Looks like PGW have caught the ELD flu.
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Looks like PGW have caught the ELD flu.
Seems that RPI cant pay there shareholders/bond holders the divdend/ interest payments due so bond holders will inherit the shares and sell them on the market. So share price is sinking again!
We might be seeing the final demise of RPI?
Oh well it must be time for a top up!
It seems like everyone wants out of PGW. I assume PGC will want to sell down their 18% at some stage as it is non core?
Distressed shareholders = cheap stocks.
Remember when Fletchers sold out of Fletcher Paper? Or Fisher Fund sold PPL?
ELD? Dog with fleas which has an insolvent unit in NZ and more write-downs in Oz. Market is selling down to avoid the fleas jumping onto them!
I hold a few PGGWrightson. Patriotic Duty and so on. :)In this case, we must stop the Chinese getting the Company. :cool:The question is, what is the price at which I should CONSIDER buying more, and what is the price at which I must buy more.:ohmy:
All ideas welcome. Craig is obviously out, or will be shortly. :) :)
I do not Know at what price you must buy more.What we know is PGW has a strong balance sheet,the finance company is in good shape,the seeds business is world class.the PGW brand is strong,the board has been strengthened,the management is good.So the company is well respected,well managed and the results will come.
What is against the company is 4% of the company is about to come onto the market.This affects the SP short term but has no bearing on how the company performs long term.Once this overhang has found a home ,then all of a sudden the overhang has gone.
PGC's 18% is where you may need to ask more questions.Most PGC shareholders are relaxed with PGW .Whether PGC will put PGW holding into a rural fund under Perpectual trust,sell or continue to hold time will tell.PGC did not take up their rights in recent PGW issue without making sure it would be profitable.
Looks a great buy to me at these prices.Be certain while others are uncertain.Or buy just a few then add a few more in a month or twos time.
A bit like Ballanttynes sale.You go into buy a shirt and find you brought 2 for the price of 1.!!!!!!!!
What really matters is the sp a year from now (unless you are a trader). Those who bought into RBD or Nuplex in the last year bought at varying prices, some higher than others - did not really matter as their share prices have kept going higher and higher.
Having said that, we all want to get in at the best price possible.
Impossible to pick the bottom or the top so it's case of buying when the trend reverses decisively. Most of us would agree that averaging down is not a great way of investing!
Here there is a distressed seller so let's hope the trustee does not flog the whole lot to one buyer cheap.
BRING IT ON!
Note though, we only have one 'maybe' distressed seller. Since Pyne Gould can afford to hold plus scout around for someone to get their parcel at a bit of a premium. The Trustees for RPI? may sell quickly, but I doubt it. Craig Norgate may soon no longer be in charge of that parcel of shares. Same applies to NZ Farming Uruguay.
So when do we know its a panic sale?? Ideas please. When is the bottom the bottom?
. When is the bottom the bottom?[/QUOTE]
Mouse.the absolute bottom is reached when sharebrokers sell their wife's holding in a company.
When the market thinks there is more bad news to come,but there is not.
Balance has said the you should not try to worry about the bottom but wait until the uptrend.This is the best advice.
I have said if you cannot help yourself spread your purchases over a few months .
Balance has also pointed out the SP in a year's time is what you should be thinking about.
I cannot help getting excited on what the divie will be in a year or twos time.What will be the yield on today's SP.?
......yes what is the current yield at 53c....anyone know or prepared to forecast that over the next 12mnths.??
Just repeating part of a post I made on 13th January, for those with memories towards the shorter end of the spectrum. At 53c, PGW is trading on a 'good season' PE of around 7. The dividend has currently been suspended while earnings go to pay down debt. So the projected dividend yield is currently nil. If you swallow the Norgate hype then the the best case scenario would be an annual dividend of 7cps.
It is quite difficult to value a share like this based on cyclical earnings. The question is, is the Craig Norgate vision still attainable? I would say it is. But whether that vision comes to fruition in FY2011 is another matter.
SNOOPY
....so tell me SNOOPY, what exactly is/was the Norgate Vision??
[
It is quite difficult to value a share like this based on cyclical earnings. The question is, is the Craig Norgate vision still attainable? I would say it is. But whether that vision comes to fruition in FY2011 is another matter.
SNOOPY[/QUOTE]
As allways snoopy you do the hard work.Craigs have FY 11 net profit at $44.4 mil rising to $49.20 FY 12.So they are a bit behind Norgate's $55mil,but as you correctly point out cyclical earnings make a correct valuation hard.Who knows Norgate may be right!! What is important is the company has been put right.
If you are holding PGW at the moment it is because you are expecting the SP to move North rather than projected Yield. Good value at 53.
No major climatic effects during the farm year. Reduced costs because of rationalisation of the previous separate Pyne Gould Guiness and Wrightson store networks. Interest rates not significantly changed.
SNOOPY
P.S. No contribution from the failed Silver Fern Farms tie up has been allowed for.
Yeah everyone knows about the drought hit milk production,but price is a very positive sign of another dairy boom, chinese start to look at new investment- cos they know how big the market is and how precious a piece of clean land like NZ is.
Hope NZers could value their asset fairly as well
I think with farming you have to strive to do your best, but plan for the worst. With all weather factors going your way and competition in the market as it was a couple of years ago I don't think $55m is pie in the sky. Of course we get droughts, floods, unpredictable exchange rates, and the more one off effect of the credit crunch that dropped like a bomb and I think will echo out for years to come. When setting your goals, I don't think you can assume you will be king hit from many sides at once. I accept a $55m profit goal looks aspirational now. But that doesn't mean it wasn't the right figure to set as a profit goal at the time.
SNOOPY
A bit unfair to put the boot into Norgate now I think. I heard Brian Gaynor's criticisim of PGW having a weak board that just let Norgate run amuck doing too many things at once. No quite right I would have said.
NZS was up and running according to plan when Norgate tried the meat industry rationalisation, via Silver Fern farms. The expanded PGGW Finance has dodged many of the troubles of other finance industry companies. The bedding of Wrightsons and Pyne Gould Guiness together, I think we have to class as a success. It was only the credit crunch that derailed the Silver Fern farms deal. If a butterfly had flitted its wings a little differently in South Africa, the whole story could have had a different ending.
SNOOPY
It may be overly simplistic but buying or topping up on Agri Stocks at the end of a drought seems like a good plan to me. Someone has to put food on the global plate.
One caveat here. If Norgate had stuck to the original NZS prospectus plan, and developed only about half the land bank NZS have now, then NZS shareholders would be much better off today. The burden of those Uruguayan bonds on shareholder returns would be far less crippling. Of course the expansion was done in the light of soaring milk prices, and the expectation that Uruguayan land prices would only go up. Norgate just got 'white gold fever', which is perhaps something that a board with long farming experience, could have foreseen.
SNOOPY
Farming is a very simple industry to understand. The industry runs from one gold rush to the next with the winners getting out of todays booming sector and getting into the next before it happens. Never buy into todays great boom in farming but look for the next. First we had Kiwi fruit people made fortunes from the follow on mugs. Then remember it was goats for #crist sake followed by bloody Ostriches. I remember one mug wanted to pay me $1000 bucks for my old roadside nanny. I had more respect for nanny than sell her to him.
This was followed by the dairy boom where every man and his dog was spending huge bickies buying forests and other hopeless land turning them into dairy farms with a five pc return on capital. We now have the sitruation where they think they know best brigade buying land to turn into NZ type dairy farms in other countries because the people over there havent caught on as yet.
Macdunk
free range chickens and pigs
momentum is building up for a law change
watch the 10acre blocks boom.
trouble is most of the horsey folks already own those blocks.
My guess: dairy- again! The first 'farming fad' to make a comeback. Why? Because Fonterra is a globally sized marketing company that is behind the farmers. Unlike apples and lamb where alternative NZ suppliers bid down each other's returns, the dairy farmers are well organised and largely united. They have learned their market lesson not to raise cheese prices too fast and kill off overseas demand.
It is the same with kiwifruit who have now recovered by uniting under the Zespri brand and developing the innovative 'gold kiwifruit' and kiwiberries. Get the marketing to the supply chain sorted and returns to farmers will flow.
SNOOPY
Does it really matter what the next gold rush is in farming as PGW the merchant will make money selling the picks etc to the miner farmers whatever they farm.
Long term PGG Wrightson should be looking to the global seed market. If their R&D is in place now and they have the right research partners in the right markets, they could position themselves to be a world leader.
All in good time...
Agree with percy about PGW as core supplier, and snoopy re Norgate and South American butterflies. Now seems to be the best time to top-up on PGW for the very long term, won't have this opportunity again after europe rights itself next week ...
I hear pigs and eggs getting more popular too, neopole...
Don't think so.
The 10 acre block can only sell to those who can afford to patronise the local "Farmers Market". They can't sell to the chains - nowhere near enough volume. And how on earth would one get a slice of the action ?
Of course, if the 10-acre-block-owners all got together, they could form a "strategic alliance" - maybe even a co-operative !
Then we could go through New Zealand farming history all over again !
Yippee ! Deja vu ?
NZs biggest free range egg producer is bending over backwards to find people to produce free range eggs for them.
whats needed is 10 acres of flat land and no close neighbours or very accomodating neighbours.
same will go for pigs once a co- op of sorts is organised......... and its starting to happen.
heres the link
http://www.frenzs.co.nz/
What is the word on the RPC "overhang"? After all, these will either be sold or distributed to those who may choose to sell.
Gidday Enumerate
46,764,868/758,440,543 = about a sixteenth or 6%
I emailed the trustee asking for my allocation to then file in the bottom drawer, rather than a block sale.
If they don't do as I asked, I hope that 6% is a nice parcel for someone to add to, or start a stake with & maybe a fairish price may be extracted.
I suppose the trustee can't play god with peoples money & timeliness will be the key. Who can guess tommorows market??
Brilliant idea. There's an SSH notice today re progress on that 6.17%
Despite the current european unrest affecting global markets as well as the consistent pressure RPI and related holdings overhang has had on the PGW share price, it has held up well. That's as bullish a sign as I've seen. Watching and accumulating ...
It would seem to me this latest fiasco is simply reinforcing how basically incompetent the Wrightson Chairman and Board have been over the last few years. Keith Smith, Craig Norgate, McConnon etc. Perfect financial storm? Bullsh it. Rather an inability to do the job. Gross incompetence. SFF a prime example. And they know it, and admitted it at the AGM. I thought Norgate was a bit of a whiz kid. Plenty of arrogance and financial agression but an obvious and dissapointing lack of ability. The Fonterra Board must have wry smiles, having booted him out of the CEO position.
And how on earth did the McConnon family get sucked in to loosing $60million dollars?
Company Directors in good old NZ, they're a wonderful thing.
$60m is the sum owed to bondholders. To my knowledge the McConnon's didn't own any bonds. The McConnon's have lost their equity in RPI. However, this equity was smoke and mirrors anyway. If you follow the accounting cross company paper trail it never existed. Thus the McConnon's have lost nothing in this collapse as I see it.
SNOOPY
Snoopy, I would be interested in supporting info showing the McConnons haven't lost anything.
Brian Gaynor and Owen Hembry in the Herald seem to have it pretty right. Both good articles IMHO
.............................However Norgate has been quoted as saying he hasn't lost anything so he may have had an undisclosed put option to the McConnon family whereby they have been forced to take the $60 million of shareholder losses associated Rural Portfolio Investments with public investors taking an additional $30 million hit.
Nearly $1.0 billion of investor wealth in PGG Wrightson, NZ Farming Systems Uruguay and Rural Portfolio Investments has been destroyed since mid-2008.
These huge losses should not have occurred because Norgate and the McConnon family are experienced business people with good track records. However they repeated the same mistakes as many other New Zealand entrepreneurs, namely they expanded far too rapidly with too much debt and not enough equity.
In addition they had weak boards of directors, they expanded NZ Farming Systems Uruguay far more rapidly than indicated in the prospectus, there were too many related party transactions and the Rural Portfolio redeemable preference shares should never have been sold to the public.
Wealth creation shouldn't be too difficult, particularly in a long-established rural-based company, but our business leaders continue to shoot themselves - and outside investors - in the foot through complex corporate structures, having too much debt and a reluctance to appoint strong independent directors.
* Disclosure of interests; Brian Gaynor is an executive director of Milford Asset Management.
And this from an article by Owen Hembry in the Herald
.........It is estimated nearly $1 billion of investor wealth has been wiped out in the past two years in rural companies associated with Norgate, with one key business partner losing more than $60 million
.......................The McConnons provided the initial $40 million investment in the Rural Portfolio group, followed by more capital to a total of $60.2 million - an investment now lost.
Look at the RPI prospectus issued in 2004. The structure of the group is on pg16 and the cashflow statement (before and after bond issue) on page 19. That $40m figure put in by the McConnon's is right. However that 'capital' was shown on page 69 of the RPI prospectus to be preference shares, a form of debt. I believe this was pulled out of the company when the RPI bonds were issued as replacement debt, leaving control of RPI with the McConnons and Norgate, but all the risk with the bondholders.
SNOOPY
More specifically look at p19 column 3 the cashflow of Rural Portfolio Investment securities 12 months +18 days to 18 April 2005 (projected). That shows $85m of Redeemable Preference shares to be issued (to the public) and at the same time an $85m loan made to RPI being repaid. That to me is documentary evidence of of the McConnon's, Norgate and the banks cashing out and being replaced by the public bondholders as sole financers of the RPI holding company.
SNOOPY
There has been no public AGM of RPI, because this company is solely owned by the McConnons and Norgate with no public shareholders.
The expression " we've lost a shi t load " I assume was referring to share price declines of either or both of PGW and NZS and must have been made at a PGW or NZS shareholders meeting. In that sense I think the " we've lost a shi t load " is using 'we' in the 'royal we' sense. McConnon's baby RPI may have then been stareing at large on paper losses (which the receivers will realise). But when the baby 'died', it was simply handed onto the receivers. Any Norgate/ McConnon grief is for loss of control, not loss of cash.
SNOOPY
My version of events would explain why Norgate is on record saying he has lost no cash. The alternative explanation, that Norgate had a secret put option to shovel debt onto the McConnons doesn't sound likely to me. Why would the McConnon's, experienced business people, have agreed to such a put option in the first place? What would be in it for them?
SNOOPY
Thanks Snoopy.
Why dont you send your info to Gaynor etc and the Herald or better still, Stuff. It would make an interesting story.
The 'shi t load' comment was at the PGW AGM and that post was meant to be a light-weight reflection of the character of the man, with a comment like that at an AGM.
Irrespective of the amount lost, there can be no price put on the loss of reputation and 'face' by the McConnon family and Craig Norgate.
They are now simply additions to a sadly rapidly growing list.
Company Directors in good old NZ, they're a wonderful thing.
My info is all in the public domain Biker. I looked into it carefully at the time, weighing up whether to buy RPI bonds or PGW shares directly. I chose the latter. I haven't kept up to date with RPI since then. And the prospectus information was what was proposed to happen. I am not 100% sure that this is how the RPI finances actually ended up, since I haven't seen an updated balance sheet after the event. I would be interested to know from bondholders whether financial information about RPI was provided to them after the event, or whether they just got cheques in the mail and that was that. With the demise of RPI I will now add the RPI prospectus to my 'library of shame', an infamous cardboard box in the corner of my study. SNOOPY
Many thanks Snoopy for your explanation of what has happened. My faith in Human Nature is now restored.
This is a sad reflection. Thanks Snoopy.
Quitting this stock, as there seem to be just too many skeletons in the cupboard for our liking, despite better outlook (is that a mirage as well?) ...
Craig Norgate is no longer a major presence in PGG Wrightson. The past history has little bearing on the present, except a warning about putting cash into ventures like RPI etc. Holding shares may even be the most sensible, risk free, investment that you can make. PGG is now at a low price. Will quite possibly go lower. :confused:
When and if dividends return the price should move up. Has anyone any ideas when that might be?:)
Posters like to talk negative when stocks are down - it's the future, not the past.
Think RBD and how negative posters got.
Result for the year ending 30th June 2010 should be announced in August,if no mention of divie I would expect them to say something about it when you ask at AGM in October.I think the share overhang is built into the price.My concern is whether farmers have found their cheque books.Nothing you can do when farmers do not spend.As for skeletons in the cupboard I would think they are well gone.It is a bit like quoting unemployment figures.People go on about 6% unemployment but never mention 94% fullemployment.As has been mentioned before PGW is NZ's premier rural supply company,well financed,well managed,now well directed.Strongest Brand in rural supply.
PGG Wrightson has a money tree planted with NZ Farming Uruguay. It is paying for their South American expansion. They have a national presence in New Zealand. They have many different operations, including their Finance arm. The price may go down to 45 cents. If it does I shall buy more. We should try to keep a few companies in Kiwi hands. Even if we get a little lower dividend. At the least we can stroll round to their local office to see if it is still being painted and if the carpet has grown threadbare. Every bit of information helps! Take Courage!
I think the bad news on PGW is abating, Norgate is gone, the economy is looking a little brighter, RPI's shares will find a home, and PGW's share price may well turn the corner. The damage has already been been done. Why sell out now? It would seem to me more like a time to buy.
i agree the worst time is over Biker, but guess who will take RPI shares?i think it's such a bargain but i don't have that much money, agria?acc?amp?all the big buddies have no action recently,excepct Norgate who need cash immediatley
what r they waiting for?
I think you will find that in the next couple of days RPI's PGW shares are all sorted. Gaynor this am refered to the reciever flogging them to the 'institutions' so I suspect it is all done and dusted. Must say I hope to see a few myself.
RPI Sorted?
93493736 Shares sold for $48,616,743 (52CPS)
Definitely a lot of buy pressure this morning. If you topped up at 52/53 you're laughing now.
I think whoever pick it now will be laughing as well in future
Was just wondering what is the 97 million shares that have traded today? TIs this RPI or something different?
RPI holding dristibuted holders.
Institutions snap up Rural Portfolio's PGG Wrightson shares
http://www.nbr.co.nz/article/institu...-shares-122827
There's a link to a story on the NZX website which reads as follows:
•Rural Portfolio receivers sell PGG shares
Muppets.
Overhang gone and it's raining, things are looking up.
The NZ Herald states that the receivers sold 46.8M shares at 0.52 on Monday...doesn't account for the 106M in turnover yesterday.(or has there been a quick flick)
Gaynor criticises the large transaction
http://www.nzherald.co.nz/personal-f...0644990&pnum=0
.... also criticises the uraguay mangement arrangement as well ... something more relevant to PGW
referring to the reciever selling the PGW shares
What is overlooked is that on receivership the holders of these investments became unsecured creditors and as such had no right to the underlying shares anyway if thats what they wanted.
One poitn Gaynor made is that these things should never have been offered to retail investors (deemed to be not sophtisticated to understand etc) because they were not what they were made out to be
Of course they won't tell anyone before acquisition if they don't have to,...otherwise they can't get it at 52,,,so to me this article make no sense, what i doubt is the receiver is acting as who's best interest?
The new bank proposals from Pyne Gould would, it seems to me, leave quite a bit of room for PGG Wrightson to expand their finance business.
PGG WRIGHTSON SEEKS TO UNLOCK INVESTOR VALUE
Must be getting desparate if they need to use a restructure as a way to 'unlock' investor value
Becoming more efficient and putting greater focus (think that was the word they used) on business operations -.... jeez you'd think that they would do being that all the time .... this announcement implies that they haven't really been that efficient and focussed but i recall several restructures over the years so what's going on
Seeing a headline like that suggested that they were going to something eally exciting that really 'unlocked investor value' (sort of implies there is such a thing and that they think PGW shares should be trading a lot higher) //// like floating off or demerging parts of the business
Or maybe this is just the prelude to that sometime later this year
What a silly announcement and punters don't seem to have got too excited about all this value being unlocked have they
Wonder what the next trick will be to get the shareprice up .... better operational performance wouldn't be on the agenda would it ////aybe, just maybe. it is
Same with that PGC announcement about the mooted 'Canterbury Bank'. Their shareprice is loitering around the 43-44 cents per share marker. Maybe these people think that buyers are going to come rushing in whenever these announcements are made. The reality is people are wary - they've been burnt before and they want to start seeing some value in it rather than loads of hot air.
Logen Ninefingers and Winner69.
May pay you to go to NZX web site and look under rules. Read Continuos Disclose.Then you will understand why these companies have made those announcements.They are required to.
.......at least they're trying Winner......yes maybe a bit of hype over not much but still better than doing nout.........and yes it could just be the beginnings of "unlocking investor value".....hope so.
yes it could just be the beginnings of "unlocking investor value".....hope so.[/QUOTE]
Well said GR8DAY,I absolutely agree with you,yes well said.Once you have the team headed in the right direction it is easier for the team to achieve their goals.It has begin!!
My first reaction on reading the announcement was similar to W69's: Experience has taught me to be very wary when this type of psycho-babble, management consultancy speak, is used, i.e. phrases such as "unlocking investor value". Here are some choice examples I kept from another corporate re-structuring exercise that I came across once:
"...tentative corporate strategic thrusts...."
"...coherent reinforcing management processes.."
"...visible value system shifts..."
"...exploitable strategic insight..."
It all sounds mighty impressive, but pretty meaningless really.
PGG WRIGHTSON MAKES CHANGES TO INCREASE SHARE PRICE
For some time the Directors of PGW have been concerned about thr significant gap between the intrinsic value embedded in its operations and the prevailing shareprice. The directors believe that the intrinsic value of each PGW share is $1.00
The Directors have engaged leading consultancy firm McDunk & Associates to advise them with possible actions that the Company could take to close this gap.
McDunk & Associates studied all aspects of how the gap could be closed - ranging from how the Company communicates to the market in general to ascertaining what makes investors want to buy shares in a company.
As a result the Compnay has appointed Gertrude McGonagle as Chief Tea Lady. Gertrude's main role will be ensure that the tea leaves are aligned in the teacups in such a way that there is greater chance for the share price to increase. Her role will elso involve company communicatiions as McDunk & Associates has advised that communiactions from Chief Tea Ladies have more credence with market participants, mainly because they are perceived to be more credible and generally more understandable than other communication methods used.
Investor value will thus be unlocked from both an increasing share price and from the savings from a more focused and efficient Corporate Affairs and Investor Relations function. Direct savings from disengaging our current PR consultants and corporate communication advisors in excess of $1m will be made as aresult of this change
The Directors see thais as more than just a tentative corporate strategic thrust. This new approach is a coherent reinforcing management process and is a visible value system shift with exploitable strategic insight - the payback will be PGW shareprice closer to intrinsic value
good to see market surveillance and duty of disclosure working on behalf of the small people
winner69.The most reassuring post I have ever read.It wonderful to see the restructing wiil again put the company"in growth mode"I would feel that this announcement will be most welcomed by astute investors who will drive the SP to all time highs well above any intrinsic value.The corporate thrust statement also gives greater credence to the Exploitable strategic insight.Does this mean the tea lady has found her glasses?
Gertrude failing in her new job .... the tea leaves seems to have scared punters off more than the corporate PR hype as PGW sinks clsoe to its all time low
But maybe the tea lady is just that more credible
It is comforting they have not gone into a trading halt.!! I have the upmost faith that Gertrude will lead us to the promised land.I expect her band of loyal tea ladies to rally to the cause.
A new company flag, and lets hope a new company song( that we may join in the chorus )that will be sung at future company revial meetings to be held at local Methodist Church Halls weekly until such time the SP far excedes the instrinsic value.
I have been told by reliable sources that she fancied a bright red and blue tableclothe with a yellow blob in the middle for the boardroom table ...... but agrees that it might not be entirely appropriate ..... 'ah so our chinese directors might be offended .... now I get it' she said
Have reverted to glass tablemats with a koru engraved in them
I went to hear John Key in the Theatre Royal, Christchurch, a couple of weeks ago. He told us he had one less Mercedes Benz car now, with the one he arrived in suffering a down-turn with an energetic protester of 17 years jumping on the roof of said dented Merc. At least that is what is alleged and what the photos showed. We have to wait to find out if it actually happened, or if it was actually the tea-lady egged on by Wanda the fish. :)
The other thing that stuck in my mind was John Key saying that our primary production, milk and meat, would very substantially upturn in the next few years. Unlike the Merc which had a down-turn. I cannot remember his figures, but they were impressive. PGG-Wrightson is well positioned to benefit from the upturn. Hopefully not a 'flash in the pan,' but a steady increase in value. The sp is low. A time to seriously think of getting more. Further, and this is important I think, but it is only a hunch, that I shall get a dividend from PGG Wrightson quicker than either Pyne Gould or Pike River. ;)
The low sp is due to no dividend. Has anyone any idea of what a 2 cent dividend would do to said sp? So the point is, we can look forward to a short-term upturn in sp PLUS a longer term upturn. Based on primary production increase. I think it may be prudent to reduce my shares in Pyne Gould and increase them in PGG-Wrightson. :mad ;:
My misgivings about Pyne Gould is my view of the almost certainty that there will be no dividend for 12 months at least. Plus the near certainty of a cash call when the bank amalgamation takes place. An alternative, for a quick profit, is to buy Mercs that have been jumped on and repair them. Selling cheap now. I further think the 'cash call' could be 50% of sp value. Judging from the past record. :ohmy:
Your opinions please? :D
Your opinions please? :D[/QUOTE]
I do not think your wife will mind you replacing her damaged car with the ex John Key Merc.My only concern is has it been modified to run on Pike river coal?May pay to check it could run as a wood burner, as water blasting Pike coal may mean it is too damp to burn.I am sure MARAC will do you a good deal on finance.