Hi Ombre,
I sold my shares in Canam Manac last autumn with a small profit. It seems that the company goes in the right direction since at least a year and a half, but it also looks as though there is always a few problems important enough to reduce the earnings, so the stock price never goes off.
Activities in France are certainly one of those problems. An other one is the forestry equipment sector, which Mr. Dutil has already let it be known that it was for sale. Finally, the industry is very expensive to run; last year, capital expenditures were important and the formation of new employees was more costly than anticipated. All in all, those are the reasons why I sold. It was not a judgment on management, which, in my opinion, is doing its best. It is just that they do in a very tough industry, where profit is not easily attained. I think that there are better opportunities elsewhere, that's all.
The book value of CAM was $4.40, as stated in the 1996 Annual Report. I don't know what it is right now, but it is probably higher than the present stock price. Maybe you will find this info at the web site; here is the url: www.canammanac.com.
Hope I helped you.
Marc |
