Forum Archive Index - May 2000

["nick" <acummin@es.co.nz>]

            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
past month;
- 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
30/06/1999).

 

          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

 nick