Forum Archive Index - March 2000

["hugh webber" <hugh.webber@clear.net.nz>]

However, the Press on p 24 (Sat 4 march) "Warehouse Shares
Riches" calculates the Warehouse "has a gross yield of 7.4%
for the 6 month period or 15.4% annualised".
Probably vaildates the Buffett approach that a good fast growing
coy is actually cheaper despite a high share price than a static
slow/no growth one.

regards,
Hugh 

----------
> From: Nigel McCarter <n.mccarter@clear.net.nz>
> To: sharechat@sharechat.co.nz
> Subject: 
> Date: Friday, 3 March 2000 9:23
> 
> Comparison of Restaurant Brands (RBD) and Advantage (ADV)
> 
> Given the current debate, I thought it might be fun to contrast these
two.
> Advantage figures are estimates based on doubling the Operating statement
> for the half year. RBD is based on the latest annual report.  Dollar
> figures in 000s
> 
> 
> 
> Measure                                                       RBD     ADV
> Current Share Price                                   $1.34   $4.90
> Share price change since November 1999                $1.34   $2.30
>                                                       0%      113%
> Revenue                                               217,037 57,770
> After Tax Profit                                      13,007          4,200
> Profit Margin                                         6.0 %   7.3 %
> EPS (cents per share)                         15.3    8.8
> PE ratio                                              8.8     54.4
> PS ratio                                              0.5     4.0
> Return on Total assets                                14.6%   -
> Return on Shareholders equity                 47.6    17.8
> Dividends                                             7.9 %   0%
> Imputation                                            33%     0%
> Return less tax                                       7.9%    79%
> 
> 
> The two spreadsheets are my standard method of looking at company
finances.
>  Try playing around with the left hand columns, for share price . revenue
> or profits and see what happens to the PE, PS and total return.  At
current
> share prices, profit has to increase to $12,000,000 before the PE ratio
> drops to under 20 at current price levels.  (the market average for value
> companies) and  Revenue has to treble before the PS ratio drops below 2.0
> which is about average for well run companies with good growth prospects.
> 
> Which just about illustrates the difference between short term trading
for
> capital gain, and long term holding for value.  Sooner or later, the
share
> prices of RBD will rise because it is growing, but when?  Your guess is
as
> good as mine.
> 
> Nigel McCarter
> 
> Shorten the Odds 
> 
> Box 23 019 Hamilton
> Phone 64 7 858 2429 Fax 64 858 2689
> Mobile 025 274 8560
> 
>
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