Forum Archive Index - March 2000

["Mike Hudson" <mikehudson@clear.net.nz>]

Nick wrote
            "Looks a very bad time to exit building to me. They are
incredibly cheap, i say buy, buy, buy.
      Arnt you supposed to buy low sell high? not the other way round
             Nick"

I agree. When they got to $2.08 a few days ago I bought another heap of
shares only to see them collapse to $1.90 yesterday. They seem to have
recovered some of the lost ground this morning. FLB have good earnings and
cash flows; the businesses making up the group are in the main  well managed
(especially  PlaceMakers ) and the company should thrive once it gets out
from the dead hand of Fletcher Challenge Corporate.

The current price weakness is caused by selling by indexed funds out of
Australia, which in itself raises questions about the merits or otherwise of
investing in these funds, and could continue for a week or so yet.

For those that are interested CS First Boston have just produced a
comprehensive 21 page analysis of FLB entitled "Bridging the value gap" and
I am sure if you popped along to your local office or gave them a call they
would give you a copy. They have a valuation of $3.00 on the shares as do
ABN AMRO.

Incidentally whilst talking about CSFB they have vastly improved their web
site which is worth a look on www.csfb.co.nz <http://www.csfb.co.nz>   This
was previously client access only but is now open to everybody

Cheers
Mike H


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