Forum Archive Index - February 2002

["Sproul Family" <sproulfamily@wave.co.nz>]

QUOTE:

 

"  Show me a company in NZ or OZ thats a better investment than this"

 

 

Try this one:

 

 

CENTENNIAL COAL COMPANY LIMITED               2002-02-28  ASX-SIGNAL-G

HOMEX - Sydney                                                       

+++++++++++++++++++++++++
FINANCIAL HIGHLIGHTS FOR THE SIX MONTHS TO 31 DECEMBER 2001

* Net profit after tax          -    $15.1 million

* EBITDA                        -    $22.9 million

* EBITDA/Net lnterest Cover     -    16.1 times

* Earnings per share            -    17.5 cents per share

* Interim dividend              -8 cents per share (unfranked)

 

 

The 8 cents dividend is double the 4 cents US company (Centex) paid, to yield 00.28%.  Centex trades at $57.00.

 

The other US company mentioned , Beazer homes, currently doesn't pay a dividend

 

You could have picked up Centennial at $1.70 yesterday. Assuming an additional final 8 cent dividend later this year, that's a yield of 9.4%.  As recently as December, Centennial could have been bought for $1.22.

 

I am not saying that these stocks are forever holds.  Construction, just like coal is recognised as a cyclical industry. Take it while the going's good.

 

A further note: US figures released yesterday showed new home starts for last month were the lowest for many years ( can't remember exactly how many years).  So if I held some of Centex or Beazer, I would be thinking of cashing in a little of the gains.

 

Discl.: hold a few Centennial, naturally .

BEGIN:VCARD
VERSION:2.1
N:Sproul;David
FN:David Sproul
EMAIL;PREF;INTERNET:dsproul@corsairmarine.com
REV:20020228T084013Z
END:VCARD

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