Forum Archive Index - February 2002

["nick" <helmett@xtra.co.nz>]

          You have summed up my points well, many of these companies were
available
at single digit p/e s only  18 months ago making them genuinly cheap. Now
they seem fairly priced.
Sure tghey are good companies that probably have good prospects ut they are
no longer a bargain.
      With the current world situation looking shaky im more than happy o
hold cash at present.
 Reason is that at some time this year the NZ market will suffer a
correction, bought about by external factors. At this point those shares
will be cheaper than they are now.  When i look back over the last 12 years
of my stockmarket involvement , my best results have been when waiting for
genuine bargains
ie Corporate investments (montana).   Boredom has sometimes led me to buy,
just for some action, these impulse buys are the ones that have usually
failed to perform. Im happiest with a good solid company that is bought at a
cheap price which has long term growth prospects.  The cheap and cheerful
stocks make me feel nervous,  an example being ITC bought out of boredom and
a desire for quick profit, sold at a loss out of fear they were absolute
rubbish. They may or may not be future stars but owning them made me feel
sick.

    Nick




> hum, hrooom, can't say I'm very enthused by what's been offered.
>
> (Using last saturday's Press Business section 16/02/02) - median p/e
16.73.
>
> Contact - gross dividend yld 6.6%, p/e 16.9
>
> Restaurant Brands - gross div yield 7.4%, p/e 15.2%
>
> Sky City - gross div 7.7%, p/e 17.7
>
> Telecom - gross div 5.5%. 11.7
>
> Now, granted they're much better ratios than overseas which some
numbskulls
> (amateur full time funds managers) are still pushing but in the NZ
context,
> and I don't just mean now but recent historical which is what Nick was on
about
> they just don't hack it.
>
> And the comment that the NZ property shares have the same yields - excuse
me?
>
> KIP - 10.6%, p/e 10.6
>
> CNZ - 12.2%, p/e 7.9
>
> Nuff said.
>
> I'll have a closer look at Chris Castles list tomorrow, can't remember
what they
> were off the top of my head but my impression was they were pretty
speculative
> and very thin on dividends, particularly reliable recurring predictable
ones.
>
>
>
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