Forum Archive Index - February 2004

["Youwillneverwalkalone" <soarer2@xtra.co.nz>]

boring............................WHS  large profit downgrade due to our
Ocker cooooooousins






----- Original Message -----
From: <tennyson@caverock.net.nz>
To: <sharechat@sharechat.co.nz>
Sent: Thursday, February 26, 2004 11:35 PM
Subject: Re: [sharechat] a cautionary tale?


> Hi Stephen,
>
>
> >
> >> In New Zealand, and to a large extent Australia as well, we are
> >> blessed with having a large number of high yielding investments to
> >> choose from.
> >
> >By "yield" you mean "dividend yield", yes?
> >
>
> Yes
>
> >
> >>With this kind of investment, forecasting growth in future years is
> >>less important than short term forecasting the sustainability of the
> >>current position.
> >
> >Could you clarify what you mean by "sustainability of the current
> >position"? Do you mean "ability to maintain current earnings and
> >dividends".
> >
>
> Not exactly.
>
> I mean the ability to maintain the current dividend *yield*, or in the
rare
> case where the dividend yield is greater than the earnings yield, the
> ability to retain the current earnings yield.
>
> Example.    WRI has a gross dividend yield of 12.5%, based on a
> dividend rate of 11.5cps and a share price of $1.40.    There is a drop
> in earnings and dividend announced, with the annual dividend forecast
> to drop to 8.5c.   At the same time the share price suddenly drops to
> $1.20.   That means a gross dividend return of 10.7%.    That is still a
> good return, and hardly cause for selling the share if income is what
> you want off it.
>
> SNOOPY
>
> --
> Message sent by Snoopy
> on Pegasus Mail version 4.02
> ----------------------------------
> "Q: If you call a dog tail a leg, how many legs does a dog have?"
> "A: Four.  Calling a tail a leg doesn't make it a leg."
>
>
>
> --------------------------------------------------------------------------
--
> To remove yourself from this list, please use the form at
> http://www.sharechat.co.nz/chat/forum/
>
>



----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/