Forum Archive Index - April 2000

["vincent.wang" <vincent.wang@xtra.co.nz>]

Someone mentioned POA this morning.  I am surprised to see the share price of POA has dropped to $4.20.  I reckon this stock is very much oversold.  POA is one of very few companies in N.Z. which consistently achieve profit growth over the years.

 

The recent contract labour dispute should be a short term problem.  And POT's competition is limited due to its in-land port's transportation capability.  POA has its geographic advantage, which is closer to the large Auckland market, in the longer term, I expect POA to grow further.

 

I have done some simple ratio analysis for POA as below:

 

                                   1989     1999     compound

                                                             growth 

                                                              rate(%)

 

revenue(k)                       110,027 153,800     3%

 

NAT(k)                               8,621   32,824    13%

 

equity growth(k)                  6,035   69,813     25%

 

EPS growth(c)                          5.4       27.9   17% 

 

dividend growth(c)                     1.3        18.0  25%

 

note:EPS figures have been adjusted to exclude abnormal income.

 

The compound growth rate is rather rough, I did not do the extrapolation to get the decimals.

 

The only minor concern would be on the revenue growth which is only 3%, but this is roughly in line with our economy growth.  

 

I can't find many companies having such solid growth trend in N.Z.  Actually, infrastructure and utilities sector is the only sector I could identify as growth sector in N.Z.

 

Regards,

 

Vincent Wang

 

disclosure: hold POA