doomsdayers, page-3

It has been announced today that FEA board has renewed the contract of CEO Mr. A White who incidently came from Gunns originally. They must have faith that the expected loss of $6-8m last year will not be repeated this current year. It is encouraging to note from Hartleyvale that sales expectations are good for woodchips. The last available figures (6 months to December 2008) also show good woodchip sales but the bottom line is a bit worrying. They made around $200,000+ in six months which in the scheme of things is a drop in the bucket. I suggest also you do not hold your breath waiting for a loss/profit turn around from the new pine/Ecoash timber mill. Their immediate problem is they seem to be short on cash. They can flog their land to the highest bidder and lease back but the prices are unlikely to be near valuation which raises questions as to the real book value of their properties. I predict Elders will panic and jump ship leaving Gunns to step in. In those circumstances Mr. White's shiny new contract might be short lived.