Forum Archive Index - August 2002

["Richard Hooper" <hoop@ihug.co.nz>]

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!"
>
>
>
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