Forum Archive Index - April 2000

["Huang, Julia [Pulp & Paper Kinleith]" <Julia.Huang@chh.co.nz>]

Dear Ray,

I think this guy's argument is right. if the share price is under $1, it is
worth to buy from a long term point of view. However, it depends on how long
does it take to sell FFS, who knows? 

If you really want to buy, probably it is worth waiting until the market
cools down.  How do you think? 

Julia 



> -----Original Message-----
> From: Derek Watt [SMTP:dkw@paradise.net.nz]
> Sent: Wednesday, 5 April 2000 18:47
> To:   sharechat@sharechat.co.nz
> Subject:      [sharechat] FFS 
> 
> 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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