Forum Archive Index - June 2001

["Philip Robinson" <robph639@student.otago.ac.nz>]

Krypt,

 

I have been following this stock in an interested way after doing some analysis at Christmas and getting an analysts report. I noticed the 28% increase in revenue, 20% increase in EPS, and 27% increase in Total Assets, although I also noted the decrease in earnings before Tax (EBT) and that is taxation was normal it would have been a 20% drop in Net Profit After Tax.

 

I would have much preferred them to have a 20% increase in EBT, and then have a $27,000 tax credit. I did not buy then, due to most part to the more appealing alternatives, and also to the mysterious rope that is holding the price at a PE of

6-7, with good increases in revenue, Total assets and EPS.

 

I was somewhat vindicated by this latest announcement, although they are expanding their broking into fixed interest and have brought a couple of super/life companies recently, I would be interested to see what the explanation from management would be. So I at least will be waiting until their next HY to see whether things have picked up again.

 

On a related point, with the publicity over Bridgecorp I got them to send me their latest AR, look at these figures:

 

Last Price ~ $0.63 (unlisted market)

 

Equity 97-01: 2,600K, 3,400K, 4,300K, 10,200K, 16,300K

Total Assets 97-01: 10,000K, 12,500K, 31,800K, 82,200K, 213,600K

NPAT 97-01: -123K, 190K, 887K, 5,426K, 9,300K

ROE (01) = 51.3%, ROE (00) = 67.2%

EPS (01) = 0.165, EPS (00) = 0.122

PE ($0.63) = 3.8

 

But it is unlisted, and this is an important point, one can see that growth, ROE and price and think that there is a side to the story that I are missing. Any thoughts?

 

Cheers

Phil