apl +5c futuris ?, page-2

APL's rise doesn't make sense. They had low sales and given the "arms length" commercial arrangement they have with FCL's subsidiary, ITC (who supply forestry management services for APL), APL's gross margin will be significantly lower than the fully integrated players such as TIM & GTP who clip the ticket at every stage.

As such I expect that APL will make virtually no profit or a small loss given their fixed cost base for the 2003 FY.

However, if you are looking long term, the story might be different, but I think it will be at least a couple of years away as the others have a stranglehold on this segment at this stage due to APL's checked history. However, you must be remember that APL's gross margin will be much lower than the others.

So beware if you are thinking of speculating based on chart movements.