Forum Archive Index - December 2000
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Re: [sharechat] FFS rights issue
CSFB (after Merrill's unsucessful foray) was mandated to advise FFS re separation and came up with the rights issue.
Now that they are looking down the barrel of having to take up a great portion of the rights, IMO the IB guys would be trying their darndest to flog the whole thing (pay day for CSFB IB and brokers then!!)
Also, interesting reading in the rights document - especially some of the more obscure points.
>From: "Grant Keymer"
>Reply-To: sharechat@sharechat.co.nz
>To:
>Subject: Re: [sharechat] FFS rights issue
>Date: Tue, 5 Dec 2000 10:03:55 +1300
>
>Graham,
>
>I 100% agree with you. Long-term vision is where it's at with FFS.
>Have you noticed the gradual move upwards in price of FFS yesterday and today:
>
>No more 24c trades since early yesterday, 25c became more the pattern as the day wore on
>Now this morning we have the first 26c trades seen for over a week
>No doubt there will be some oscillation between 25 and 26c, but it is an interesting trend
>
>I think that everyone who wanted to bail out has already done so by now.
>With FFS trading at 26c, I think there is every possibility that the new preference shares will trade at 27c or maybe a little more, thereby making the exercise of your rights a good investment.
>
>I plan to fully take up my rights at a cost of approx. $11,700, so I'm prepared to put my money where my mouth is.
>
>The reappearance of some 26c trades bodes well for FFS in the short term.
>And as you say, once the selling pressure caused by all the factors you mentioned has eased further, there is scope for the new preference shares especially, to gradually start moving up. Because a lot of people have had to dig deep to exercise their rights, I expect there will be regular bouts of profit taking, thus keeping the stock low for some months.
>
>But I plan to stay in for at least 1 or 2 years, waiting for the commodity cycle in forestry products to turn a little more.
>
>Talking about cycles, have you noticed how the Kiwi $ has risen so quickly over the last few days?
>It just goes to show how quickly things can turn around, and it bodes well for the NZSE over the next few months.
>I for one have topped up my holdings in TEL, CAH, CEN and AIA recently.
>
>I wish I'd put more money in non-tech blue-chip stocks at the beginning of the year instead of ADV, ITC, SPE and NGL... However, while tech stocks may never regain the heady levels of early 2000, in the 2 or 3 year time-frame, there is scope for profitable businesses (which most of these are), to regain considerable value. I certainly plan to hang in there.
>
>But I digress, that's another subject.
>
>Cheers
>
>Grant Keymer
>____________
>
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