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Re: [sharechat] WRI - Snoopy

From: "m&j.bacon" <m&>
Date: Thu, 22 Aug 2002 18:00:50 +1200

Hi all,
Be very surprised if PGG does not have a result similar to WRI
next monday for all the same reasons.


>I remember a great analysis you did on Wrightson some months back.
>I'd be interested in hearing your views on the latest profit

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

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?



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Anticipate the anticipation!"

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