14 Dec 2012

Rubicon shares fall a further 3.5%

7:15 pm on 14 December 2012

Rubicon says its current share price doesn't reflect the true value of the firm.

Shares in Rubicon dropped 1 cent to 27 cents - a fall of 3.57% - on Friday.

Rubicon has a one-third stake in forestry biotechnology firm ArborGen and a majority stake in wood mouldings company Tenon.

The company said the sluggish US market is beginning to turn around and Tenon will benefit from the pick-up.

Rubicon chairman Stephen Kasnet says while prospects are positive, the firm's value is partly determined by uncontrollable factors such as the strong New Zealand dollar and weak US currency.

Mr Kasnet says its portfolio is in a growth phase so it doesn't have any spare cash to pay a dividend to shareholders.