SHARES in timber and woodchipping company Gunns have lost nearly 50 per cent of their value in the past month and are trading near record lows at 54¢ a share after a disastrous half-year result.
This compares with a 10-year high of $4.38 in January 2005, reports The Australian Financial Review.
The group has put forward a restructuring plan and is still trying to get investors for its planned $2 billion-plus pulp mill in northern Tasmania.
In addition, chairman John Gay is defying large shareholders who have reportedly asked him to step aside, along with two other directors, given Gunns' shocking first-half earnings, which fell nearly 100 per cent.
Gunns' market value has fallen nearly $280 million since the day before its half-year results on February 22.
The stock is considered high risk and only for the very patient investor. There could also be ramifications for Gunns and its pulp mill quest if the Labor government is voted out.