Will todays steal be tomorrows fraud? Maybe I should 'hold.' Accept the loss?
What will "The Market" do? Up or Down? You see, it is only housekeeping and cheaper than money on the horses. There are also 'certainties' there of course.
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I do not follow the horses however I think you have 1 to 3 odds with shares.Share price will either 1 go up,
2 go down
or 3 stay the same
then the life of the sharemarket is a lot longer than a horse race, but good blood line,good training,good food pays of in both fields .
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Having around 10,000 shares is a good number. You can work out easily how much you have lost. My buy in price was 61 cents average. Close today was 47 cents. Ergo, I have lost $1,400 if I sell today.
Now, should I buy more and average down, or hold and wait for a better tomorrow?
I'm afraid I don't have those answers. If your happy to lose it (and only you know that ) then great.:)Quote:
Will todays steal be tomorrows fraud? Maybe I should 'hold.' Accept the loss?
What will "The Market" do? Up or Down? You see, it is only housekeeping and cheaper than money on the horses. There are also 'certainties' there of course.
If I was unsure about holding a company I would sell. It sort of changes your approach, you start off angry but, you get over it, you can sort of accept it and then when you start feeling OK with it then that is the time to try and make it back.(if that is what you want to do) but you dont have to make it back the same way by holding the same share or averaging down.
"a contractual maturity analysis as of March 31, 2010 (cf June 30 2009)
PGG Wrightson had $412.2m ($340.6m) of financial liabilities, including bank loans, debentures and bonds maturing within a year out of a total of $477.9m ($506.6m) worth of financial liabilities. This includes $65.5m ($83.0m) worth of deposits and other borrowings, $32m ($71.5m) of bank loans, $131.9m ($123.6m) of bonds and $178.8m ($221.1m) worth of debentures."
"The company also had $454.7m ($426.4m) worth of loans and receivables due within 12 months of March 31 out of a total of $557.9m ($575.4m) worth of total financial assets."
On rereading the reference I think these figures are for PGG Wrightson Finance, not the group as a whole. Comparisons from 9 months previously (inserted) are of interest.
SNOOPY
An interesting discussion on what will happen to the PGW Share Price.
To me PGW biggest problem is that it has never made the level of profit it should. The amalgamation of Wrightsons Pyne Gould and Reid Farmers was ment to improve efficience but I dont think it ever eventuated.
This year it predicts a $20m profit with 750m shares on issue. i.e. 2.6 cents per share.
Maybe next year $50m i.e. 6.6 cents per share.
If the share price is to go any where the board needs to be working out how it will produce a profit of $100m to $150m to provide some value to share holders.
Matching the loan terms of borrowers and lenders is the perpetual task of a finance company manager. I would give Mark Darrow of PGGWF top marks here. It looks like he will avoid serious mismatches even if the vote to extend some of the borrowers terms is lost on July 28th.
SNOOPY
[QUOTE=rabcat;312107]An interesting discussion on what will happen to the PGW Share Price.
The amalgamation of Wrightsons Pyne Gould and Reid Farmers was ment to improve efficience but I dont think it ever eventuated.
I read somewhere, cannot remember where, that 75% of amalgamations etc result in a loss for the shareholders. By amalgamation I mean that shares are issued, little cash changes hands. They then have the problem of getting the various companies working together. A good example of this problem was Time and AoL. You get bigger and bigger until eventually you Burst.
If this is true, Burst, what will happen to PGGWrightson plus of course our next little amalgamation of Canty Savings Bank and Pyne Gould?
Comments please. Plus examples of successful amalgamations.
[QUOTE=mouse;312116] you only have to remember the very successful amalgamation of Pyne Gould Guiness with Reid Farmers.It is interesting to note that George Gould who oversaw it is now on the board of PGW.
Successful mergers;well you only need to look a local company EBO.You must also remember PGW is made up of the amalgamation of williams and Kettle,Fruitfed supplies,Pyne Gould Guiness and Reid Farmers,Wrightson which of course came of Wrightstephenson and National Mutual and somewhere in there Dalgetys.
I think we are on track.It is just how far down the track are we/.Good people,Great company.The Time Warner AOL merger failed because each company failed to understand the other.AOL was pie in the sky.Time Warner were a media company and AOL were internet.Huge disaster.
Back to EBO.In 1990 EBO had a market cap of $2mil.Today it has a market cap of $312mil.
[QUOTE=percy;312121][QUOTE=mouse;312116]
you only have to remember the very successful amalgamation of Pyne Gould Guiness with Reid Farmers.It is interesting to note that George Gould who oversaw it is now on the board of PGW.
Well I hope you are right and PGW can turn into a sucessful company. I hope George Gould can make a difference.
It seems PGW have many good parts such as the finance company, Fruit fed, the seed business yet the sum of the parts does not produce a good result.
They have a large turnover ( over $1 Billion)huge market share but produce minimal profits. Something is wrong and the board needs to fix it.
I hope with the annual report we see some leadership from the board on how they intend to improve the bottom line otherwise the share price will continue to slide