|Wed, 13 Nov 2002 19:18:56 +1300
Anybody out there can tell me why some shares are trading far below their
book value? For example, FFS has a value around 40c, but is trading at 21c.
For a start FFS haven't paid a dividend for as long as I can remember.
FFS have additionally made capital calls on shareholders in the last year or so.
FFS could have their returns impaired by the sale of a major forest they manage.
In essence, shareprice is determined more by the expected returns to shareholders than by the underlying asset value.
Hope that is of some help.