Forum Archive Index - May 2000

["ritchie marr" <ritchie_marr@hotmail.com>]

I bought into this stock a few years ago. It was easy to accumulate stock, 
but once I had 100,000 and decided to sell it was impossible if I was in any 
form of a hurry. I in fact was exceptionally lucky to be able to move the 
stock at 12-15c over a two week period. The price is attractive now, and I 
am interested in getting back in but will definitely be in for the long term 
next time. The company is 82% owned by Emerald Capital ltd, with around 90% 
held by the top 20 shareholders. So liquidity is a major problem. Nta is 11c 
based on last figures, and has been reducing debt with cashflow, insurance 
payout from fire, and profits. Main focus over the last few years was to add 
one new attraction to Rainbows end every year with profits, ( around $1m pa 
), and to make the Christchurch Gondala profitable. Both have been achieved, 
somewhat just. Net profit on paper looks tiny, but when you take into 
consideration debt reduction and reinvestment back into company, future 
prospects should improve considerably.

Turnover of Rainbows end will not dramatically improve without a sizeable 
increase in population,(not likely to happen over night), however with the 
low debt the company is well placed to expand on the land they own at 
Rainbows end which is only 26% utilised. Equally they may choose to expand 
out beyond the two assets they currently have now. Enhancing shareholder 
value is always talked about at their meetings, but has had little advance 
over the last few years. My pick is that something will materialise at this 
years AGM, even if it is simply a conclusion of direction.
Ritchie


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