Forum Archive Index - January 2001

["Mark Hubbard" <mhubbard@es.co.nz>]

From: Narena Olliver <narena@nzbirds.com>



> I do not think it is appropriate to get into an argument over "green"
> issues on sharechat but I need to point out that I am not a city greenie
> but a retired farmer with some real understanding of the chemicals used
> on farms and the issues associated with them. I was merely commenting
> that Nufarm would not be considered an ethical investment by anyone who
> has done their homework. ciao, Narena


A good repost Narena :)

Please note I wasn't meaning you were a city green, however, the concept of
'ethical investment' is interesting. My contention is that  the issue of
'dealing in farm' chemicals being seen as unethical, is in itself, surely, a
city green point of view, as I do not see the use of farm chemicals as being
unethical, indeed, it is such chemicals which allow us to feed our
populations.

Thus, if 'ethical investing' means shunning NUF on these grounds, then
'ethical investing', in my mind, is fundamentally flawed.

Also, ultimately the value of a share is the discounted value of its future
cashflows - thus NUF's share price will be determined by its future profits.
And that was the real purpose of my previous post. Given modern very
intensive farming, the use of farm chemicals will be increasing, as has, and
will continue to be, NUF's profits. It is for that reason I believe NUF to
be undervalued, a fact often obscured by green politics and correctness
which would imply that such companies should be making decreasing profits,
when they quite patently, and logically, are not. The reverse is the truth.

Big smiley face :)


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