Forum Archive Index - May 2003

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi Mike,

>
>
> Farmers brace for rising kiwi 
> 
> 13.05.2003
> By LIAM DANN 
> The rural sector is steeling itself for further surges in the kiwi
> dollar, which yesterday hit 58USc for the first time in more than five
> years. 
> 
> "It looks like it's heading for 60c," said Affco finance manager
> Robert Gerrie. "We're bracing ourselves for that. 
> 
> "Every cent it moves makes us more uncompetitive." 
> 
> Federated Farmers vice-president Charlie Pedersen said currency woes,
> combined with drought, left some farmers facing one of their worst
> years for more than a decade. 
>
>

Note "some farmers"

>
> 
> "It's as tough a year as many farmers have ever had to deal with." 
> 
> Only the fact that farmers were coming off two good seasons was
> buffering the sector from the kind of downturns suffered in the late
> 1980s and early 1990s, Pedersen said. 
> 
> Meat exporters are being hit harder than dairy farmers. 
> 
> 


So what we have here is a statement that things are going to get very 
tough for meat processors.   

Yet the header on this thread refers to all the listed farm supply 
companies.    Now here is a question for you Mike and all the other 
rural doubters.

If next year is going to be tougher for farmers than the last two, and I 
don't deny that it will be, then how cheap does the share price of WRI, 
PGG, WKL and Allied Farmers need to get to reflect this?

Would you not buy into this sector at all?   In other words WRI at say 
5c, would still be too expensive for you?   Or do you think the price of 
WRI should halve to say 55c before you would be interested?   What 
do you think is a reasonable price for WRI in the circumstances you 
have outlined?   Well?

SNOOPY

discl: hold WRI

--
Message sent by Snoopy 
on Pegasus Mail version 4.02
----------------------------------
"You can tell me I'm wrong twice, 
but that still only makes me wrong once."


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