Forum Archive Index - October 2002

[Greg <g&jelliott@xtra.co.nz>]

Its probably a woody question, with an answer that is glaringly obvious if
you stand on a treetop, but why do we send so much raw wood overseas? Why
don't we process more wood and market the value-added product. Most days I
drive past a huge pile of raw trees, waiting to be loaded onto ship. And the
tree-put (throughput) seems high.

Another greg

> From: "tennyson@caverock.net.nz" <tennyson@caverock.net.nz>
> Reply-To: sharechat@sharechat.co.nz
> Date: Mon, 7 Oct 2002 13:32:14 +0000
> To: sharechat@sharechat.co.nz
> Subject: Re: [sharechat] GPG FFS RUB CAH
> 
> 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
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> "Sometimes to see the wood from the trees,
> you have to cut down all the trees."
> 
> 
> 
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