Forum Archive Index - April 2000

["Osbert Sun" <osbert.sun@xtra.co.nz>]

So it's been a roller-coaster ride in the market in recent days. So there have been people celebrating over their newly gained fortune riding on the unpredictable while others weeping or cursing themselves for missed opportunities. Have all the opportunities gone? I don't think so!

 

Here are two stocks which I consider an excellent bargain buy for medium to long term holding:

 

Fletcher Forests (FFS, last trading @75c)

The sale of Fletcher Paper has brought investers' attention to this stock. It could be the next in line to spin-off from the Fletcher camp because of its cash-flow problem. As indicated in the article in the Press today, Fletcher Forests has spent the last two years shifting towards more into value-added products for exporting. I believe that a realistic offer price for potential buyer has to be somewhere around $1.50 (this is only at a slight premium to resported FFS's NTA).

 

IT Capital (ITC, last trading @47c)

There have been heavy sellings in this stock for several weeks now. It's rather ironic that the selling occurs at a time that ITC has just established itself into a solid position in the international IT development network. We have had very positive news with regard to ITC's strategic alliances with several leading venture catalysts and business development companies. Virtue Spectators and exo-net are good examples of ITC's capability in making sound investments. I would expect strong revenue growth for ITC in six months.

 

There are many others on my list as bargain buys.

 

Kind regards,

Osbert Sun

 

(Disclosure of interests: hold shares in both FFS and ITC)