Forum Archive Index - April 2000

[Chris Darby <darby@ak.planet.gen.nz>]

Yes Ril good point.

But my guess is that any analysis of this deal will be avoided by most 
and they will bounce in blind to the market tomorrow and bid the value to 
something closer to A$300.  They will have only ADV and SMR on their 
minds and be absolutely determined to be onto this one early.

As I see it Cullen have already made the cream by selling to such an 
obliging and well mannered purchaser.  The one Watson company that gets 
little mention these days is Eldercare where Cullen assets were sold into 
NZ Petroleum.  Similar story just different packaging.

And ELD...... doubled/tripled in price?  Oh, best for the punters to 
check that success story for themselves. 

Buy Baycorp any day if you want exposure to a similar business model but 
not this FRO announcement.  Too expensive I hear you say?  Look further 
and you will discover the best Tech company in this country and about to 
break into the NZSE10.  Fortunately it does not subscribe to the PR 
method of share price manipulation that Watson and Cullen play .  

Chris 
  


Ril wrote;

>How can a debt collection business which a public company is currently
>paying $A80 million for (not yet settled) be priced  by the market (by
>all indications when market again trades) at over $A200 million?
>
>Isn't this a little rash? For instance, how much does the collection
>business make? 
>
>Or, is this the new maths?

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