Forum Archive Index - April 2000

[richard hermans <r.m.hermans@xtra.co.nz>]

ril wrote:
> 
> The problem with WPTCA I think is that it can not be arbitraged with the
> Australian share. Thus the NZ listing can not be shunted and sold in
> Australia. This has meant that the price has lagged the Australian
> equivalent after the appropriate adjustments.
> 
> I believe the unfortunate structure was necessary for tax reasons.
> 
> Secondly, rising interest rates are negative for intermediaries with
> regard to profitability.
> 
> Whether to hold or sell I couldn't say except that interest rates are
> pegged to increase this year unless there is a crash of course. The
> yield is attractive.
> 
> Tower is an unusual share. GPG had a crack at it and it appears that the
> current directorship are enthusiastic about their jobs rather than the
> benefit to shareholders. It is a potential takeover target for one of
> the foreign banks but I suspect that they are to some degree concerned
> about the self serving directors and senior managers frustrating a
> takeover.
> 
> Also, banks in general are having a crack at insurance themselves. So
> called disintermediation (a nice long word). However, a friend of mine
> made a token phone study of banks role in the insurance sector in your
> country which revealed that they are overpriced and rather poor on
> service. Insurance can be quite complicated. Banks often insist that
> people take out death insurance when getting a mortgage.
> 
> So who knows. For my money a proper insurance broker is the go. But
> banks have quite a bit of leverage in flogging insurance.
> 
> Something to think about IMHO.
> 
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Thanks for your comments Ril;Margie

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