Forum Archive Index - December 2000

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

 

 

Hugh,

 

Please refer to my report of  Nov. 27 and the supporting references made in that analysis. Quoted prices are in $A.

Also, before proceeding, refer to the disclaimer at the end of this report.

 

 1.Price history of LACO.

A placement of shares and options was made in Dec 1999. A cash issue to shareholders was made in Jan 2000.

A new set of options was also issued. All options were to expire on 30/12/04. 

 

Prior to the listing of the second set, I completed a range of valuations. Based on the little information available on LANG, but respecting their excellent management, I decided that @ $ 2/option, the risk was very low.

And I was amazed to see the second listing of options selling @ $1.20 while the first set was still selling @ $ 1.40! (The head share LAC was selling @ $6.85).

Finally, both sets were combined and the code LACO was adopted.

 

The market was then preoccupied with computer stocks and only a few took notice of high quality infrastructure stocks.

However, the LACO price finally reached $ 2.35 while LAC had risen to $ 9.90: refer to my entry of Nov 4.

 

At that time investors were getting out of the the e-stocks and I was sure that they wanted to hear about

an infrastructure stock with 'teeth' and entrepreneurial ability, called LANG; their website:< www.lang.com.au >

 

I learned later that on Nov 24 a major Australian broker did put a buy on LAC ($ 10.70) and again a few days later, when the stock was $11.36.

 

Yesterday, LAC rose to $11.95 and LACO rose to $ 4.10 at one stage, but fell back to $4.00.

 

LACO's price has risen by 70% since Nov. 4!!

 

 Many thanks to Management and readers of this sharechat forum!!!

 

2.Prospects.

Institutional and superannuation funds will be interested in this stock as it  promises good returns at less risk.

As the price rises, supply tends to 'dry up'. My entry of Nov. 6 mentions that there are not many shares and options on issue.

 

Please refer to my entry of Nov. 27, item 3, where possible prices for shares and options are predicted!

 

Obviously, LACO is a medium-and long term BUY! 

 

The long term holder will,I think, benefit the most!!

---

Disclaimer.

Contents of this email are my opinion. This could change. Accuracy or completeness cannot be guaranteed. Any claims for damages arising from reading of, or communicating the contents of this email to others, will not be accepted. No one is asked to buy,hold or sell shares in any company, trust or any other instrument. To do so will be at the reader's own risk.

 

Gerry