future prospects, page-2

I highly recommend reading the Chairman's update at
http://www.willmottforests.com.au/downloads/HOME_PAGE_LATEST_NEWS/V_Company_Ann_-_WFL_Ltr_to_Growers__Advisors_20_May_2009.pdf
which wasn't an ASX announcement.

Willmott Forests has rolled over its debt and "will not need to renegotiate any bank debt facility until 2011". This, along with its conservative approach to recognising income, means there's no chance of failure in the fashion of Timbercorp or Great Southern.

The $65 million in MIS sales in FY2009 was a pretty damn good result considering the circumstances. If there is no major change to the MIS system, it's hard not to see FY2010 being better.

The significant corporate risk now seems to me to be the government abolishing MIS entirely. That would place Willmott Forests in a precarious position - exactly how bad I'm not entirely sure.

A dividend reduction might be prudent considering the circumstances, and dilution from PINES conversions may reduce the per-share dividend anyway.

The reason my sentiment is "Hold" rather than "Buy" is that there might be further downward pressure on the share price following PINES/WFLPA conversions. In the long-term I think this is a risky but potentially rewarding investment.