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Re: [sharechat] Financial Analysis - TEL


From: "hugh webber" <hugh.webber@clear.net.nz>
Date: Sun, 27 May 2001 10:10:13 +1200


I've been out of TEL for some time now - since they indicated they were 
going to cut dividends in half and the competition intensified.
To be fair to TEL they did first signal the cut about a year ahead.
Have you considered the effect of the $500 mill TEL share placement
on your ratios?
As long as TEL (and the others) are making a substantially higher % return
on their activities than they are paying as a % rate of interest then
there's
no problem. But are they with very strong competition?
As long as a company can pay its ongoing debts and has positive 
shareholder's funds there's nothing, legal or otherwise, to stop it
trading. There's another ratio, the quick assets ratio which is less of
a blunt instrument than the current ratio and just looks at what's easily
available and what's due in the short term
You should look for a strong ongoing positive cash flow to find companies
most likely to reward shareholders.


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