Forum Archive Index - August 2000

["Mike Hudson" <mikehudson@clear.net.nz>]

Brian wrote

 

Mike

"Isn't there an overriding factor in the whole saga of FLC as to final outcome of the sell-offs ?

Is the whole enterprise to be wound up are is there an aim to revert to their core business after the failure of  expansion into areas outside their basic expertise ?

Might it not be logical for them to fall back to FLB having divested themselves of the problem areas of  Energy and Forests?   As you say there is strength in the FLB part of the enterprise.

BG "

 

Brian

Anything could happen. The objective of the Board is to get the best result for the shareholders and as such all options are being considered. If a third party comes up with an offer for FLB which is a reasonable premium to the current market price (a la FLP) they would take it. This is why the management of FLB is desperate to get the price up. The interests of the Board of FCL and the top brass of FLB are not necessarily the same.

 

Tony

Nick is quite right. The shares listed at $3.61 in March 1996. I bought more in March 1997 at $4.33, Sept 1998 at $2.15, Feb 1999 at $3.16, Apr 1999 at $2.47, March 2000 at $2.08 plus dividends reinvested at various prices over the years. My return on this investment has been an average of minus 4.5% per annum for four years- hence regret.

 

However I believe that there is upside from here. If I had the nerve I would increase my position but I will be hanging in there.

 

Cheers

Mike H

 

P.S. Just got back from watching Nelson Bays beat King Country; makes up a little for the disaster at the basketball.