anyone hold this one?, page-8

Dragonz,

Mostly stick to resources, but do hold this one. Have had a modest holding since 95, sold some before the split, sold the FPH, and had heaps of divi's from them.

Unfortunately bought quite a lot around $2 a year ago, again around 40 c recently, and a few at 32 on Friday (aware of the risks). Provided we don't do an NPX I expect to do OK once the debt is worked off.

With the offshore manufacturing shift they've been between a rock and a hard place, bashed by Kiwi's for being unpatriotic etc, bashed by hindsight-analysts for not doing it earlier.

The debt currency snuck up on those same useless analysts. I wasn't watching FPA closely (bottom drawer), but those with currency hordes like PPP and NZO I've been monitoring the currency effect, ditto oilers with USD debt. Most resource investors even on hc have been imho. ABSOLUTELY NO EXCUSE for professional analysts to have been blindsided by the currency driven debt blowout. Those that useless have no right imho to be giving lectures and retrospective advice to FPA.

As for Kiwi's bashing them, well there's no support in NZ for any decent manufacturing effort, or any other business other than property for that matter. It's a miracle that FPA was able not only to survive, but to thrive, and to spawn FPH in an environment as hostile as the Sahara is to growing letuces. Fact is FPA is the only significant manufacturer of a complex consumer (or capital) goods in NZ, and FPH the only of it's type also. Management must have been doing something right!!!

And the debt, well it has just shrunk a good 10% or more in NZD in recent days. Sell the real estate and we could immeditely be back around NZD 400mm - a lot quicker than people expect.

Having said all that, I am keeping some powder dry in case there is a rights issue.

EL