At the turn of the century Gunns was still a small company. In 1998 the turnover was $97 million and after-tax profits $3 million. Profits peaked in 2004 at $105 million on turnover of $674 million. Gunns joined the ASX100 and Gay was the darling of institutional investors, providing capital growth and healthy dividends return, at first from woodchipping but increasingly from managed investment schemes (MIS).
Under Gay’s chairmanship, native forest woodchipping and MIS contributed over 90% of Gunns’ profits and cash flow. In profit terms woodchipping peaked in 2004 and MIS in 2006.
SO as was stated in relation to great Southern plantations in the senate inquiry,is MIS nothing but a Ponzi scheme?
GNS Price at posting:
0.0¢ Sentiment: None Disclosure: Held
