|Wed, 31 May 2000 15:53:04 +1200
St lukes are a victim of the current slump in New Zealand
property shares. The proposal will give shareholders 1.70 per share
for the company.
They point out that the price is
- 30% to the volume weighted average price of St Lukes Group shares over the
- 28% to the volume weighted average price of St Lukes Group convertible
notes over the past month; and
- 18% to St Lukes Group's stated net tangible asset backing per share (at
All very well but many of us shareholders didnt buy at the current price,
and its only the currently poor market conditions which have resulted in the
price being so cheap.
New Zealand is in danger of losing many more companies at bargain basement
prices if this continues. Which will be next?
I paid 1.77 a share last year and have recieved a couple of dividends
so just break even on this one.
What it does show though is that shares cannot stay greatly undervalued for ever
as sooner or latter someone will snap them up