$200,000,000 Needed to Purchase $300,000,000 of Property

[charlieandkath]

This might be a bit out there but worth a shot as so far this forum has answered all my previous questions. Anyone know of any deals like this? Could we use our combined wealth of experience, knowledge and equity to pull something like this off?

The idea I'm thinking about is to buy this property together, split it up, sell it off and everyone get a nice bonus to then further their own property investing?

Any one interested? Maybe not, can we talk about it anyway? Something else might come out of it. Cheers.

 

[topcropper]

Are you going to buy Prime Ag, PAG on the ASX for $1.35 per share? That would be about $200 million, and it floated with $300 million to spend. They overpaid for land though. Corish made a killing out of it.

Only a matter of time till it gets snapped up by some overseas wealth fund I'd reckon. And it's dismal profit record shows how hard it is for corporate farms to match big family farms.


See ya's.

 

[charlieandkath]

Are you going to buy Prime Ag, PAG on the ASX for $1.35 per share? That would be about $200 million, and it floated with $300 million to spend. They overpaid for land though. Corish made a killing out of it.

Only a matter of time till it gets snapped up by some overseas wealth fund I'd reckon. And it's dismal profit record shows how hard it is for corporate farms to match big family farms.


See ya's.

G'day topcropper. I finally get to meet you. You took my bait.

You are spot on and obviously you have been thinking about PAG aswell.

I put together a takeover bid on paper last year when they were $1.00 a share. I had a $70,000,000 profit lined up.

I know they overpaid but do you now not think they would have $300,000,000 of assets three years down the track? Other positives I see are price of soft commodities having a good run and trending upwards for once, the water storages up that way are now full etc etc.

The idea is to do a Richard Gere in Pretty Woman and buy it, split it up and sell it. Do you reckon Somersoft people could put together a plan and work out some innovative techniques to do this?

 

[topcropper]

I know they overpaid but do you now not think they would have $300,000,000 of assets three years down the track? Other positives I see are price of soft commodities having a good run and trending upwards for once, the water storages up that way are now full etc etc.

I'd wait till the next flood report comes out. I'm expecting some more bad news, especially from the cotton. And most was forward sold at prices way less than it's worth now. If it gets hammered enough I'd buy in then.

The latest bad news for food prices [or good news for farmers] is drought in China. Grain is having another good run. Agriculture will do well in the years ahead. Not much else left to do to increase yields, as it's allready all been done. Those scientists who think that food production will double again in the next 50 years as it needs to, are delusional.

My crops are looking great now. [or, dad says they are, as I've been on the Gold Coast for 10 days now, and bought the good weather with me I should add]. Should be a good season.


See ya's.

 

[topcropper]

Could we use our combined wealth of experience, knowledge and equity to pull something like this off?

.

If you want a good laugh, get Dazz to take a gander at PAG's financial figures and supply us with a report. I don't reckon you'd get him on board.

I look at PAG as purely a land asset, that should continue to increase in value. And the increase in value should excellerate as the global food supply starts to fall behind demand. If PAG makes a profit, that's just a bonus, and if they make a loss, it's a buying opportunity.


See ya's.

 

[charlieandkath]

I'd wait till the next flood report comes out. I'm expecting some more bad news, especially from the cotton. And most was forward sold at prices way less than it's worth now. If it gets hammered enough I'd buy in then.

The latest bad news for food prices [or good news for farmers] is drought in China. Grain is having another good run. Agriculture will do well in the years ahead. Not much else left to do to increase yields, as it's allready all been done. Those scientists who think that food production will double again in the next 50 years as it needs to, are delusional.

My crops are looking great now. [or, dad says they are, as I've been on the Gold Coast for 10 days now, and bought the good weather with me I should add]. Should be a good season.


See ya's.

I would not really want to own a small parcel of these shares. The only reason for me to own this company is if somehow we gained control of the whole lot. Then sell off in individual farms again and give back to the family farmer. Guiness Peat I think has around 17% and I thought they were going to do a takeover last year. Would have been a brilliant move if they did.

Topcropper, that dirt up there must be capital gaining quite well wouldn't it? Say if they paid $50 million too much (I understand a percentage of their assets are water aswell), over the last 3 or 4 years wouldn't have this country gone up by 7.18% a year (and the water). This would make it worth roughly 310 million now. Or did they pay $100 mill too much? If so Corish really should be locked up. I'm pretty glad he has not recieved any bonuses yet. I heard some of the country is pretty terrible aswell yet in the prospectus they were saying it was the best of the best.

Love your thread on your farming activities. Awesome stuff. Have a good holiday - although I see you are like most farmers and still up at the crack of.

One of my theories is that every farmer in the world should cut their fertiliser out. This would say halve production of food thus sending prices up quadruple or more. Then so the starving people of the world do not starve every farmer keeps half of the half they now are producing and we send that away for free to the starving people. This only leaves a quarter of production. Farmer will not care as will now be getting paid 20 times more.

Problem is govt would step in and make us produce plus there would be farmers who get greedy and go for more.

 

[charlieandkath]

If you want a good laugh, get Dazz to take a gander at PAG's financial figures and supply us with a report. I don't reckon you'd get him on board.

I look at PAG as purely a land asset, that should continue to increase in value. And the increase in value should excellerate as the global food supply starts to fall behind demand. If PAG makes a profit, that's just a bonus, and if they make a loss, it's a buying opportunity.


See ya's.

Dazz not too impressed with me so he probably would not run the numbers but it would be interesting. All the best and if you are there Dazz could you run the numbers for topcropper please.

Agree with your last paragraph but need to buy the lot.

 

[topcropper]

Topcropper, that dirt up there must be capital gaining quite well wouldn't it? Say if they paid $50 million too much (I understand a percentage of their assets are water aswell), over the last 3 or 4 years wouldn't have this country gone up by 7.18% a year (and the water).

Land prices seem to go up in big jumps, then do nothing for a while. The water is a problem for me. I don't irrigate, so don't know how to value it. I'd rather if the place was all dryland. It'd be simpler to value.

I heard some of the country is pretty terrible as well yet in the prospectus they were saying it was the best of the best.
.

The best of the best is not for sale at almost any price. PAG only own one place on the Liverpool Plains, and it's a pretty ordinary farm. I don't know anything about the rest.


See ya's.

 

[charlieandkath]

Land prices seem to go up in big jumps, then do nothing for a while. The water is a problem for me. I don't irrigate, so don't know how to value it. I'd rather if the place was all dryland. It'd be simpler to value

Agree with you here re land prices although I thought that that double crop country up your way and further north had been increasing at a very steady and strong rate over the last five years. I had a brother in law at Croppa Creek who sold out for roughly $1000 an acre 5 years ago and now similiar stuff is $1500/$1600. Has sort of been rising $100 a year from what I have been following. They bought for $200 an acre in 1983.

 

[willair]

This might be a bit out there but worth a shot as so far this forum has answered all my previous questions. Anyone know of any deals like this? Could we use our combined wealth of experience, knowledge and equity to pull something like this off?

The idea I'm thinking about is to buy this property together, split it up, sell it off and everyone get a nice bonus to then further their own property investing?

Any one interested? Maybe not, can we talk about it anyway? Something else might come out of it. Cheers.

It would depend on the numbers of investors,you would be best to set up a company,and have the titles held by an independent trustee,and have everyone in the company understand guarantess you make are enforceable..
BTW,i also have held"PAG",from the start and like most sleepers it's a time game,there was talk about some overseas funds buying in but i may be only talk ..imho..

 

[cu@thetop]

The idea is to do a Richard Gere in Pretty Woman and buy it, split it up and sell it.

He did that to Julia Roberts? Shame I missed that bit- would have improved the movie.

 

[Graingrower]

Those scientists who think that food production will double again in the next 50 years as it needs to, are delusional.

There are a lot of areas like yours that have it worked out and are running close to full potential. But there are also a lot of areas around the world taht aren't. In my area there are people running sheep and cattle (maybe 5-10 des/ha) on land that has 4-5 t/ha average wheat yield potential. In Africa there is a hell of a lot of land that is way below it's potential. I saw a maize crop that was nearly dying and might yield 2 t/ha tops and over the road a maize crop that was going to yield maybe 7 t/ha. The fundamental difference was ancient farming methods vs modern farming methods. In my opinion there is huge scope to expand food production around the world.

My crops are looking great now. [or, dad says they are, as I've been on the Gold Coast for 10 days now, and bought the good weather with me I should add]. Should be a good season.
See ya's.

Do you ever have bad seasons? lol.

 

[topcropper]

I'd wait till the next flood report comes out. I'm expecting some more bad news, especially from the cotton. And most was forward sold at prices way less than it's worth now. If it gets hammered enough I'd buy in then.
.

Well, that was the plan.

The flood anouncement came out, and it was good for PAG. The shares weren't hammered, they have taken off. The share price is now up to $1.52.

There might be some really massive returns come in from the dryland cotton. Being dryland and a bigger risk, it's unlikely that much would have been forward sold at prices way lower than todays amazing price.


See ya's.

 

[charlieandkath]

Well, that was the plan.

The flood anouncement came out, and it was good for PAG. The shares weren't hammered, they have taken off. The share price is now up to $1.52.

There might be some really massive returns come in from the dryland cotton. Being dryland and a bigger risk, it's unlikely that much would have been forward sold at prices way lower than todays amazing price.


See ya's.

Topcropper, sometimes I find with announcements that they plain lie to investors and when the actual figures come in the price gets hammered. Could happen yet I reckon although long term I think soft commodities are going to be pretty solid for a while.