Forum Archive Index - May 2000

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

Rob said:
<---cut---->
>What does a company have to do for there share price to increase?

This is such a good question. It is the $64000 question of course.

I think there are several answers. 

1)The best (sad but true) is to be bought out by a
foreign company re: FLP shades of FFS, possibly FFE, 
CAH, CEN infact maybe even TWR, TEL (maybe other people 
have got more to add.)

2) Jump on a bandwagon, the classic of late has been
e-commerce, then more lately b2b e-commerce etc.
Of course you have to know when to jump on and you
have to do it in a convincing fashion. 
This may sound cynical but I'm not trying to be -
Jumping on a bandwagon can still result in a profitable
business.

3) Do something really clever eg FRO
(although shades of jumping on a Baycorp bandwagon here),
GEN, WDT. But this approach doesn't always work (eg GPG).

4) Be a market leader eg TEL, BCH, WHS. But this only works
for the goodtimes.

5) Be a company trading at a few cents then be taken
over or have a radical change in direction. eg WN, ITC, SMR etc.
(hang in there AQL shareholders!)

6) Have a owner or CEO with an incredible reputation so as to
make a share move on his own just by being involved. (eg FRO,
ADV, SMR, AQL). Doesn't seem to work for Ron B. & WRI, OTR, GPG.

7) Try and be as many of the above at the same time as you can.
(A shell company with a super CEO jumping on a bandwagon, 
doing something really clever with the hope of being taken 
over by a foreign company.) If you know of any please post.

Maybe others have some more ideas.

Derek

P.S.
CAH - I rate as a buy below $1.80 short term, below $2.00 longer term.
----

>Can anyone tell me why when CAH have increased profits, and with 
>world pulp and paper prices looking positive why their share price 
>has dropped this morning ?
>Am I missing something?
 
>What does a company have to do for there share price to increase?

>Regards 
 
>Rob 

---
P.P.S.

Maybe the market had already anticipated the profits.




-----------------------------------
Derek Watt 
http://www.blackrobin.com
-----------------------------------




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