James Ross, Online Opinion
My investor’s dictionary defines “risk management” as “The process of analyzing exposure to risk and determining how to best handle such exposure”. It’s a basic pillar of any business operation, large or small. Logging giant, Gunns, and the timber industry it has propped up, ignored the risks and are paying the price. Now some want compensation. How ironic.
Let’s look at the facts. Until fairly recently, Gunns was a market darling. Its share price was heading upwards faster than a Paulownia on speed. Reports of dodgy environmental practices, poor treatment of local residents and the poisoning of local wildlife were laughed of by the investors who saw only dollars piling on more dollars.
The policy was roundly applauded by the timber workers union in Tasmania, the CFMEU, much to the chagrin of its usual sugar daddy, the ALP, as well as CFMEU branches on the mainland.
And:
Investor confidence in Gunns is vital to the viability of the planned pulp mill. A rough analysis indicates that there has been significant fluctuation in the company’s share price — from an all-time high in 2004 of $4.80 to a low last October of $2.71.
Now:
Latest Stock Market detail: Here
Earlier:
Tony McCall: The industrial museum at Long Reach


















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