Rural service company PGG Wrightson is finding increasing support among investors as it gears up to launch a company that will buy farms in Uruguay.
The difficulty of generating superior returns from expensive New Zealand farmland is what inspired PGW's Craig Norgate to launch acompany part-owned by PGW - called NZ Farming Systems Uruguay - to buy farms in Uruguay, where land is cheap.
The idea is to improve their returns through New Zealand's superior farming methods, resulting in rising land values as well. Initially, this idea left investors in PGW confused and unimpressed but, increasingly, they seem to have bought into the idea and support for PGW shares has steadily increased.
Norgate may be hailed a genius in a few years if it works or it will go down as his biggest folly if problems emerge that he didn't foresee.
Metcash
Grocery and liquor wholesaler Metcash is emerging as a third force in Australian retail with a move into fresh food.
This follows its recent takeover of wholesaler Foodland Associated, which has had its fresh food operation integrated into Metcash's distribution business, IGA.
In 2006-7, the number of IGA-branded stores increased to 1256 from 1209. Metcash also operates Campbells Cash and Carry wholesale stores, as well as the liquor wholesaler chain Australian Liquor.
Having put a lengthy and complicated restructuring and acquisition deal behind it, MTS is now a force to be reckoned with in the Australian retailing scene.
EPS growth is expected to remain strong over the next couple of years as value from its new assets is fully extracted.
While its major competitor, Woolworths, is an expensive share that reflects its dominance, number three Metcash is much cheaper in its market rating but still has excellent prospects.
