Forum Archive Index - March 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

 

 

Current sales @ 43 cents.

 

Please refer to my " Market price of RUBICON - An opinion " of March 24:

 

I was referring to a surplus of $ 12 mill. from the total acquisition and underwriting of Forest shares based on FFS @ 34 cents.

This formed part of my rough valuation.

 

The current price of FFS is 32 cents and hence this surplus is now close to zero.

 

RBC was entitled to taking up 267 mill. FFSPA shares @ 25 cents. Allocations of shares took place this morning and thus the 260 mill. shares " sold " this morning will be part of it.

( RBC had previously taken up 75 mill. FFS and 150 mill. FFSPA shares @ 40 cents! ).  

 

I also referred to the fact that if FFS rose 1 cent, then RBC would rise by 1.4 cents.

 

I think that the market is doing a straight conversion on this basis: Current FFS price @ 32 cents = RBC @ 44 cents.

 

Obviously, if there is a lot of dumping of RBC shares then the price will gravitate towards 40 cents.

RBC shares have lately been trading in a tight range; 42 -44 cents.

 

Gerry