Forum Archive Index - April 2001

["greg" <gregoire@paradise.net.nz>]

Peter, SWLEE states

 

"IMHO, the current share price of FFS/FFPS does not stack up at all. As stated above,  RBC is paying an average price of $0.32 for the combined 492M FFS/FFPS shares.  Strangely enough, this price "coincided" with the share price of FFS/PPFS the day after the right issue, as opposed to $0.25 prior to the right issue. This tend to support the argument that  FFS/FFPS share price was "artificially" jacked up so that RBC is seen to be paying the right price for their holdings. It would be interesting to see where FFS/FFPS share price would head, post transaction on event D above."

 

However, if you go back to Feb/March 2000 you will find that FFS was trading at 45c.  I think this was the markets view of FFS at the bottom of the log commodity cycle together with the CITIC wrangle.  Since then we have of course had the rights issue which gives a corresponding share price of (45+50)/3 = 31.67c.

 

Now you can either agree with SWLEE that something sinister is going on and we should all sell FFS to buy RBC or not as you choose.  I don't see anything going on here besides market forces.

 

Regards,

greg