Forum Archive Index - August 2002

["Craig Hoskin" <craig@infobahnz.co.nz>]

Title: RE: [sharechat] WRI - Snoopy

Ignore that ... :-)

Somehow stpud Email programme jumped to the next message

Sorry abouyt that

|-----Original Message-----
|From: sharechat-owner@sharechat.co.nz
|[mailto:sharechat-owner@sharechat.co.nz]On Behalf Of
|tennyson@caverock.net.nz
|Sent: Friday, 23 August 2002 5:36 a.m.
|To: sharechat@sharechat.co.nz
|Subject: Re: [sharechat] WRI - Snoopy
|
|
|Hi Ben,
|
|>
|>I remember a great analysis you did on Wrightson some months back.
|>I'd be interested in hearing your views on the latest profit
|>announcement:
|>
|>
|
|Yes, I usually shy away from making 'recommendations' as what may be
|a buy for the income investor might be a sell for the growth investor
|and vica versa.
|
|However, I certainly hope some of the sharechatters took up my
|suggestion and got on board WRI a couple of months ago!   15% yield
|going into the third best year for farming in two decades with the
|company being a market leader, and having low debt?   There is no
|such thing as a "no-brainer" investment decision, but buying WRI two
|months ago would have to be just about as close as you could get. 
|There were plenty of folk fretting about the general election at the
|time but that with hindsight was just market noise, and allowed
|investors who aren't distracted by such things to pick up some
|bargains.
|
|The WRI result was always going to be good.  The question is what
|happens from here?  The problem with WRI has traditionally been
|return on equity.  It hasn't been flash and that means that it can be
|a fine balancing act between making a strong profit and a loss.  My
|other concern with WRI is the board.   They are lacking in diversity
|of experience.   Nevertheless, I think CEO Alan Freeth has done a
|good job.  I see the reduced turnover as encouraging.  It indicates
|WRI are focussing on profits, not sales at any margin.
|
|Nevertheless, there is still no external director of WRI with a
|strong retail background, and no-one there with a good science
|background to independently assess, for example, the risks of their
|genetically modified grass project.  I get the impression that WRI
|had a good year 'in spite of their directors' and not because of
|them.  It will be interesting to see if the non-executive directors
|try to vote themselves a bonus share scheme at this years AGM as just
|reward for all the hard work they have done (cough, cough).  It's
|easy to surf a rising wave.
|
|I'm quite happy to hold WRI at these levels.   I don't see a huge
|upside from here, but then again if WRI is to be brought into line
|with some of the other rural retailer shares on the market, perhaps
|there is a bit of swell in the old surf yet?   Maybe Phaedrus would
|like to comment?
|
|SNOOPY
|
|
|
|
|
|---------------------------------
|Message sent by Snoopy
|e-mail  tennyson@caverock.net.nz
|on Pegasus Mail version 2.55
|----------------------------------
|"Stay on the upside of the downside,
|Anticipate the anticipation!"
|
|
|
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