Forum Archive Index - October 2002

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi Greg,
 
> 
>I forgot to mention that i hold FFS (purchased recently
> at 22c).
>
>

That is certainly a cheap entry price.  Or is it?   I see FFS is down 
another cent to 21c this morning.  It is always difficult to value a 
debt ridden company which doesn't pay a dividend.   Hence my own 
preference for CAH

>
> 
>My main reason for bringing up this matter is that GPG has stated
>that they want to rationalize the forestry industry. They will want
>to do so in such a way to make a good profit for themselves but will
>not want to end up with an asset which they find difficult to
>dispose of. Look at Brierley with Thistle.
>
>

A lot of the Brierley wheeling and dealing in general involved 
selling a strategic parcel of shares at a premium price.   The 
takeover code effectively eliminates such shenannigans.  
Interestingly it was the UK takeover code, which for a long time has 
been kinder to small shareholders than NZs equivalent, which forced 
Brierley to take the whole of Thistle.   Now the NZ market has 
'caught up' Brierley type buying and selling of stakes for profit may 
not be so easy.

>
> 
>One other point is that CITIC have made no secret of the fact that
>they want in with our forests and are prepared to pay good money for
>a stake. We have CNIP for sale at a cheap price yet they no not
>appear to be doing anything about it.
>
>

I think CITIC want the logs for processing in China.  They may be 
prepared to pay a good price for that, but not, I think, for the logs 
themselves.

SNOOPY


---------------------------------
Message sent by Snoopy 
e-mail  tennyson@caverock.net.nz
on Pegasus Mail version 2.55
----------------------------------
"Sometimes to see the wood from the trees, 
you have to cut down all the trees."



----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/