Forum Archive Index - May 2001

["ryanrite" <ryanrite@xtra.co.nz>]

Boy have they (fru) miss lead the market looking back to 26th February news
up 40% to 6.4 million on the previous year
They say full year profit EXPECTED to be 17.5 million
No wonder no one wants to invest in new zealand with claims that can not be
made, are they miss leading the market because there is no problem of there
jobs being on the line?
How can people make decisions with bad information?
Maybe time to move my money to Aussie (Are they any better I wonder)?
Athol
----- Original Message -----
From: <tennyson@caverock.net.nz>
To: <sharechat@sharechat.co.nz>
Sent: Tuesday, May 08, 2001 5:57 AM
Subject: Re: [sharechat] FRU


> >
> > Looks like a classic overreaction to me,  i will be
> > buying more first thing
> > in the morning,  i read the announcement when came home from work
> > and expected to find the shareprice down by around 20,  but 50!!!
> > We all knew V had got off to a bad start, but this season
> > sounds more promising
> >
> If my memory serves me correctly, 30 June 2001 (yep next month) is
> the first chance for those people who own the rest of the Frucor
> shares (49.9%?) of the company to sell down.
>
> If the value of Frucor is between $1.95 and $2.25 with a
> propsectus forecast profit of $20.3million dollars for year 2001 it
> is clear that if the real profit is likely to be only $11m or so the
> value of Frucor shares should be rather less.  How much less?  How
> about a range of $1.05-$1.22?   That is what you get if you scale the
> share price to the reduction in profit.
>
> Even if $1.70 is the 'correct' price there is no guarantee it will
> stay at that level in the near term.   FRU at $1.70 may seem low to
> you, but to the insiders selling out at $1.70  will mean big
> profits!   There is potential for more downside in the share price if
> this happens.  Be careful. SNOOPY
>
> (disc:  Do not own Frucor.  After reading the overhyped profit
> projections in the prospectus, plus the looming cloud of the
> management sell-down, decided not to invest, quite yet!)
>
>
>
>
>
>
>
>
> ---------------------------------
> Message sent by Snoopy
> e-mail  tennyson@caverock.net.nz
> on Pegasus Mail version 2.55
> ----------------------------------
> "You can tell me I'm wrong twice,
> but that still only makes me wrong once."
>
>
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