I'd have to agree with most of what Ian said - the drop in FFS was a
classic case of panic selling, and CITIC's carefully orchestrated PR campaign
during the rights issue didn't help matters at all.
My prediction is that FFS still has plenty of upside in it, as investors
take another look at the stock and the future potential as a standalone
company.
(Disc. do not hold FFS)
----- Original Message -----
Sent: Friday, January 12, 2001 10:58
AM
Subject: Re: [sharechat] Fletcher forest
, why the sudden change in opinion?
I think the answer is "herd instinct" - which is
the reason so many so-called "experts" are working for salary instead of being
financially independent.Journalists are paid for startling headlines, not for
making investors wealthy.
The best thing one can do in investing is to
ignore them & do the study oneself.
FFS's underlying assets, even after completely
discounting CNIF make it by far the best value for money forestry block
around; the price made even more compelling by having processing &
marketing economy of scale & plant thrown in, with political support(
because of the company's importance to rural employment & the
economy).
Actually, Credit Suisse First Boston , the lead
underwriter, were recommending it as a buy. Too many people suspected
them of conflict of interest, without appreciating they were also in the best
position to know FFS's true value.
The technical story was also compelling, as
motivated sellers started disappearing when the price dipped below 28 cents
& a "basin" formed.
Disclosure - FFS shareholder.
See IRG research reports
