Forum Archive Index - October 2001

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

Kevin,

 

The new formula given a few days ago, will give you some idea perhaps as what to chose assuming that you want to invest in FFS or RBC.

 

Greg and greg are good sources, to refer to, I think.

 

As to whether any investment in either FFS or RBC is advisable, I don't know.

 

I did mention that there could be some adjustment to the " 48 cents " in that formula. Much depends on the writing off or capitalisation of research costs and the progress of their Research unit.

 

We need more news from RBC, who have been rather quiet, I thought! Till then, I consider the " 48 cents " as the maximum. That is not to say that it is not justified based on known facts.

 

It was thought that Forestry may pick up in the last quarter but there are few signs of that happening.

 

 Siberian or Russian logs don't help. The immediate outlook is not that promising; hence the fall in share price from 32 to 25 cents.  

 

I suppose, that most of us would think that the Receiver is stretching things, hoping to get a reasonable price just prior to a possible pickup in demand.

 

There are conflicting reports as to the competition re the Receiver's assets but nothing concrete.

 

Now, with FFS @ 25 cents, one would hope that some company would make a bid for FFS; this has not happened so far.

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As you know, the investor is constantly confronted with competing demands and opportunity costs, ie a typical stock may rise 30% while FFS remains @ 25 cents in that period.

 

This is particularly valid today, although many of the cherries have already been picked!

 

I bought some CLI stock @ $ 2.52 last week, now $ 2.83.

I also did some buying of stock in the UK with good results so far. ( There are still some losses though! ). 

 

I am not suggesting that you should follow a similar course but I am using these as examples. Much depends on your resources!

 

Then again, there may be a sudden movement either at the FFS end or at the CNIF end, or both! Who knows !

 

Thanks for your post,

 

Gerry