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Hi Mark,
CAH is a strong buy with many Brokers up to
$2.15 . With its astute buying recently, and partnership buying, alot of
synergy has evolved. This will mean increased margins in its area of business,
especially as some monopoly situations are starting to emerge, especially
in the fibroboard business area, and it is no secret that they have been trying
to up the market price in other areas, pulp & paper etc .With
their size and stronge alliances, it will not be long until they will be-able to
have some influence on world marketprices, if not already. Analysts also think
that wood related commodity prices are on an
upturn.
I think (not sure ) that I read somewhere that CAH
and IP or one of its subsidary companies in partnership, have
already lodged an initial bid in on the CNI forest ,they have
said that they want to build another processing plant( seem to be one short),so
this would fit nicely within their plans as to where to locate it, one would
assume.
Hoop
Disc Own CAH and bought
more ( too hell with Buffet Theorys) :))
----- Original Message -----
Sent: Thursday, May 17, 2001 9:45
PM
Subject: Re: [sharechat] RBC
Sell????
Chris, I'm not convinced that we will see CAH
proceed with an offer for CNI. Suspect that they have sufficient forestry
assets under lock and key . So why ask the Commerce Commission if they can
proceed ? Ask FBU why they keep applying for permission to acquire STU. Keeps
their options open I suspect. CAH have probably chewed their way through a
fair chunk of the COPEC funds by now , meaning more bank debt and / a cash
issue and / an overseas partner to assist with acquiring the CNI assets.
CAH are probably more interested in further downstream operations.
Most analysts continue to dislike CAH on
fundamentals, however using looking at a chart over the last 18 months (
which is a reasonably long time period) and using a 30 week moving average (
which is a reasonably conservative period) , the stock remains in an uptrend,
to the analysts chagrin. technically the stock remains a 'bu
Certainly if the CNI assets are cheap
enough, they may well have a crack at them.
Hope my comments provide
some food for thought . Mark.
----- Original Message -----
Sent: Thursday, May 17, 2001 11:19
AM
Subject: Re: [sharechat] RBC
Sell????
Also interesting to note a couple of things from the press.
1. MAF and China are forming closer links due to the proposed
massive increase in log exports to China and,
2. CAH are looking at building another wood mill (900,000 m3) but have
not yet made a final decision on its location. I would presume that if
they got the CNIFP assets it might be closer to Taupo. Someone is
still interested in trees!!!
Chris
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