Forum Archive Index - September 2002

["Michael Phillips" <michael.p@paradise.net.nz>]

From: "Ben Dutton"

> "Shares in recently-listed packaging company Vertex Group plunged
> by almost a quarter and looked ready to continue falling after it
> issued a profit warning today."

Contrarians, on your marks...get set...

<quoting RIL>
> Everything relies on grossly inflated forecasts off an
> historical PE of nearly 50 on historical core
> earnings.

These inflated forecasts have proved to be too high.  Based on todays
price and earning indications what will the PE come in at now?  Probably
still a little high, but coming down to more realistic levels nicely to
my mind.

By the sounds of it a lot of the financials at the moment are a legacy
from management decisions made before they were spun off from the
parent.  Once these finally work their way out of the system, it will be
interesting to see what becomes of the "ugly duckling"...

Regards
Michael
===

disc: no holdings to date




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