Forum Archive Index - March 2002

[hugh webber <hugh.webber@clear.net.nz>]

hi Hope,
In the spirit of someone from Sharechat trying to answer newbies questions
I'll make a few brief comments.
Obviously FFS have been taking a bath for some time and have been writing off
every thing they can think of to get all the bad news out of the way. And 
underneath
all the huge writedowns they are making an operating profit. Hence they may be 
a 
"recovery stock" over the next year or two particularly if the world economy 
continues
a recovery lead by the US.
However I wouldn't invest in them in the long run as they are a commodity stock.
i.e. in their sort of forest products there are no or low barriers to entry and 
their 
products are sold on price alone - and there is heaps of competition from 
competing 
products by way of bricks, stone, concrete, cladding, aluminium, steel and 
probably
some others I haven't thought of - plus the wall of wood coming up from NZ 
itself.

cheers,
Hugh
----------
From: Hope Dixon <dixon@paradise.net.nz>
To: sharechat@sharechat.co.nz
Subject: [sharechat] FFS
Date: Monday, 4 March 2002 13:07

Being just new to the trading of shares, what are your thoughts on Fletcher 
Forest ordinary shares?
It indicated in the report that FFS suffered a big loss of 302m, not a shock to 
alot of people I
guess. Reading further into the report it appears to me that all is not lost. 
What are your
thoughts on this stock, do you think things will be rosier in the future, and 
maybe worth an
investment for the longer term?  Look forward to your replies.

New Investor


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