Forum Archive Index - January 2001

["Grant Keymer" <grant@jenlogix.co.nz>]

John,

 

My sincere sympathies that you fell prey to the doomsayers concerning FFS...

 

I almost succumbed myself, because a certain person on the other channel (whose opinion I respect a lot) kept slagging FFS and decided not to take up the rights issue.

 

For a while I thought it might have been yet another bad investment decision to cap off an awful year, but I was kind of numb from the fallout of ADV, ITC, NGL etc, so just stuck to my belief in the fundamentals (PE and future earnings prospects for FFS), and thought what the hell, it's only money... give it a go, I reckon it might be a flyer in spite of what everybody else is saying.

 

And for once during 2000 I got it right.

That's no consolation to you, however I would like to offer the following suggestion concerning your SPE shares:

 

I also took up the rights issue and have been likewise disappointed.

But I would say wait a little longer.  Next result is due in mid-March, and the major asset of SPE, namely WEL Technology is a good little earner.  Bear in mind that it's earnings are almost entirely in US$, which are going to look pretty healthy when converted back to Kiwi$.

 

SPE has been reasonably stable in the midst of all the turmoil concerning other tech stocks.

After bottoming at 2.9c briefly one day in late November, it has traded in the 3-4c range, rising 0.3c today.

If you have more $ riding on it than you are comfortable with, you might want to lighten on one of the peaks towards 4c, but otherwise I would suggest hang on for the ride.  I firmly believe there's only upside from here.

 

Cheers

 

Grant Keymer
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