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 Gunns shares chopped down 

Gunns shares chopped down

22 Mar, 2010 11:01 AM
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.

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Interesting that theyprobably no longer have a "friendly government" in power in Tassie - and about time too.
Posted by maybalene, 23/03/2010 10:01:02 AM, on Stock & Land
And now Mr Gay is being held responsible for the impact of a US$0.92 Aussie dollar on this export intensive company. What goes up will also come down and that means whatever shares go down due to exchange rates will also go back up. Gunns look like a very good long term stock to me.
Posted by Ian Mott, 23/03/2010 10:51:38 AM, on Stock & Land
Ian, you obviously have very little idea of the appalling operational procedures of Gunns. Their destructive methods of harvesting timber are backward, severely criticised by those who harvest with 'proper' techniques (such as FSC/ European harvesters), are environmental vandals, and are killing the appeal of Tasmania for the valued tourist trade. Your 'old school' ideals are hopefully being replaced as we speak, for the sake of future generations.
Posted by brett sanders, 23/03/2010 8:19:51 PM, on Stock & Land
Brett Sanders, I am a past national executive of Australian Forest Growers and have a detailed grasp of forest industry practices all over the world. I had a key role in developing codes of practice in both NSW and Qld and have punched large holes in the science of numerous PhD papers and CSIRO "rent-a-findings". Gunns operations are fully compliant with the Tasmanian Code of Practice which is head and shoulders better than what the FSC has accepted in european certification. Furthermore, more than half of Tasmania's forests are set aside for tourism and conservation purposes. So you might be able to flog your ignorant, defamatory bull$hit to a bunch of urban plodders but it won't wash here, matey. So off you go now, back under the rock from whence you came.
Posted by Ian Mott, 24/03/2010 1:13:13 PM, on Stock & Land
So Ian, is the clearfelling of old growth forest ie The Styx, The Weld, The Tarkine- considered by yourself, to be better than the European model of sustainable forestry that has occured sustainably and will occur sustainably for many generations to come? You just have to see first hand the appalling practices that occur in Tasmania- old growth clear felling, fire-bombing of decent timber (huon pine, celery top etc) that is seen as 'waste', monocultures that require large amounts of toxic chemicals (look at the recent issues at St Clair for example- with chemicals in the water ways), 1080 fed to native animals etc etc... to realise that what you endorse does not have a long-term focus. Just smash and grab tactics. Will be interesting to see what happens if the balance of power shifts in Tassie. No longer will dodgy government/ corporate bedfellows be able to 'run' that state. How does the Tasmanian code of practice (ie terribly backward, brutal and shortsighted) come out 'head and shoulders' ahead of FSC certified methods?? Unfortunately your forestry paradigm reflects your agricultural paradigm. Thankfully your lot are dying out- replaced by a more sensitive, intelligent lot.
Posted by brett sanders, 25/03/2010 9:44:23 PM, on Stock & Land
Ian Mott, you also may care to read the article from Friday 27 march- stating how Gunns and FSC certification are a necessary collaboration if Gunns wants to stay afloat. Once again, you obviously have NO idea on the real world, on sustainable forestry or sustainable agriculture, and are one of the few dead heads (like Mr Gay and Mr Lennon) who are only interested in short sighted profits while screwing everything in your path. "Bugger the future generations, we have profits to maximise", we hear you trumpeting.
Posted by brett sanders, 26/03/2010 7:54:46 PM, on Stock & Land

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POLL
Q: Should any of the three AWI directors criticised by Italian manufacturers earlier in the month resign?

Yes - all three
(64.6%)

Yes - but only Olssen and Sheil
(2.7%)

Yes - but only Modiano and Olssen
(0.4%)

Yes - but only Modiano and Sheil
(0%)

Yes - but only Olssen
(1.9%)

Yes - but only Sheil
(0.8%)

Yes - but only Modiano
(0.8%)

No
(29%)

Total Votes: 525
Poll Date: 21 March, 2010

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