Forum Archive Index - June 2003

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

I am a little confused at why the WHS shareprice has turned from $4.20 about 
two weeks ago to $5.30 on friday. I mean, what was the act that was done in 
order for the market to perceive WHS shares as undervalued hence making a 
recovery??? How have things changed that much from May 30 when WHS had its 
last announcement about the resignation of their CEO and an ailing 
shareprice of $4.30??? As the market is aware, WHS has struggled with its 
Australian operations. Not so long ago i submitted a post comparing those 
problems TEL have faced in Australia with those of WHS. Both companies have 
not been able to make a real impact in Australia and as a result we have 
seen TEL shareprice hammered over the past 3 years. Still TEL is unable to 
make large impacts within Australia, but only now has the shareprice begun 
to recover, and thats really only down to the fact that the NZ dollar is on 
the rise and also that telecom are being able to prove to the market that 
they are a very well managed company when it comes to maintaining profits in 
times when revenues are down. So what has the WHS done to change everyones 
mind? I do believe that when WHS was trading at around $4.30 that this was a 
discount, however only a discount on its future outlook when things become 
more certain and WHS are able to iron out the creases they have in their 
Australian operations. Based on Fridays shareprice, i wouldnt touch WHS with 
a ten foot pole....at least!!!


Regards
Shayne

_________________________________________________________________
Surf the net and talk on the phone with Xtra Jetstream @  
http://www.xtra.co.nz/products/0,,5803,00.html !


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