Podcast – Abano, Warehouse | PGG Wrightson

5 July 2019

Global markets ​were ​quiet overnight given the US market independence day holiday. 

​The latest stock market movers podcast ​is out: Abano Healthcare, Warehouse Tour and Chris Heaslip hits the sell button on Pushpay, to listen CLICK HERE.

Stock in Focus: PGG Wrightson (PGW:NZX)

​​​​​​​​​​​​​​​​​​​​​​PGG Wrightson​ shares were higher yesterday after issuing a notice of meeting ​on 23 July ​where shareholders will be asked to back a court-approved scheme of arrangement to allow a 31 cent per share capital distribution.

Assuming the scheme is approved and implemented it is the intention of the Board to shortly thereafter effect a consolidation of PGW’s shares on a 1 for 10 basis, whereby every 10 shares will be consolidated into one shar​e​.

​As we have discussed before, we believe the business fundamentals are still sound, and the business is trading at single digit price to earnings multiple. However, PGW ​will​ now a smaller, more concentrated business which is more heavily impacted by any adverse NZ specific events. 

​We currently have a BUY rating on PGW.
Members should look out for a full update on PGW to be released in our weekly report.

Australia & New Zealand Market Movers

​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​The Australian share market ​added to its rally yesterday (ASX 200 index +0.​49​%) ​as the ​ASX experienced it  best finish since ​2007's ​record high​. ​Retirement village company ​Aveo Group shares rose after confirming reports it was in exclusive talks with Canadian alternative asset manager Brookfield over a potential takeover.

The New Zealand market ​stayed in positive territory on Thursday (NZX 50 index +0.1​3​%)​.  Pushpay was the most traded stock once ​its trading​ halt was lifted, with 16.7 million shares changing hand​ as former chief executive Chris Heaslip sold 12.2 million shares ​a​t a clearing price of $3.70​ a share. Fonterra Shareholders' Fund units posted the biggest decline on the NZX50,​ as investors continue to dump its share after losing confidence in the company's ability to deliver value to shareholders.

3 Things Markets Will be Watching this Week

  1. ​​​​​​​Trade related news flow is likely to remain in the headlines.​
  2. The Reserve Bank of Australia makes an interest rate decision on Tuesday.
  3. ​F​riday​'​s US nonfarm payrolls​ (employment figures) will be​ the key even​t in terms of economic data​.

Have a Great Day,


Global markets ​were ​quiet overnight given the US market independence day holiday. 

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