Bulletin Mag in December announced its hot stocks of the year...

Bulletin Mag in December announced its hot stocks of the year and FEA came in at number 7 out of a top 50

How it works: The ranking matrix is based on financial health, return on assets (ROA), one-year ROA growth, one-year EPS growth, two-year EPS growth and three-year return to investors – inclusive of dividends

All data is current as at November 11, 2005.

Number 7 - FEA

CEO/MD: Andrew White – appointed March 2003

Financial health rating Strong
ROA (%) 9.71
EPS growth 1-year (%) 132.155
EPS growth 2-year (%pa) 218.161
PE/PEG 8.67/0.07
Market capitalisation ($ millions) 156
3-year return (%pa) – inc dividends 69.27

Managed investment schemes have been one of the best-performing ASX sectors in recent years, also providing tax-effective agricultural investment products to investors. After a difficult period in 2000, when the industry suffered from a fall in investor confidence due to unfounded concerns about the tax effectiveness of some schemes, the sector has recovered strongly. Forest specialises in timber plantations and is involved in all aspects of forestry management, from the establishment of plantations to project finance, plantation management, harvesting, processing and the marketing of woodlot projects.

FEA more than doubled its net operating profit before tax and significant items to $22.1m in 2004/05. The improvement was attributed to strong demand for the company’s new investment products and a solid contribution from its timber-processing operations. The outlook is positive, with strong economic conditions in Australia ensuring that high demand for investment products is likely to be maintained.

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