Forum Archive Index - April 2000

[ril <ril99_99@yahoo.co.uk>]

The problem with WPTCA I think is that it can not be arbitraged with the
Australian share. Thus the NZ listing can not be shunted and sold in
Australia. This has meant that the price has lagged the Australian
equivalent after the appropriate adjustments.

I believe the unfortunate structure was necessary for tax reasons.

Secondly, rising interest rates are negative for intermediaries with
regard to profitability.

Whether to hold or sell I couldn't say except that interest rates are
pegged to increase this year unless there is a crash of course. The
yield is attractive.

Tower is an unusual share. GPG had a crack at it and it appears that the
current directorship are enthusiastic about their jobs rather than the
benefit to shareholders. It is a potential takeover target for one of
the foreign banks but I suspect that they are to some degree concerned
about the self serving directors and senior managers frustrating a
takeover.

Also, banks in general are having a crack at insurance themselves. So
called disintermediation (a nice long word). However, a friend of mine
made a token phone study of banks role in the insurance sector in your
country which revealed that they are overpriced and rather poor on
service. Insurance can be quite complicated. Banks often insist that
people take out death insurance when getting a mortgage.

So who knows. For my money a proper insurance broker is the go. But
banks have quite a bit of leverage in flogging insurance.

Something to think about IMHO.

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