Mayne Group (MAY) is trading lower today. The company announced, after the close of trade yesterday, that it's net profit for 2002 will be as much as 18% lower than forecast.
Subscribers who purchased MAY as part of Rene's recent Blue chip portfolio should not panic. The portfolio is a long-term portfolio and as such short-term aberrations in share price should be of little concern to you. If Rene's view on MAY changes, we will notify you immediately.
PBL has also softened due to bearishness about recovery in the advertising market. Again, subscribers are in this one for the longer term and short-term volatility is part of investing. This volatility should serve to remind us all that investing in the share market always involves potential downside and we should always allocate capital based on downside risk tolerance. No change to the PBL advice at the moment but we will inform you if RR changes his view.
In regards to those who took my advice and bought OSHPB last year, the first conversion period is upon us.
The first half of the notes has converted into $55 worth of shares based on a 10% discount to the VWAP (volume weighted average price), which is to be set over the next two weeks. Many players have already started to sell their new shares by shorting or selling old shares. This has caused short-term weakness that I believe will not last for long. Therefore, I believe we should hold and look to sell our new OSH shares at higher levels in the weeks/months ahead.
This investment certainly has been a winner so far with very little risk.
Nigel Littlewood
SYB Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
