GTP 0.00% 12.0¢ great southern limited

Put these on your watch lists

  1. 10,543 Posts.
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    Well I'm back to my favourite subject - after watching the timber stocks for the last month or so I'm personally satisfied (and very profitably so) that we have established a significant bottom in the tax driven plantation timber sector - very possibly one of the safest sectors to be in now almost regardless of what else happens in the market (within reason).

    This is a ramp for GTP, TIM and FEA, yes, and here are the reasons why I think its a good time to be long here.

    1/ All stocks in the sector have established good bottom patterns - FEA has in fact gained nearly 40% from its absolute bottom but on relatively light volumes characteristic of the stock.

    2/ All stocks are trading at substantially beneath their nta's but have proven they now have sound financial bases to work from. Their last seasons have closed and they are beginning the build to the next season.

    3/ Why do I say they should be safe regardless ? Well lets take GTP as an example (my favoured 'safe' timber stock btw for reasons I have previously posted ad nauseum about) and yes I am very long GTP, not quite so long TIM and have a handy 'spec' parcel of FEA acquired recently between 11 and 12c).

    Unlike almost any other type of company GTP has as a significant part of its NTA a stack of forest that will continue to grow in value - even in a complete financial meltdown (which isn't going to happen imo).

    GTP also has no debt whatsoever and has a very strong likelihood imo of declaring a dividend in the order of 5 or 6c (on a share currently trading at 57c) possibly as soon as next month ?)

    On top of this - have a look at who GTP's customers are. They have something in the order of 30,000 regular subscribers to their timberlots who on average invest in the order of $17,000 - not a huge sum but its across a very wide base! On top of that, the subscribers appear to be predominately white collar professionals such as doctors, dentists, lawyers etc, people for whom customers rarely get to regard their services as discretionary.

    Do some research - but in the current climate I very much doubt you will see these stocks much cheaper (if at all) then they are now and have been in the last month or so!!

    And to top it all of Rene Rivkins subscribers have absorbed what I believe is an enormous quantity of GTP stock sold off by Bell Potter and cronies when they feared being left long the stock in the face of a market wide collapse. Lucky RR subscribers. Seriously.

    Cheers all,
 
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