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Re: [sharechat] What to do with WRI cash

From: "" <>
Date: Thu, 20 May 2004 23:24:20 +1200

Hi Karyn,
>Since I have most of my NZ portfolio invested in high yield stocks, I
>have been considering the same questions.  If I sell, where does the
>money go to? 
>Having looked at the market, I figured out that WRI is not the best
>performing stock for either yield or growth.

Why not?    The re-emergence of the finance division looks good for 
future profitability.  That is not reflected in the WRI share price.    And 
the base yield of 9% is still good.

>Some of the best dividend yields on the market belong to PGG, RNS 
>FPA.  All have pretty good capital growth prospects as well - PGG 
>increased earnings as industry prospects improve, 

Be careful.   Current yield on PGG represents 18months of earnings, 
not 12.

>RNS as IT investment cranks up again, 

A bit of a niche player, aren't they?  How much competitive pressure 
can they stand really?

>and FPA from the declining $NZ. 

A company I have never studied in detail.  I have always thought well 
of them though.

>I also like THL for its dividend yield and growth prospects.

That's precisely why I invested in Air New Zealand.     I think THL 
suffers from the same malaise.

>All 4 of the above have been winners for me, whereas WRI is the dog
>having bought in just before the share price did its deep sea diving
>act :-(

Diving from $1.45 to $1.40 is a deep sea diving act?

> So I want to sell, 

Why?  If you thought it was good buying at $1.45, how is it now poor 
buying at $1.40?

>but the independent valuation has made me query at
> what price? Do I hold out for a better offer? 

If you want to sell for fair value, I guess so.

>Is one likely to come?

If Norgate does a wobbly and throws his blocks out of the cot that's not 
the end of the game Karyn.  It's just the beginning....


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