Forum Archive Index - June 2004

["mick" <mick100@extra.co.nz>]

Risk/reward is very subjective

I think you ,Snoopy have a totally different idea about risk than i do

 

My idea of a high risk company is one such as Scy City

Very liitle shareholders equity,up to their eyeballs in debt

and still running around NZ and Oz buying out casinos ,all with borrowed money.

Would I be right in assuming that you still hold these shares?

 

My idea of a low risk company is one such as CRS / ASX

They have one million ozs of gold in reserves, 20 million cash in the bank,

no debt and are producing 230000 ozs of gold per year

Pays an annual dividend as well.

 

I could name a few more in similar situations as CRS

I suspect you would refer to CRS  as a high risk company Snoopy

I see CRS as a low risk company with high upside potencial (a bargain at todays price)

 

 

Mick