New Zealanders choose to borrow billions from overseas to support current level of living - cars, houses, TVs, travel etc.
Something has to give.
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Offshore finance is needed because NZers are not investing enough onshore. Of course, NZ shareholders could organise to keep ownership of NZ companies onshore too. If 10,000 investors put up $50,000 each into an "Association of New Zealanders Investing into New Zealand", that half billion could be used to slowly build up stakes in strategic companies. Such an association would have to use its firepower very carefully, not scatter it all around like diversified funds are obliged to do. The objective would have to be building cornerstone stakes, not trading for short term profits. And if those investors agreed to limited rights of withdrawal, and reinvestment of most of the dividends, things might be achieved over time. It would only work if the constitution was scrupulously fair and honest, so the funds or control could not be hijacked later for other use than looking to NZ's long term interests, which would take quite some thought. But, as a comparison of scale, if even 100 people from these forums put up $10,000 each, that would only create $1 million, which is no use. So I have no idea how such a group of investors might be put together, nor if that much money is available to be pledged to such a use. It would need someone to step forward, hold up a flag, and see what interest it attracted. Could be a pretty useful investment over time, too.
Yup $300m a week we are borrowing to fund our over bloated public sector & Govt spending (good ol Labour for increasing the number of bureaucrats, the only growth they obtained in 9 years)
We are "westernized" which means like parts of Europe & the USA we are a credit dependant society, & it showed when the property sector crashed leaving all the highly leveraged dead in the water.
We need to look to Australia & start saving, if we are to save the likes of PGW, we should have NZ based kiwisaver funds buying into such companies every quarter.
We cant keep looking to Nanny state Govt to tell us what to do & save for us, the superannuation has probably another 10 years left, so we have to do it ourselves.
National stepped in & saved South Canterbury Finance with $1.8b, but that had wider implications if they didnt act, so would they save PGW just cos they are debt heavy & have fundamentally failed to deliver?
Why is it considered treasonist for Chinese to buy into NZ, when Japan has been buying out Govt bonds & getting good interest etc, or Americans have been buying property for many years. I didnt see the greenies & socialists protesting about them, so are we just ignorant racists, when we should be bloody grateful?
Without foreign investment we would be exactly where Zimbabwe is now, remember when they were the "food bowl" of Africa?
Norgate & RPI had too much debt when buying into Wrightsons & RPI were heavily dependent on the Wrightson dividend to cover there lending costs
Time the hard questions were asked about how PGW was run, & not about Chinese investment
All the Govt can really do is a like for like policy with China, meaning they cannot outright own the land, but i suspect the FTA wont allow it!
You are exactly right - PGW's fortunes will ultimately mirror that of NZ's agricultural sector. It is now trading at a cyclical low in terms of share price but ever increasing commodity prices will ultimately feed through to increased farm spending. The farmers cannot defer spending forever.
Read Fran O'Sullivan's article very carefully - the seeds business alone is worth PGW's market cap today.
http://www.nzherald.co.nz/business/n...ectid=10704960
Generally speaking, the main purpose of investment is to make money. As an investor, you need care about the relative merits/disadvantages of selling PGW shares to Agria or retaining the shares.
If Sir Anderson cannot make a diference to PGW it is probably the time to sell it. Do not blame the Government for not rescuing PGW, and do not blame Chinese for buying PGW (by the way, Agria is a Singaporean-controlled company, not a Chinese one). Those who want to keep PGW a pure NZ company should open their wallets, rather than making useless, emotional statements. Emotional people are unlike become successful investors.
Unless an alternative bidder joins the the war Agria would have no difficulty in increasing its share holding to 50.01% because PGC has agreed to sell it 18% holding.
I agree with you Mouse. Unfortunately not selling looks like cutting off our noses to spite our faces on this one.
OK thanks for that, but let's be clear. New Hope is a substantial business arm of the Chinese Government. Agria is the private playgroind of Alan Lai. Agria and New Hope are not the same thing!Quote:
Page 53 of the 'Target Company Statement' tells us that Mr Liu Yonghao is vice Chairman of MinSheng Bank. New Hope is the largest shareholder in MinSheng Bank, Chinas seventh largest commercial bank.
Further, page 53 again, Mr Liu is also a member of the Chinese Peoples Political Consultative Conference economic committee. Crony Capitalism.
So there is a convergence between business and politics in China.
SNOOPY
Balance, thanks for the link.
Newman, people who own PGGWrightson shares have little alternative, in my view, to accepting the offer. That is the 'investor' view. But I can also have a view as a Kiwi. That view is the sale to Chinese interests could seriously deflect the PGGWrightson research from NZ to China. Which will cost us Kiwis a packet.
there goes second takeover offer
http://www.directbroking.co.nz/direc...spx?id=2731872
Belg .... do you think that Agrium actually carried out due diligence ..... doesn't say they actually did before deciding for reasons 'specific to them' for not proceeding with an offer
Maybe they did the due diligence and came to the conclusion that PGW is (as you told me off for saying so) well and truely f###ed and beyond redemption and not worth buying
A cyclical play in a cyclical market you say but but if well and truely f###ed cycles don't really matter to PGW as it lurches from one disaster to another .... like even when things were pretty good a while ago they didn't do that well.