Originally Posted by
Beagle
April was incredibly wet mate...can't recall it being that wet, (at least in the Auckland area and by accounts I've read throughout much of N.Z.) for a VERY long time.
Key takeaway here is no matter how well diversified an agri stock is, it isn't ever worth more than the time honored PE of 10 for a cyclical stock.
Shares have got well ahead of themselves. Disc: Don't own but might consider holding on a pullback to ~ 50 cents.
Wonder how they're getting on with their huge legacy burden of their superannuation fund ?
Dewd leaving and now the guidance downgrade, notice how they could have announced both on the same day but chose not too ! Classic case of managing disappointing information flow. If they had of announced both on the same day the effect on the SP would probably have been more pronounced.