Forum Archive Index - September 2003

["jcurtis@q-ed" <jcurtis@q-ed.com>]

Can anyone enlighten me on Norgate.

JC

-----Original Message-----
From: sharechat-owner@sharechat.co.nz
[mailto:sharechat-owner@sharechat.co.nz]On Behalf Of
tennyson@caverock.net.nz
Sent: 22 September 2003 09:38
To: sharechat@sharechat.co.nz
Subject: Re: [sharechat] WRI


Hi latham,

>
> Craig Norgate et al are attempting to puchase 19.5% of WRI
> currently @145c - (cf 132 close)
>

If true, this won't come as any surprise to the sharechatters.    I have
been beating the WRI drum for many months, so hopefully lots of you
out there will have the shares by now.    Norgate is only following us.

Of course with investment nothing is certain.   So you would have been
a brave person (albeit now a rich one) if you had sunk all of your
money into WRI.    But it has been hard to argue that you should be
*underweight* in WRI at any time over the past year for those who took
a really close look at the fundamentals.

WRI has been a sitter for some kind of 'leveraged buy in' for months
now.    Macdunk has been making the point that property is the way to
go because you can leverage your return by using the banks money to
buy into housing.   His logic is the right and the same logic now applies
with WRI.   The dividend will cover the interest on your borrowings for
buying WRI shares.  This means that if the share price goes up you
get to pocket the price rise without putting your own capital up.  I
wouldn't mind betting that any 'Norgate Consortium'  is using exactly
this strategy.

I wonder how the WRI board will take such a buy in?  For some time
now I have thought there are too many accountants and lawyers on the
board, and no-one with a serious marketing perspective.    True,
Norgate is also an accountant by training.   But I believe he could use
his dairy industry savvy to give some of today's WRI board the boot up
the bum they need.    If you think that is harsh, remember that today's
board are substantially the same lot that presided over the disasterous
regime of previous CEO 'I've forgotten his name already'.   Four of the
current seven board members are coming up for their 10 year badges.
I'd like to see some board level succession planning in the form of a
few new faces around the board table.  The appointment of Norgate as
a director would be a good start IMHO.

SNOOPY

discl: hold WRI





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