Forum Archive Index - October 2002

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi MacDunk,
 
>
>I would like to share some of my views with fellow posters.
> 

Great!  you should do it more often

> 
>I would never back half the horses in a race to find the winner.    
>I hold shares in at most, five companies at any given time.   
>

I think there is something to be said for focussing on a few shares 
rather than mimicking the market by owning 30 or 40.  You stand a good 
chance of staying right on top of things if you own only 5 shares.


>
>We can all make a bad choice but stick with what you understand. 
>    


That sounds like sensible advice.   Although you should always leave 
yourself open to learning more and as a result understanding more 
IMHO.


> 
>My disclosure is, I have four out of the five in the Share Guru
>competition, so look me up.   I never have shares in a company if
>they start anything up overseas, (they have big boys over there).
>
>

Possibly that is unnecessarily cautious.  Kiwi companies can do very 
well overseas if they stick to their knitting.  Michael Hill and 
Scott Technology come to mind.  The latter works entirely overseas.

>
>
>I look for trends and growth mostly, with an odd high 
> dividend yield in others.
>All companies must be on a rising profit margin with
> expectation of doing better
>
>

Let's go through your picks.

1/ Kiwi Income Property Trust:  Probably New Zealand's best property 
company.  I guess this is your high yield share?

2/ Ports of Auckland:  This is one of the few companies (the only 
one of your selections) that pass the focus investment group 
screening criteria.  It doesn't get discussed in this forum much.  
Would you like to share with us why you picked POA, as opposed to say 
the Lyttelton Port Company?

3/ Steel & Tube:  Just discussed extensively by me.  A very sound 
business with a good yield.  Do you have good personal experiences in 
dealing with them?

4/ Wakefield Hospital:  (which is now Bowen hospital as well I 
believe).  Perhaps the clanger float of 2001, although maybe more 
realistically priced now?  I can't see how rising profit trends and 
growth stack up with this pick.

5/Wrightson:  Our leading rural supplies company, which is at last 
back on the right track.  How long have you been aboard this one 
Macdunk?



SNOOPY

PS  You call yourself a novice?  If all novices were as clever at 
share picking as you, the term 'pro' would be redundant!


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