Forum Archive Index - October 2000

["SWLEE" <SWLEE@xtra.co.nz>]

CAH has been rerated to "strong buy" by a number broking institution this
month.( http://biz.yahoo.com/z/a/c/cah.nz.html)
Also the company in their annual profit announcement recently that they
intend to buy back 30 million shares for the staff pension scheme. This will
help underpin the share price.
In addition, there is high potential especially under the current
environment for IP to move in to top up their holding.

(Disc: Holder of CAH)

----- Original Message -----
From: Ben Dutton <bendutton@sharechat.co.nz>
To: <sharechat@sharechat.co.nz>
Sent: Tuesday, October 31, 2000 10:44 AM
Subject: [sharechat] CAH - a good buy??


> I'd like to hear from people that follow CAH whether they regard the
company
> as a good buy at its current levels (On a cursory examination it would
seem
> so).
>
> Their parent company, International Paper, was up over 8% in the U.S.
> overnight, following a re-rating by DB Alex Brown analyst, Mark Wilde,
from
> "buy" to "strong buy".
>
> Here's what a Reuters report said:
>
> **
> "Mark Wilde, a DB Alex Brown analyst, raised his ratings on several
> forest-products stocks. Analysts have lowered paper stocks' 2001 earnings
> estimates in recent weeks, and those revisions have already been worked
into
> share prices, Wilde said.
>
> Bowater was a favoured mid-cap paper stock as a "relatively clean 'paper
> play,'" Wilde said in a note to clients.
>
> The rating on International Paper, the world's No. 1 paper and wood
products
> company, was raised to "strong buy" from "buy" by Wilde.
>
> "It's hard not to envision a decent rebound over the next several months,"
> because although the sector faces three or four difficult quarters with
the
> risk of meaningful price pressure, paper stocks typically begin to
> outperform three to 12 months before a cyclical bottom in commodity
prices,
> Wilde said."
>
> **
>
> Does this line of thinking also apply to CAH?  They are sitting on a heap
of
> cash, but there have been log pricing issues and Franklin Resources is
> shedding its stake in the company.
>
> CAH is up 4 cents as I write this, following on from IP's gains.
>
> Look forward to hearing your comments.
>
> Best Regards
>
> Benjamin Dutton
> (Disc. do not own CAH)
>
>
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