Never put all eggs in one basket!
Quote:
Originally Posted by
Snoopy
To paraphrase one of your earlier quotes from Agria. No problem until the debt needs to be refinanced, which as far as the LIC loan is concerned is next week.
I don't believe a successful partnershp between Agria and PGW relies on cheap labour to make it work. For PGW they want to use their existing grass breeding expertise to breed new blends of grass for the Chinese climate. But having the right seed is not enough. They needs a partner who understands Chinese farming business structures and who know the right people in China. This is what Agria brings to the table for PGW. Agria do their own research in China but this seems to be about breeding corn, not grass.
I believe the macreconomic reasoning of your investment strategy is sound Agrainvestor. My question is whether puutting your investment 'eggs' in the Agria 'basket' is the best way to do this?
SNOOPY
>>They needs a partner who understands Chinese farming business structures and who know the right people in China.<<
Perhaps that is the reason for the new CEO.
Most of my eggs are in Australian Bonds. My Agria and CGA shares are a small aggressive bet on the chinese Agrar sector. I know this investment is not riskless but if PGW is successfull the risk could be rewarded during the next months and if the new CEO of Agria can develop Agrias homemarket this stock can explode.
What si the reason that you are so engaged in analysing Agria and PGW ? I don't think that you have a lot of Money in PGW. Are you a shortseller ?
I have nothing against shortsellers, it's more out of curiosity.
Here are some answers from David Pascale:
What kind of action is planned to bring the shareprice back to 1$ ? [ Results were released and 20-F filed. That was the first step. Management transition will be finalized. Growth will drive disclosure from there. ]
Will we see a share repurchase programm during the next weeks ? [ None has been disclosed to date. ]
During the next month you have to renew a lot of debt. Is it possible that AGRIA have problems with the banks ? [ Debt was related to PGG Wrightson investment. There is no issue anticipated with the company's bank syndicate. ]