Forum Archive Index - May 2004

["Fiona Phibbs" <fibz@xtra.co.nz>]

Hi Harley

 I am not sure
> you can fully compare PGG and WKL with WRI  as both companies are not as
> diversified in their operations.

True WKI and PGG are not as geographically diversified as WRI. However
surprisingly this is not really significant when comparing their results -
if the farming sector sneezes the both tend to get a cold and although PGG
is south island based and WKI north island based their margins are
remarkably similar, suggesting that regional factors such as floods,
droughts are not as significant in affecting results as overall movements in
the industry.  The companies are involved in almost the same activities
including - wool, livestock, real estate, finance, rural supplies, seeds,
grain etc, but admittedly this may differ in scale to some extent.  It would
be certainly more relevant to compare WRI against these two companies than
to compare it against Affco or Sanford which are included in the same sector
for comparison by some members of our "much revered" stockbroking industry?
Don't you agree?

regards Dean


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