Forum Archive Index - June 2003

["Shayne King" <shayne_king1@hotmail.com>]

My thoughts on Tower. Based on the information that has been given to the 
market i would say in the short term Tower is a speculative buy. This is 
because of the uncertainty regarding the GPG offer. In my mind there is no 
doubt that the offer is a much needed one. Towers share price has been 
struggling ever since it was issued and hasnt been able to reflect any real 
company value. While the company is never-the-less profitable at an 
operating level, it appears management have been content in enabling 
shareholders to find any real value from the stock. For those of you who 
disagree and say that the offer from GPG is a bad idea, i will assume that 
you are running of to your brokers in order to purchase GPG shares because 
they will, without a doubt, enjoy the most benefits from the deal. If GPG's 
offer is accepted by TWR shareholders and the 10% cap is lifted i would rate 
tower as a strong buy as its value is now able to be unlocked. However, for 
now, unless your ready to take a gamble on whether the 10% cap of TWR is 
lifted (god help the shareprice if it isnt), my best bet would be GPG. By 
buying into GPG you are taking a more indirect approach to the benefits that 
could be gained from the deal going through and reducing any exposed risk if 
you were to buy directly into TWR. And if the deal doesnt, GPG is still a 
strong company and wont be impacted any where near to the extent TWR 
shareholders will be if the deal falls through.
As of Monday morn (7 June) i wouldnt be in to much of a hurry to buy TWR 
since i noticed on Thurs and Frid the shareprice increased about 10c for no 
apparent reason other than speculation on the GPG deal going ahead. Its to 
early to tell yet and the shareprice should retract to a lower level next 
week. However, i would go out and buy GPG who had an enormous amount of 
volume on Frid (about 6000000) which is abnormal.
To benefit from any profits to be made from TWR shareprice, i put this one 
down to timing.

I look forward to your opinions.

Regards Shayne

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