Looks like SFF is the nail in the coffin ontop of $400m debt. :eek:
Printable View
Looks like SFF is the nail in the coffin ontop of $400m debt. :eek:
On the other hand they have a dominant position servicing NZ's most important industry. They need to sort themselves out, soon.
Oh God, I feel another ICONIC company bailout candidate coming.....has Craig got Johns phone number? :D:D
Here's David hargreaves take on it:
http://www.stuff.co.nz/4851777a1865.html
An unconditional deal is just that, with all conditions of purchase being agreed upon,
If one party or the other backs out then the injured party can lodge proceedings for the total ammount and more than likely win. PGW can and look like they are trying to come to another agreement over damages which tells me how stupid they were in the first place.
Farming is a peculuar industry which revolves round short lived cycles. When you see beef farms turned into dairy or visa versa you know its time to get out.
Farming in most countries is a peasant occupation, with very little real return on capital.
PGW set investors up in dairy farms overseas in competition with our own farmers, so for that i have very little sympathy for their plight, but feel sorry for the share holders that they succered in. Macdunk
The cost of setting up the farms in South America is very similar to NZ. There is alot of hidden cost that NZ investors do not know about and did not include in the numbers.
No really sure what you are on about Doc. It is w-a-a-a-y cheaper in South America to set up a dairy farm because of the land prices. Perhaps you were confused by the NZS announcement about needing to raise more debt to complete their farm developments? This is nothing to do with poor planning or misreading the cost of dairy farm conversion.
It is because NZS has scaled up their farm management program since the prospectus and capital raising was done. The problem NZS have is that managment have gone in boots and all and are developing a lot more land than they said they would. Thus the original amount of equity, while quite sufficient to carry out their original plans is now insufficient because of the upscaling of the whole company. Time will tell as to whether the upscaling was wise in hindsight or not.
SNOOPY
I think you might find that the recent drought over there increased their costs above their expectation level. New country new problems for inexperienced players in a new country. Pgw should do well out of it flogging it off to the we know best brigade. Dairy has hit rock bottom Fonterra has a mountain of milk powder it is trying to sell. Farmers face a bleak time in the short term which filters down to their suppliers. Macdunk
Jeez Wayne ... PGW now only a $200m market cap company
Priced for eventual demise .......... or cheap as
Let the market talk