Sharechat Logo

Sales inspire Tasman Agriculture investors

By Chris Hutching

Friday 22nd September 2000

Text too small?
Tasman Agriculture's dairy farm sales programme appears to working the right magic for its share price which bounced up yesterday to $1.35 after broker presentations by managing director Ray Parker.

The share price has languished around the 80c level in spite of net tangible asset backing of $1.70 a share. Brokers said the company appeared to have hit the right note by selling while dairying was at a high in terms of payout expectations for the next two seasons.

Rural real estate agents met Mr Parker in his Dunedin office mid-week to review the sales programme and receive the information that he has been disseminating at broker presentations in recent days as part of the company's recent information blitz ahead of its farm auctions.

The company is forecasting net profit for the year ending May 2001 of $10.4 million. If dairy farm payouts reach $4/kg milksolids as forecast this would translate to net asset backing of $2.18 a share. A $4.50/kg MS payout would translate to $2.94 a share.

The industry is generally expecting a payout of around $4.40/kg MS.

The first six auctions have gleaned $18 million and galvanised values for negotiations with a number of under bidders.

Brokers expect more information from the company next week as it continues to cash up at the behest of major shareholder Brierley Investments.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Sky continues sports drive with extension to netball rights
Apple's asset-shuffling puts $270m value on PowerbyProxi
Fonterra lifts payout forecast on improving global dairy prices
22nd October 2019 Morning Report
NZ dollar hovers near 64 US cents in favourable risk environment
Broader review powers eyed for Climate Change Commission
MARKET CLOSE: NZ shares edge lower as global ructions weigh; Tourism Holdings sinks
NZ dollar rises as markets bet on US interest rate cut
Fonterra seeks further changes to dairy act
Tilt, Oji say transmission changes may discourage new generation

IRG See IRG research reports