Forum Archive Index - November 2001

["Michael Huang \(DSL AK\)" <MichaelHu@datacom.co.nz>]

Hi,

I was a holder of FAP but I have sold them recently.  The reason being:
1. They $US 16-18 ADS valuea the Health Care Share around $NZ 10.  Therefore
to justify the current price of around $14.  The appliance share will need
to be valued at high $NZ 10.  This will not be the case as the applicance
biz is much less valuable.
2.  Therefore given their floating price, this current share price is way
overvalued.  FAP is the one making the float price, they should have a good
idea on how much their share worth and I am not going to pay 20%+ more than
their valuation.

Having said that.  I do believe FAP health division has a lot to offer and
maybe their floating price is too low.  One might argue why the market is
paying more then?  IMHO I believe the people are betting for their potential
growth.  One stratefy to get into FAP may be wait until the separation is
over, and look at the FAP Health division price, and make a decision then.

Cheers,



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