Forum Archive Index - March 2001

[Louise Taylor <louise.taylor@xtra.co.nz>]

Just sit tight. They will go back up.  Its just uncertainty at the
moment and that always makes for a reserved share price.  The CEO
resignation is still hanging over, and naturally, there are worries that
foot and mouth will arive here.  However,  these concerns will
blow over, and the share price will be restored to its usual, or higher
levels.  If foot and mouth does arrive here, it could be a problem,
but only short term.  Affco processes meat, so a temporary
disruption to supply is all that can be feared.  The media always
tends to dramatise things.  In a few years, it will be nothing but
a distant memory.  The share price reflects the investors claim to
all future earnings.  Even if profability is impared this year,
in the future, after the crisis is subdued as it inevitibly will be, strong
and growing profablility will be achieved.  I'd say the most likely
course of events from here will be that foot and mouth is subdued without
reaching NZ, and good meat prices (who cares about quotas, which may be
lifted anyway) along with neutralised fears will send the stock back up
to where it belongs.  Perhaps the attention may even puch it a bit
higher!!

Disc:  Bought some the other day @38c.

The 18 year old Pro.