Forum Archive Index - April 2000

[Derek Watt <dkw@paradise.net.nz>]

I'm surprised that no-ones mentioned FFS.
There's an artical on the front page of
sharechat from the Herald.

It seems likely that it will be sold, but
if not then the company will be re-structured
to the benefit the shareholders.

At 70c this _must_ be a bargain.

I know that they have been trading around 55c,
but given the very good price FCL got for FLP
so what?

According to the artical the assets were valued
at $2.3 b last year and there debt is $700 m

So (Am I missing something here?):

Assetts $2.3 b
debt $0.7 b
Assets minus debt = $1.6 b
Number of shares = 0.637 b

assets/share =  $2.50
current price 71c

If full realisation of assets is achieved
% increase = 100 * 250/71 = 350%

Given a more likely share price of $1.50
it will still be about a 100% return on the
current price of 70 c if the company is sold.

Given the recent and probably continuing
weakness in the IT sector as a whole, surely
FFS makes alot of sense. Even if it means
selling some IT shares at a loss.

Derek W

(owns ffs shares)






-----------------------------------
Derek Watt
http://members.tripod.com/DKWatt/
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