Forum Archive Index - January 2001

["nick" <acummin@es.co.nz>]

        I too have been a longterm holder of nufarm, if it wasnt for the

fact that it already takes up a large slice of my portfolio i would be buying

some more.

          However i think it is too simplistic just to blame the price stagnation

 on the move to australia.  What is more important is the area of buisness theyare

in.   The whole issue of genetically altered food has several effects,  many people

are against and are unlikely to invest in a company like nufarm. Secondly

genetic technology means that the sector is going through a period of change.

      It is no longer enough to make money selling  fertilizer, all the new technology etc

does put a certain question mark over companies such as nufarm. Keeping up

with rapid change etc costs money.

                I have full confidence in nufarm, however i believe it is the above

 factors which are keeping the shareprice down. Nufarm just isnt sexy enough

to be trading on a high p.e.  

         For investors though the outlook is bright,  eps seems to increase yearly

as does the dividend, providing they stay on the ball t is only a matter of time before

the company is back to 6.00 a share.  

 

             nick