Forum Archive Index - January 2000

[Phil Eriksen <phil@acepay.co.nz>]

nick wrote:
> 
>     This is what worries me too. With all the rapid changes bought
> about by this genetic modification etc where does that leave fernz?
>     The shareprice may be low partly because the buisness is seen as\
> environmentally dodgy, but i think there must be legitimate worries
> over the future of that sector, monsanto will be alright but will fernz?
>   nick
> 

I think the share price decline is due to (a) the move to australia (b)
the tax disadvantages associated with this move (for NZ investors) (c)
the company is "homeless" to some extent, with New Zealander's having
dropped the share, and Australian's not really seeing it on their radar
screen yet (d) institutional selling (index funds etc) because of the
move abroad.  (e) possibly (to a small extent) the Kerry
Hoggard/Fletcher thing recently.

I think the -real- reason, however, is basically that Fernz is boring,
is in a boring industry, has reported no exciting news for a while, and
has yet to dump its assets to acquire an e-commerce company.  Points a -
e  are reasons to sell - but there has been no news or compelling
reasons to buy.  Result - weak price.

Disclosure : Have Fernz shares, and hoping it keeps on falling :)

Cheers,
Phil

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