Forum Archive Index - November 2000

["G Stolwyk" <stolwyk@wave.co.nz>]

 

----- Original Message -----

From: G Stolwyk

To: sharechat@sharechat.co.nz

Sent: Saturday, November 04, 2000 3:45 PM

Subject: AFFCO - buy recomendation

 

 

Dear Marilyn Munroe

 

 

I support your Buy recommendation based on these facts:

 

There is a new active CEO

 

There has been a massive reorganisation including centralisation of buildings

 

There is now Demand Led planning

 

Measures to pay fairer (to company and farmer) livestock prices are now being applied

 

AFFCO can now trade meat obtained from virtually anywhere and which will be sold anywhere in the world.

Hence, meat can be supplied all the year round

 

' INTERNATIONALISATION '  is now the keyword!!!

 

' MARKETING ' is in!!! 

IN my opinion here is a company who has left ' The NZ tearoom Syndrome ' (=mediocrity& reacting to events rather than being pro-active) well behind.

 

There are significant savings to occur yet.

 

I recommended this stock to my friends early january when it was 33 cts.We were expecting a profit of about $21M,or 10.2cts/share with a low PE of 3.2 based on that price.

 

There will be some abnormals, no doubt and it will be difficult to predict profits.

 

AFFCO could report their annual profit around 15 Nov(not long to wait!).

 

Other prominent companies are trying to emulate AFFCO in the meantime!

 

 

Please note whilst some care has been taken in the preparation of this report,circumstances can suddenly change; its accuracy and completeness cannot be guaranteed. Any claims for damages arising from this report will not be accepted and the reader is not asked to buy,hold or sell shares. Any investment is entirely at the Investor's risk. 

 

 

Gerry