Forum Archive Index - August 2002

["m&j.bacon" <m&j.bacon@xtra.co.nz>]

Hi all,
Be very surprised if PGG does not have a result similar to WRI
next monday for all the same reasons.

MB

> > 
> >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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