I think that is a good approach.
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Just thought as Roger had quoted them,he should have quoted what I thought was important.
I would think the dairy collapse would work more against PGW,than HNZ who have very little exposure to the sector..
From Tru-Test's outlook;
"the current uncertainty in the NZ dairy sector is having on the NZ farming sector.While we expected the NZ market to be impacted this year the extent of reduced farmer spending has been greater than expected."
Agree 100%.
Percy with the greatest of respect mate HNZ are on public record with their half year report back in February saying they are targeting loan growth to sharemilkers. The master has this right, IMO brokers have not taken into account loan write-off's from the dairy sector for FY16 and FY17 in HNZ's projections...recall the really brutal dairy declines have only occurred in the last two weeks or so.
Anyway back to the thread topic. Yes its clear that FY16 will be a little more challenging for PGW but management pointed out in their recent FY15 guidance update the company is very well positioned to handle the challenges of 2016, or words to that effect.
I expect PGW earnings to be stagnant. Even if they go as low as 4 EPS I would still be happy. That is still 11.8% gross return on my average purchase price.
F.Y.I
http://www.stuff.co.nz/business/farm...ach-high-of-94
Store lambs reach high of $94
http://www.stuff.co.nz/business/farm...et-for-farmers
Stable wool market for farmers
James - last year they paid out 4c plus 1c special so that could happen again but you are right 4c is wonderful in its own right, just bought some more myself, figured was better than sitting in my Rabo call account.