Forum Archive Index - February 2003

["G Stolwyk" <stolwyk@wave.co.nz>]

I am looking at some $105 mill. profit this year and based on 212 mill. shares that will give an E/S of 49.5 cents. The  SP is now $8.40; therefore the prospective P/E is 17.0; not too high.

 

A dividend of 45 cents and an imputed yield of 8.0%, a high yield.

 

SKC has $60 mill. set aside for buying shares back but at these prices, that won't happen, I think. Therefore add $2.9 mill. after tax profit as well.

 

McEwan's earnings rate of 17% this year is totally up the pole. Last year's earnings were $85.1 mill. Based on $105 mill+$2.9 mill. we are looking at a prospective earnings rate of 26.8%, in my opinion.

 

Prospects will look even better if interest rates are to come down.

 

Please consult your financial advisor first if you so wish.

 

The prospects of SKC are adequately discussed on the other channel.

 

Gerry