a rational decision, other than blind faith in being told the truth,which you and i know can lead to disaster. Tell us what you know it would be of great interest to investors with open minds on the subject. Macdunk