http://www.dailytelegraph.news.com.au/common/story_page/0,5936,4206265%5E462,00.html --------------------------------------------------------------------- This story is from our news.com.au network Source: Courier-Mail back PRINT-FRIENDLY VERSION EMAIL THIS STORY --------------------------------------------------------------------- Bottom fishers rush in as Mayne shares recover Matthew Hart 27apr02SHARES in Australia's biggest private health care provider Mayne Group yesterday recovered some lost ground despite calls for the company to reconsider chairman-designate Peter Smedley's future. --------------------------------------------------------------------- The stock dropped 27.57 per cent to $3.81 on Wednesday after a surprise profit downgrade, but yesterday reclaimed 16¢, or 4.2 per cent, to close at $3.97. --------------------------------------------------------------------- Analysts said "bottom fishers" had moved into the market to snap up the oversold stock. --------------------------------------------------------------------- CommSec equities strategist Gavin Duffy yesterday said Mayne's rebound would not reach previous price heights but the company's stock could recover to just under $5 over the next few weeks because it still held a valuable portfolio of assets. --------------------------------------------------------------------- "I don't know if investors will say it publicly, but I think they would have to ask questions about Smedley's rather authoritarian view of running things," he said. "The man has eroded shareholders' funds, he's eroded a lot of people's investments, he's responsible and will have to act accordingly." --------------------------------------------------------------------- Shaw Stockbroking head of research Scott Marshall said the market was disillusioned with Mayne's management and it would be difficult for the company to regain credibility. --------------------------------------------------------------------- "The market wants to see that management will change its current strategy because they see that the business has suffered from the way doctors and other critical people Mayne has a relationship with have been treated," he said. "They've made some changes in Mayne's management already, but the market would like to see further changes within Mayne's management." --------------------------------------------------------------------- Last December, Mayne announced that chairman Mark Rayner would retire this September and Mr Smedley would succeed him. --------------------------------------------------------------------- Rob Patterson, managing director of Argo Investments, which has holdings in Mayne, said Mr Smedley's strategy had not worked and needed to be revised. --------------------------------------------------------------------- "Frankly, I think the board should rethink Smedley going on to become chairman in light of what's happened," he said. --------------------------------------------------------------------- "I think it is up to the board to decide whether Smedley should go, but I think it would be a mistake for him to become chairman. --------------------------------------------------------------------- "The company needs to consider a buyback if, in the directors' view, the shares are cheap, but there is some work to do to restore credibility." --------------------------------------------------------------------- Mayne said it would consider a share buyback if it could find no better deployment for its $1.5 billion in available funds by the end of the year. --------------------------------------------------------------------- Analysts said the company should temporarily halt its growth ambition and consider a share buyback while it works to revive its ailing hospital business. --------------------------------------------------------------------- STORIES IN THIS SECTIONStadium shares put on a spurtMobil springs a $208m 'leak'NZ Reserve chief quits to contest seatBottom fishers rush in as Mayne shares recover Clark's comments "inappropriate" OpenTel sues its biggest customer14-month high for dollar Banks boosts stocksMitsubishi to invest $1bnDollar surges higher Pasminco gets conditional relief Andersen renews bid to settle case New venture for Bendigo Bank Bye bye to boom returnsRich avoid stamp dutyJobs under threat at Holden History's biggest splotch of red ink World first by listed SA firmPM poised to push China on trade deal $85m deal buys 1300 jobsMetcash pulls off stunning coupClouds part for growth. --------------------------------------------------------------------- The lowest RSI has been in three years is 13.10 on September 24th 1998 on April 23rd 2002 RSI was 1905 it has now turned up slightly and sits at 23.81 accumulation has turned up slightly just in the last day bollinger bands are still extremely wide the high on October 17th 2001 was 7.50---ofcourse it has been higher than this I only have three years of data (ie it was something like 12 dollars at one point before Optus floated.) ----------------------------------------------------- MAY bouncing around off $3.90 ------------------------------------------------------- Last Tuesday between 12pm and close Merrills or their client/clients spent about $60,000 on MAY puts. The next day they were worth about $750,000. ASIC/ASX must investigate. That smell terrible. Reported in Friday's AFR.
SYB Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
