Journal Article Called Alarmist

Press, Volume CVI, Issue 31188, 12 October 1966, Page 21

Journal Article Called Alarmist

Describing a monthly stock market journal article about N.Z. Forest Products as “alarmist” and “unwarranted”, the managing director, Mr R. H. Smythe, said shareholders should not be scared into selling at a loss.

Allegations were made in the article that N.Z. Forest Products forests were being threatened by the spread of Dothistroma pini, a fungus disease.

It was also claimed that N.Z. Forest Products did not know how to deal with the disease and that shareholders were disposing of their shares. N.Z. Forest Products shares reached a peak for the year of 24s 6d on August 15. By last week the price had eased to 22s 7d. A slide started on Thursday, and by Monday's close it was 20s 9d, a low point for the year. Mr Smythe said yesterday that shareholders should not be scared into selling unnecessarily and at a loss. Directors had mentioned the disease in the last annual report, and at the annual meeting shareholders had been told what was being done to combat it. Everything that the company and the N.Z. Forest Service knew about the fungus had been straightforwardly reported.

Only some 24,000 acres out of 250,000 owned by the company had been affected, he said.

These were mainly young stands. Most of the company's forests were about 15 years old and not likely to be affected. Diseased trees would be sprayed twice this summer. This would prevent the spread of the fungus. Two sprayings would be necessary because of the new summer growth, he said. Mr Smythe emphasised there had been no loss of forest or forest growths. If the worst came to the worst affected areas could be replanted. There was sufficient mature timber to keep industry going and plenty of time for new stands to mature, he added.

CantweP Issue Plans for a cash issue at par to shareholders and convertible noteholders were announced by Cantwell Creations, Christchurch women's clothing maker, yesterday. The basis is’ one share for every four shares or convertible notes held on October 25.