Tuesday, July 20, 2010

Long Term View: PGG Wrightson Ltd




In this series of posts I am going to be looking at stocks listed on the NZX in relation to their returns to shareholders over the life of their listing -what shareholders would now see in their back pockets if they had invested in the company IPO. The calculation of returns includes dividends and tax credits.

PGG Wrightson Ltd [PGW.NZ] has been a poorly performing stock since its January 1982 listing . We will make our comparison at an adjusted share price of 50c*. $1.13c in net dividends** a 5:4 share spilt in 2010, a 9:8 split in 1994 and a 9:8 split in 1992 and 30% more in tax credits (see chart above)gives PGW a 240% return (see chart below for the share price percentage gain against the average of all NZX indexes - does not include dividends, tax credits and the share split in its calculation) and over the nearly 28 year listing*** of PGW an approximate annual net return of 15%.

This is approximately a 3% less return when compared to the average of all NZX indexes.


Earliest available data for share price from 1991*
Dividend records go back to 1994**
Our comparison is for 16 years. All relevant available data to show the return for PGW dates from and includes 1994
***






Long Term View Series

Auckland International Airport
Air New Zealand
AMP Ltd
Briscoe Group Ltd
Cavalier Corporation Ltd
Contact Energy Ltd
Delegats Group Ltd
EBOS Group Ltd
Fletcher Building Ltd
Fisher & Paykel Appliances
Fisher & Paykel Healthcare
Freightways Ltd
Goodman Fielder Ltd
Hallenstein Glasson Holdings Ltd
Hellaby Holdings Ltd
Kirkcaldie & Stains Ltd
Kiwi Income Property Trust Ltd
Mainfreight Ltd
Michael Hill International Ltd
Metlifecare Ltd
Methven Ltd
New Zealand Refining Ltd
New Zealand Stock Exchange Ltd
Nuplex Industries Ltd
Port Of Tauranga Ltd
Postie Plus Group Ltd
Pumpkin Patch Ltd
Restaurant Brands Ltd
Ryman Healthcare Ltd
Sanford Ltd
Sky City Entertainment Group Ltd
Sky Network Television Ltd
Steel & Tube Ltd
Telecom NZ Ltd
Telstra Corp Ltd
Tourism Holdings Ltd
The Warehouse Group Ltd


PPG Wrightson @ Share Investor

Stocks on my Watchlist: NZ Farming Systems Uruguay Ltd

Discuss PGW @ Share Investor Forum
Download PGW Company Reports


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The Intelligent Investor: The Definitive Book on Value Investing. A    Book of Practical Counsel (Revised Edition)
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
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