GTP 0.00% 12.0¢ great southern limited

Projects now rated a "strong buy" by Investorweb

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    Investorweb has put out a "strong buy" recommendation on GTP's projects. I'm stunned given what was being said a year ago, but it's good news now at least.

    Sent to me by email, the information is freely available to those who visit the Investorweb site
    http://www.investorweb.com.au/mb_story_details.asp?G=95&I=22014

    "Featured Funds
    Great Southern Offer
    By David Wright, 21 Jun 2002

    Great Southern Plantations 2002 / 2003 Project
    InvestorWeb Rating: STRONG BUY
    The Great Southern Plantations 2002 / 2003 Project achieves the highest recommendation under the InvestorWeb Research due diligence rating process providing growers access to proven management expertise in the establishment of large-scale eucalyptus plantations.

    With regard to the "personnel on the ground" , the Group is as well resourced as any Responsible Entity we have reviewed. Industry best practice silvicultural techniques are employed through access to quality external contractors (Rose & Bending, Plantation International & R.L Newman & Partners), in-house foresters / surveyor, a joint research arrangement with Forest Products Commission (FPC) and membership with the Southern Tree Breeding Association. The depth of the due diligence undertaken on plantation suitability and land acquisition / evaluation is second to none.

    After close examination and testing of the assumptions used in the forecasts contained in the prospectus we conclude that the forecast returns are achievable based on all known facts. More importantly, we have modelled the forecast returns using worst-case scenarios for the productivity per hectare, price attained per cubic metre, harvesting costs and the rate of inflation and have found that the project returns remain robust under all reasonable scenarios.

    The market for the end product is currently very strong and likely to be supported by a tightening of supply through the conservation and environmental issues relating to native forests now facing governments throughout the world. In addition, the increasing demand for paper and paper products being driven by the emerging markets of Asia in particular augurs well for woodchip prices in the future.

    In summary, the project is very well structured and incorporates all of the criteria important to providing investors with sound value for their investment and as such InvestorWeb Research is comfortable in rating the product as a STRONG BUY."

    Disclaimer: I don't own any forestry stocks.
 
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