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Re: Re: [sharechat] one broker's view

From: "hugh webber" <>
Date: Sun, 31 Dec 2000 10:09:38 +1300

replying to Michgore; I'm not keen on Carter because of
its present ratios - 3.6% gross dividend yield and a P/E of
18.2 ,according to yesterday's Press, are respectively
way below and above the market averages. I recall recently
seeing somewhere that Carter's parent IP is rather stretched
and has no show of making a minority buyout of Carter and
I have previously noted heavy reservations on investing in
commodity producers and we now have a growing world economic
slowdown with obvious implications for commodities - also
the building industry in Australia and NZ is now on the back foot.
Fair question re why not the same view re FCL Building but
in this case the broker has supplied some reasoning although
they make a caveat that they are looking to the long term on 
FCLB, not the short term. Their reasoning goes that the FCL Board
says 'the value of FCLB as a standalone entity far exceeds that 
offered by interested financial and industry players'. They mention a 
4 point program of portfolio re-alignment, divesting in India and
South America and exit of underperforming and non-core assets; 
a cost/operational program for reducing costs; new growth
opportunities - including e-commerce initiatives (mein Gott!) and
extension of R & D into composite building materials (they don't
mention China, phew!); FCLB will support the FCL restructuring
process (what does this mean...). Declining cyclical prospects
blah blah blah mean its better for FCLB to standalone and they think
its a good buy in the long run - value $3.54 a share.
There's no reasoning on Tranzrail, maybe there is in their website
particularly if you have client access but I suppose they think
that there is sufficient interest in hocking parts off at above current 
book value.
No reasoning on Sky TV but I notice it doesn't have any ratios in
the Press (not a good look) due to heavy development I guess
but they now have TVNZ/Telstra/Saturn heavily breathing down their
neck and I suppose there's new technology round the corner such
as watching TV on your new larger PC from all over the world.


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