Forum Archive Index - October 1999

["John Paine" <painej@hotmail.com>]

In answer to your observations about Brierley Notes

At a share price of 45 cents the notes have a yield to maturity of 14.39 %.
Brierley haver already annonced a 3 cent dividend for this year, this is
below the 4.5 cents annual interest payment on the Notes.

We haven't seen much growth in Brierley shares over the last few years - do
you really think there is going to be any now. Even given the buy  back of
100 million shares (currently in progress) the price has still fallen.

You are correct that liquidity may be less with the notes (300 million notes
comared with around 3 billion shares) but the Notes will still be listed on
the NZSE.

The security is definitely improved. The Notes rank ahead of the shares, and
have an estimated $1,300 million equity which would need to be lost before
note holders would be effected.

We have had Brierley shares in a family trust  for years and are very happy
to switch.

Cheers

John Paine




----- Original Message -----
From: <tennyson@caverock.net.nz>
To: <sharechat@sharechat.co.nz>
Sent: Monday, October 18, 1999 11:34 AM
Subject: [sharechat] BIL Capital Notes. Accept ? No Way!


> After spending a day or so reading, surfing, doing 'what if'
> scenarios and generally doing more homework than an amateur should I
> can see no merit at all in these things.
>
> Specifically, I see:
> 1/ Income lower than BIL  shares.
> 2/ Capital Growth Lower than BIL Shares (and that is after paying
> capital gains tax, if that applies to you).
> 3/ Liquidity not Improved.
> 4/ Security not improved.
>
> Why would anyone want BIL Capital notes? SNOOPY
>
>
> ---------------------------------
> Message sent by Snoopy
> e-mail  tennyson@caverock.net.nz
> on Pegasus Mail version 2.55
> ----------------------------------
> "You can tell me I'm wrong twice,
> but that still only makes me wrong once."
>
> --------------------------------------------------------------------------
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>

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