Hmmm looks like I have to think about it....damm I hate trying to think.
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Not as bad as I was expecting. I'm in at 32c
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.
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
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
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