Forum Archive Index - May 2000

[Brett & Leeanne Phillips <bret-lil@ihug.co.nz>]

Hi everyone,

Decided to have a quick look at the sharechat postings tonight after a tough
weekend at work, to find another great article by Frank Fernandez. Thanks
again Frank for the time and research you obviously put into your postings
and Stocktake articles.

Frank's latest research on Pacific Retail Group show¹s how we all need to
look for the potential, possible connections, the people network and
fundamentals when making our investment decisions.

I would guess  most investors considered this particular stock to be a bit
of a Œdog¹ the way it has been trading lately with little investor support,
but Frank has Œlet the cat out of the bag¹ with his investigative research.
The idea of course would be to build up a nice portfolio of PRG and FRO/RMG
shares before the real action begins, if one had the foresight. The action
being RMG trading on the ASX by the end of June and Eric Watson and his
management team developing their plans for PRG in conjunction with this
happening.

With any company that Eric Watson heads it is important to Œthink outside
the square¹ if trying to analyse what his likely intentions are with regards
to the purchase. Normally we would assume he is after some sort of capital
gain yet to date this has not been evident through last years 63% stake
holding in PRG. 

As Frank pointed out he could have made a quick $10 million profit if he had
accepted offers of $1.60 per share, so you would have to assume he has
greater plans for this company. With this, a further point to consider is
that his shareholding through Logan Corp. is triple the amount he holds in
FRO/ RMG through Cullen Investments, his holding in PRG is far larger than
most other investments and I would suggest structured to further cement his
empire in Australasia.

As RMG will no doubt take over the Pacific Retail  receivables and credit
information business from Baycorp, it is also likely they will work in
conjunction with each other. RMG to identify and report on other
opportunities that arise on that side of the Tasman, especially as their
expertise spread further into the financial management arena.

Many of Mr Watson¹s confidants sit on the PRG Board and one, Stefan Preston,
has publicly commented that it is PRG's aim to be the Coles Myers of New
Zealand.  Of course we all know that Mr Watson and Co. are experts at hyping
up the potential of a share but in this instance they may just be sitting
back at the moment, waiting for the possible merger outcome between the NZSE
and ASX. This would negate the need for the PRG management to find a Œback
door¹ listing through a shell company to gain a place on the ASX as they did
with FRO.

Frank¹s research suggests that the ³right people¹ are also being Œpooled¹
together for something  exciting and PRG seems to be the likely vehicle for
a larger conglomerate, so yes the market will wait and watch with interest,
however I would suggest investors shouldn't wait too long.

Thanks again for the great work Frank, I quess there will be a few investors
thanking you for your comments over the next few months.

Happy Trading

Cheers Brett 











 


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