doomsdayers, page-11

I believe you are right Zwu. FEA are going to have great trouble selling their land. Even the forest spider knows that no one will buy at the price they need because they (FEA) are over a very tight barrel and desperate for cash. Unfortunately for shareholders and MIS investors the Board and the CEO have led them into a blind alley. Their great adventure, probably inspired by greed over their 2008 MIS success is the Auspine pine resource acquisition. Done primarily to nark Gunns and secure the raw material quota to convert the capital value of both pine and plantation eucalypt into a handsome loss at the new “state of the art” Bell Bay sawmill. They make the equivalent of petty cash out of their share of the Smartfibre woodchip mill; maybe just enough to cover executive wages. They have no native timber left to sell. They get a bit through the till from MIS leases (which go straight back out the door) and Management Fees (which seem to have no scrutiny). The future looks very bleak indeed. I can’t imagine the banks being happy to wait around for the same slim pickings of the MIS sales in June next year. In the meantime it is cash out the door at the rate of knots. They are ripe for the plucking at the timing of an obviously interested corporate body which is sitting and waiting patiently.