Forum Archive Index - June 2001

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

 

David,

 

The RBC shares were 41 - 44 cents when they were listed.

 

My post of March 24, mentioned that:

 

       1 RBC share = 1.4 FFS share + assets.

 

 

And the post of March 27, had this conclusion:

 

      Buy RBC instead of FFS shares !

 

One of these posts mentions that the net asset backing / share was 82.4 cents / share.

 

I expect a write down to come but the profits from the sales will now justify that number, today, I think.

 

I was very keen that many investors would buy RBC at the opening levels of 41 - 44 cents. Many did.

 

They are sitting on a solid capital gain since March 26!

 

If the sale of the petrol stations does go well, one would expect another small rise / share. Another 3 - 5 cents per share?

 

RBC may want to have a look at some of their remaining assets as well, it is difficult to value these but I had already written these down, resulting in a downgrade from RBC 's valuation of 88cents to 82.4 cents - See above.

 

RBC's future finally depends on what happens to their large holdings of FFS / FSSPA shares!

 

I don't have anything to add at this stage.

 

Regards,

 

Gerry