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From: | "Richard Hooper" <hoop@ihug.co.nz> |
Date: | Fri, 23 Aug 2002 10:40:37 +1200 |
Hi Snoopy Congratulations on a well researched investment (WRI). Wish you and fellow investors the best of returns in the future Great to see success events like these. Cheers Hoop ----- Original Message ----- From: <tennyson@caverock.net.nz> To: <sharechat@sharechat.co.nz> Sent: Friday, August 23, 2002 5:35 AM 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!" > > > > -------------------------------------------------------------------------- -- > To remove yourself from this list, please use the form at > http://www.sharechat.co.nz/chat/forum/ > > ---------------------------------------------------------------------------- To remove yourself from this list, please use the form at http://www.sharechat.co.nz/chat/forum/
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