Forum Archive Index - June 2002

["nick" <helmett@xtra.co.nz>]

   As somebody who recommended this stock to the group back in july 2000 (see bottom of post)  i would like to add my comments on the present situation. Wrightsons now are in a much better position than they were two years ago, however this is largely reflected in the price. 

     The other Nick(tennyson) is i believe right in thinking this is a good yield stock for the forseable future. Sure the dollar is rising but in the long term farming is in good shape and a reasonable yield is sustainable.

  Incidentally RBD would be my other pick for sustainable high yield .  As a growth stock though Wrightsons has finished its spurt, but its not hard to invisage the stock being over two dollars in another three or four years, so dont assume just because its high yield there will be no growth.

      Heres two posts i made back in july 2000

 Nick

 

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The sunday star times reports that many analysts are still unsure about wrightsons. Sitting in their offices or huddled over their cellphones outside a winebar what do these characters really know about what is happening in New Zealand? My partners family consist of generations of farmers spread throughout the south island, they are far more tuned in to events than some spotty faced analyst just out of school. For years all these relatives have done is complain (like all farmers) Recently however they have become noticably more cheerful, on a recent visit to one of their farms near ashburton i noticed plenty of new machinery etc. The analysts will slowly latch on that their is real change down on the farm, however by then share prices will of risen that much higher, the farmers on the other hand already know that the good times are back and have been spending up big with the agricultural suppliers. Number crunching is all very well but often a positive feelgood factor is more important, The agricultural stocks are a prime example of this nick

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For some time wrightsons were in the doldrums, on many sharebrokers

sell lists. That has well and truly changed and the company is now

looking good for several reasons.

 

 1. Farmers after years under the cosh are suddenly suffering from rare optimism.

They are starting to spend up on new equipment etc and a supplier like wrightsons

will be a major benificiary. My partners relatives are farmers and they are very

confident

 

2.  Guinness peat i believe have plans for the company in which they have a sizable stake.

Could be in connection with a big australian rural company.

 

3. The price of shares has begun to rise, but is still way down on a few years ago.

 

4. The next result out soon is expected to be a strong one.

  These factors combined make wrightsons a good bet at anything under 50 c

they will not rise that fast but i expect them to gradually creep upwards

 

 disclosure i recently bought some for.45c

 

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