intelli investor recommendation

Company: Great Southern Plantations Limited
ASX code: GTP
Recommendation: Hold for the Upside
Price: $2.38
Category: BLUE CHIP INDUSTRIAL
Issue: 152
Date: 25 May 04

Frankly, we’re amazed. Two of Great Southern’s main competitors, Gunns and Timbercorp, have already closed their prospectuses. Last year, which was a boomer for the industry, saw those two companies close their doors to new subscriptions in late June. This year they have closed in mid-May, which bodes extremely well for Great Southern. With the share price down 9% since issue 150/Apr 04 (Take Part Profits—$2.62), we’re upgrading our recommendation at this stage. While it’s hard to anticipate just how good 2004 might be for this company, we’re inclined to hang on to our shares and find out. It could be quite incredible. Everything is playing into the company’s hands at the moment with the land it bought from Challenger earlier in the year looking like it will come in very handy. We’re upgrading to HOLD FOR THE UPSIDE.