Forum Archive Index - December 2000

[Gerry Tyler-Smith <g.tylersmith@ext.canterbury.ac.nz>]

Hi John

So sorry to have been rabbiting on about FFSRA ... it really is a case of
'whistling in the dark', trying to convince myself that the cautious way,
is the right way.  Scott Adams (author of Dilbert) claims that people
generally make a decision very quickly, based on prejudice, usually, and
then work like crazy to justify that decision.

I do agree with you about the basic value of FFS being there, but ooohhh
the risks until that value can be realized... Reading the RISKS section of
the FFSRA investment statement really did send me into a state of investor
anxiety, even tho many of those risks were as remote as volcanic eruption,
and Treaty of Waitangi claims.

Cheers

Gerry




     I am really sick of hearing Air NZ quoted as a  pointer to why the FFS
shares will drop post rights. The situations are  completely different.  
In most cases, shares rise following a rights issue because  selling
pressure is applied as holders can't afford to take up their rights,  this
means that the rights or shares are dumped. This is obviously exacerbated
when the price to pay for the rights is high relative to the value of the
shares  when the rights are announced (as was the case with FFS).   A
holder that can afford to, should take up the rights to  avoid dilution of
their existing investment. Once the speculators and bandwagon  followers
have been shaken out of the trees then the shares should recover to a
theoretical value in the 50c range. This makes the shares look quite
attractive  at the moment....            




----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
http://www.netbroker.co.nz/        Trade on Credit, Low Brokerage. Join now.
----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/forum.shtml.