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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (14350)	4/22/2002 9:54:33 PM
From: Spekulatius	Read Replies (3) \| Respond to of 78507

After researching lumber companies a bit I bought a medium size position in FFS (Fletcher Challenge Forests) a New Zealand lumber company. My reasons: 1) Intrinsic value 2 x stock market value (according to chairmans presentation) 2) From different angles I am hearing that the lumber business has turned around strongly (my brother works in the lumber business) 3) FFS has a painful reorganization behind them but seems to be turning around - the actual results are still distorted by non cash writeoffs 4) New Zealands lumber industry is restructuring 5) New Zealand should have a cost advantage due to almost ideal growth conditions for pines. 6) Nice chart I admit I have still a lot of work to do to analyze the company but decided to get in anyways - the cyclicals in Europe and US have rebounded sharply and I expect FFS to do likewise.