Forum Archive Index - March 2003

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

Hi Learner,

>
>
> Hi Snoopy
> 
> Do you still have your GMF or have you sold to BPC ? and what are your
> thoughts
> 

Goodman Feilder has been a bit of a roller coaster for me.   About three years 
ago I did 
a review of all the shares I owned, decided I didn't like the way GMF had 
positioned 
themselves in the market and decided to quit them when the time was right 
(within the 
next few years).

Then over the last couple of years the appointment of a new CEO has seen the 
company move in a different direction (branded food products) which I liked.   
So I 
reversed my 'quit at a suitable time' decision and decided GMF would form a 
core part of 
my on going share portfolio after all.

To be honest, I was rather annoyed at the Burns Philp bid as I had to agree 
with the 
GMF directors that it was opportunistic.     However, no competing offer has 
appeared 
and Burns Philp holds over 80% of the shares now.    So I have 'reluctantly' 
sent in my 
acceptance form this week.

I was a bit worried the acceptance letter might not get to Sydney by 28th March.
I rang Burns Philp today.  They said that if the letter was postmarked by 28th 
March it 
would still be accepted.   Personally I believe the bid will be extended again 
but we will 
see.

I say 'reluctantly sold' because if the shares get to the point of being 
compulsorily 
acquired (and I think there is a very good chance that they will), then I would 
get a 
cheque in $NZ (because I am registered to a New Zealand address).   But I 
wanted to 
keep the capital in $A.  If you are an NZer you can only get $NZ if you accept 
the offer 
by filling in the form.   

I have this parallel vision of a person thumbing through the 'Cars For Sale' 
section of the 
Weekend Paper and seeing an ad for some 'thoroughbred vehicle' (read old 
dunger) for 
'reluctant sale' at an outrageous price.   Whenever I see an ad like that I 
think to myself:

"If that guy is really so 'reluctant to sell', then why is he doing it?"

Well, now I am that 'reluctant seller' animal!   So why am I doing it?   I 
certainly don't 
think GMF is an old dunger (and I'm not wearing rose tinted glasses).    But I 
don't think 
it is realistic to hang out for a higher price in the short term, and I want 
the $A, so.....

Nevertheless, I harbour a secret hope that the bid for all the shares will 
fail, then the 
share price will drop back and I will be able to repurchase my shares at a 
cheaper price!    
But if things go wrong and GMF is 'mopped up',  then there are other good 
investment 
opportunities out there.

SNOOPY


--
Message sent by Snoopy 
e-mail  tennyson@caverock.net.nz
on Pegasus Mail version 4.02
----------------------------------
"Stay on the upside of the downside, 
Anticipate the anticipation!"




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