Forum Archive Index - March 2000

[Derek <dariusz@ihug.co.nz>]

I have question for investors with good theoretical and fundamental background.
I do not looking for market speculation in this case. Let's ignore
this factor.

If you have 2 companies in same business field with fundamentals as below:

Company A:

             Total Issue :   90,418,791
 
             Full Year Profit :    -13,497,702.14 (NZD)

             Earnings/Share:    -98.7250 cents

             Price/Earnings Ratio:    -0.3950

             NTA/Share:      57.3344 (NZD) cents

             Dividend/Share   0.0000 (NZD) cents

             Dividend Yield:    0.0%

The share price is currently  very close to 19 months high.

Company B:

            Total Issue:   115,532,071

             Full Year Profit:   3,827,000.00 (NZD)

             Earnings/Share:  3.0355 cents

             Price/Earnings Ratio: 9.5536

             NTA/Share:   45.9898 (NZD) cents

             Dividend/Share:   0.0000 (NZD) cents

             Dividend Yield:     0.0%

The share price is at least 15 years  low.
 

Just base on fundamentals. Which company will be your choice for medium to long term investment?
Could you make comment  on your decision?

Regards,
Derek