Forum Archive Index - July 2003

[Marilyn Munroe <who.c@res.co.nz>]

My advice with this share would be to exercise caution.

In recent times this company has been heavily criticized by the commentators 
and the Shareholders Association for failing to deliver shareholder value.

GPG (Guinness Peat Group) is a dissident shareholder of this company and last 
year sought to wind it up because of its continuing poor performance.

it is generally agreed that the influence of the major shareholder, SEA Group, 
has been a negative influence.

I would characterize the company as an employment scheme for the directors.

The companies Australian subsidiary has recently sold one of its key assets. 

The hope of minority shareholders is that the proceeds of the sale will be 
returned to investors. Their fear is that it will be reinvested and given the 
track record so far 'pissed against the wall'.

The fact that they are trading at a substantial discount to asset value is an 
expression of the markets confidence that the directors are capable of adding 
value to the assets.

Boop-boop-de-do Marilyn

Disclosure: Hold GPG

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