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PAG - PrimeAg Australia

Discussion in 'Stocks I-P' started by numbercruncher, Feb 8, 2008.

  1. numbercruncher

    numbercruncher Beware of Dropbears

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    Soft Commodities have all the hallmarks of being the next hot asset class.

    So much rain lately is adding a positive spin to much Australian Agriculture.

    http://www.primeag.com.au/offer/overview/

    http://www.theaustralian.news.com.au/story/0,25197,22973590-5014000,00.html
     
  2. Agentm

    Agentm

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    well they got the water they needed, but it was a touch too much from 0% to 100%. been watching PAG since it listed.. accumulated a tiny parcel to get the feel of this industry which is new to me.. small steps..
     
  3. grace

    grace

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    I know quite a bit about this one. Peter Corish (Chairmen) would have to be the luckiest man alive to sell his property "Brayland" into this company at about 70% more than what he paid in about 2 years (don't quote me on time, but about that). He bought "Brayland" for $19mill, and sold for about $32mill from memory. In that time, irrigation properties have DEVALUED! I know that valuations were done, but I question the value that was put on his properties. The valuer's head is on the chopping block I guess. He sold a couple of others as well.
    Noone I know has seen that sought of increase recently as there has not been any water (and at the time of prospectus, there still wasn't). Per the prospectus he gets $500 000 to go shopping for more properties. What fun! I guess your investment comes down to profits though. Glad it has rained and one dam is full. Good luck to all holders though.
    You know my parents (now retired) grew wheat in 1993 and sold for over $300 tonne. Wheat has only recently passed that. It is still a joke what farmers get for wheat these days, when the major inputs have sky rocketed since the 90's. I personally see difficulty in this company getting a so called 10% return when they have overpaid for their property in the first place. Just one persons view.......
     
  4. josjes

    josjes

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    There are plenty of other Agricultural established companies on the ASX that deserved your money than this newly listed.
    Do your own research on ABB, AAC and GNC. Look at these 3 company chart, if you must invest in Agricultural sector, I'd rather put my money on these 3 companies than an untested, unproven newly listed company.
     
  5. The Once-ler

    The Once-ler

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    On the 22nd of January, with the announcement of Fairburn dam spilling, PAG said,....


    "“While the heavy rains and flooding has resulted in some crop damage on
    ‘Brayland’ the upside is we can now plan our crop production well into the future
    with more certainty,” he said.
    Mr Corish said the company will make shareholders aware of the full impact of
    crop damage on “Brayland” once the flood waters recede, which is expected to
    be in the next few weeks.".


    I wonder what happened to the investor update? I was thinking there would be some massive damage to the cotton crop on 'Brayland', and the bad news would be a good chance to enter PAG after a dip in share price, because in the big picture, the floods and full dams are much bigger plus than one ruined cotton crop. Perhaps sorghum was the main crop instead of the more flood prone cotton, in which case, the sorghum would recover.

    The general concensus is that PAG have over paid for the land, but with the massive increase in grain prices, what is the land worth now? Some big profits coming if things go right for once.

    I don't hold, but thinking of entering.
     
  6. Miner

    Miner

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    Dear

    Folks

    Any one is following this PAG and comment on its prospects considering there is a world wide food shortage coming and if PAG has the short gestation period to make a killing of this situation ?
    Their main product is wheat and that is not alone sustainable to increase the bottom line.

    Any thoughts will be welcomed.

    Regards
     
  7. yang

    yang

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    Miner,

    have been thinking the same thing about this stock - I have been meaning to sus this out a lil more... I rekon it could be well worth a small parcel

    yang
     
  8. grace

    grace

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    Wheat prices have gone up, but so have FERTILIZER, FUEL, CHEMICAL incrementally more. Don't expect good returns in wheat because of rising costs unless wheat goes over $1000/tonne. Just my thoughts, and we are wheat farmers.....
     
  9. MEGALADON

    MEGALADON

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    Just looked into this one for the first time.

    This company has significant agricultural land holdings and their focus finely balancing water rights and crop yeild.

    I wonder if they have undertaken any mineralisation studies on their land holdings?
     
  10. System

    System Administrator

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    On November 5th, 2013, PrimeAg Australia Limited (PAG) was removed from the ASX's official list following the implementation of the scheme of of arragement whereby Australian Food and Fibre Limited ("AFF") acquired all of the Company's securities which AFF and Dr David Robinson did not already own.
     
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