Forum Archive Index - May 2000

["Wedde, John" <john.wedde@cit.ac.nz>]

Many thanks for that info. Ritchie

                -----Original Message-----
                From:   ritchie marr [mailto:ritchie_marr@hotmail.com]
                Sent:   Monday, 15 May 2000 14:25
                To:     sharechat@sharechat.co.nz
                Subject:        Re: [sharechat] NZ Experience

                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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