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Re: [sharechat] BIL Capital Notes. Accept ? No Way!

From: "" <>
Date: Mon, 18 Oct 1999 16:20:13 +0000

> At a share price of 45 cents the notes have a yield to
> maturity of 14.39 %.
Yes but at maturity there is no guarantee of  your notes being
bought back.
> Brierley haver already announced a 3 cent dividend for this year,
> this is  below the 4.5 cents annual interest payment on the Notes.
Did you know that the share of earnings from Brierley's three core
 assets last year (Air NZ, James Hardie, and Thistle) was 6cps?  
Barring any more writedowns that is the sort of dividend you might 
expect in future years.  And if the Brierley share price recovers to 
47c by the end of the year, you will have been better off with the 
shares than the notes this year.
> 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.
I can't be sure.   But I think over time the share price should 
approach the last published  asset backing- around 90c.
> Even given the buy  back of  100 million shares (currently
>in progress) the price has still fallen.
but not grossly more so than the rest of the market over the same 
time period
> 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.
Can you name one investment company in the entire history of the New 
Zealand Stock Exchange which after it has collapsed has had money 
left to pay out anyone but the banks?   I don't disagree with your 
statement but I think the improved security is theoretical only.
> We have had Brierley shares in a family trust  for years and are
> very happy to switch.
Whatever.   In the end we all have to make our own decisions.   Just 
don't say Snoopy didn't warn you. SNOOPY
Message sent by Snoopy 
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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