Forum Archive Index - August 2000

["Mike Hudson" <mikehudson@clear.net.nz>]

Mike wrote

"I see FRU are on the way down again. Been quite a roller coaster recently.I
would have thought that with the NZ dollar doing what it is that FRUgetting
established in the UK and Ireland would have been reaping the benefits. Whats
causing the roller coaster effect ?"

 

The roller coaster effected due to the fact that this is a speculative share.

 

 If I remember correctly from reading the investment statement the profit projections were based around huge growth in the market for 'V" in Europe.  The shares were listed at $1.55  based on an ambitious marketing plan. Since then the hype has pushed the shares up by over 50%.  The players are mostly small punters, they have seen the reports of increasing sales of "V" in the UK but have forgotten that this was already factored in to the issue price. The fluctuations in the NZ dollar are irrelevant in this one.

 

Has anyone run the numbers? What revenue and earnings does this company have to do to justify the current price?

 

This could be the best thing since sliced bread but you would have to be a true believer.

 

Cheers

Mike H