This is very thinly traded. Whoever has been selling down probably took a breather.
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This is very thinly traded. Whoever has been selling down probably took a breather.
Ouch! for PGG
"Farm sales have declined 43% over the last two years"
https://www.interest.co.nz/property/...y+29+June+2024
My feeling is that farming has its debt under control. Kiwifruit is doing its thing so I haven't heard people moaning too much. And the local Farmlands and Fruitfed carparks are starting to look more lively.
It's another story though in my other world (Auckland Remuera). The mums are starting to get a bit emotional over the financial stresses around mortgages and school fees etc. And hear about people losing their jobs.
The sp has been over sold, but that goes for many NZX companies.
Catching a bid
Far too much speculative selling and then buying going on in my view. While it is nice to be 'back in the black' on my overall investment position in PGW, headwinds remain IMV;
a/ No dividend likely.
b/ Banking covenants remain busted, although I expect the banking syndicate to grant PGW a reprieve on these until late 2025. And if things have not stabalised by then, expect he pressure to come on.
c/ Live animal export ban in Australia, will see a massive upswing in the WA sheep kill and a new downward squeeze on Oceania sheep prices.
d/ The re-entry of Brazil into the global beef trade will see significant pressure on NZ's beef export markets going forwards.
Better times for fruit growers with the so called free trade deals with Europe coming into effect. But there will be no overall return to the 'golden times' of FY2021/FY2022. Best to wait until the FY2024 results are in and the FY2025 outlook is out IMO before adding. Yes you will 'miss the bottom' by doing that. But it is the trade off you make for more certainty of forward vision (the outside chance of a cash issue to shore up the balance sheet should not be entirely dismissed).
SNOOPY