I have watched from afar the share price of Gunns Ltd through the past week.
From an extremely low base of under 50 cents the Market removed a further 30% from the value of the shares in a week leaving the capital value at close to 275 million.
Some months ago Bob McMahon posted a well sourced note on Tas Times that ‘Gunns Was In The Hands of its Bankers’; this made instant news in Tasmania and pressure was exerted for removal.
This was done.
It has since become obvious that it is so. The restructuring is at the behest of Gunns bankers; they are calling the shots and approving the cheques.
The market is so bad in Logging, Woodchips and MIS corporations that it does not pay the Banks at this moment in time to put Gunns into Liquidation.
All is not however lost for a point will soon be arrived at where a takeover bid may emerge; the thinkers of this world can see an opportunity.
An ethical company under new management using selective logging and FSC accreditation has a real future.
Timber well harvested is a desirable commodity; we just have to be rid of the bandits.
At the end of the day on Friday a substantial buyer stepped into the market.
If they had not done so Gunns would have finished the week under 30 cents.
