PGW - PGG Wrightson

[Hoop]

I'm depending on that sentiment .... smaller bad will be very good I hope...Unfortunately I ODed on the happy pills went insane and dabbled small time into some NZX stocks on friday..reason?.. to excite my boring life on the sidelines.... I have no idea why I picked PGW as one stock (32c) , it has tight bollinger bands on a flatline chart so the price is going to go either up or down...

My plan is,,,,,,,,,,,, sell if it goes up ...... sell if it goes down ........if the unexpected happens and it stays flatlined I'll have to take a day or two to think what to do next... (slow thinker)

Hmmm looks like I have to think about it....damm I hate trying to think.

[Hoop]

sell hoop sell help drop the price to 29 cents

Whataya wreckin Snapiti..... A sell order for 1 share at 28 .... to create a shake out

[Minerbarejet]

Hmmm looks like I have to think about it....damm I hate trying to think.

Me too - my brain,such as it is, hurts from trying to follow this stock. Maybe you could get some more happy pills with the dividend.

[percy]

All in all not too bad considering the drought.
Mr Lai gets to bleed the company for a divi (should be used to pay down more dedt).
Given the strong outlook for farmers over the next 6 months me thinks I will hold my shares through till the next announcement(6 months).
Well put my order in for some more shares if Mr Markets lets the share price go below 30cps on the back of this result.

Sir John Anderson and George Gould have the company in good shape.We find ourselves "well positioned."

[biker]

Not as bad as I was expecting. I'm in at 32c

[winner69]

Quick skim thru the accounts ...

- 47m debt due this year (30m last year)
- 40m net cash flow from operating activities (60m last year)
- raised 18m in new debt, paid back some 50m
- interest & finance cost down by 8m
- earnings per share obfuscated - but down

IMNSHO overvalued (even at 28c!)

W69, care to comment on those margins again?

Need I belg ....nobody listens

[Lizard]

I actually feel more positive about the potential for share price growth from here. However, it is still hard to see more than 20-50% in it, so not alot to get excited about.

[Snoopy]

Edit: Is anyone worried about the note at item 15 - that PGW breached their overdraft (temporarily, it is noted)? That worries me, to be honest. Good companies don't do that.

I think that in general PGW have had a decent go at paying down debt in general this year Sparky.

Overdraft facility was $12.34m. Actual overdraft was $12.463m. So we are talking a difference of $123,000, that the directors lead us to believe will be easily rectified. I am prepared to cut Sir John a bit of slack here as we know how notoriously difficult cashflow from farming is to predict accurately. If they had other imminent debt problems that might be cause for concern.

Think of PGW as an OK company rather than a good company and I am sure you will come around to my point of view.

What did catch my eye was the bad debts written off under note 7: $2.111m verses $225k from last year. NPAT normalized was only $14.6m. That bad debts would have boosted earning by circa 10% if they had been held at the level of last year.

SNOOPY

[Snoopy]

I'm new to investing. For some reason i bought PGW at 0.450.
Not much thank god just $2000 worth and am trying to decide whether i should just cut my loses and get out.

Wolf I have been investing a bit longer than you and my PGW shares owe me 45c as well. I see no reason to sell from here, as Agria on the register should see a steady steam of dividends headed our way. The very highly paid gardener, George Gould, I believe will be off the payroll this year. That should add a million or so to profits for FY2014 right there.

I am sure your investment in agriculture and specifically horticulture is exactly the place to be though. Here in Christchurch city the head gardener, a bloke named Marriott, is on $500k plus. Over at another Christchurch based company called Solid Energy the head gardener, a bloke called Elder is I think on close to $1m. So horticulture is I think, the money making industry of the future ;-P.

SNOOPY

[Snoopy]

Do I detect an unnormal positive smooth/soft tone to your post Snoopy.
Can your lack of scathing about this latest report be a buy signal or did you just get lucky last night.

The main message that I have tried to give people over the last year Snapiti is don't pay too much for your PGW shares. I know that from bitter experience as I paid too much for most of mine. Unfortunately various shareholders on this forum seemed to suffer from 'irrational positivism' and determinedly did not learn from my experience.

PGW are the most recent shares that I have bought at 28c. If I was negative on PGW I wouldn't have bought those shares. NTA is currently 32c so I would rate PGW an accumulate on weakness at those price levels.

SNOOPY