Forum Archive Index - May 2000

["Brent" <brent-g@ihug.co.nz>]

The notes are the most expensive borrowing TTP has. 9.5% compared to their
other borrowings, which average around 7.5%.

They had around $50m in the  bank at last report, so this a good use of it.

Bad news is they have borrowings over $600m, some fixed, but most locked to
bank rates.  Sooner or later this will cost them.

Their main problems seem to be falling property values. They are required to
set these off against trading profits. Last year this was $25m. As they own
so much property, $1.2b, this represents  a decline in property values of
only 2%.

This is likely to continue or even increase (Thinking about the completion
of the Sun Alliance building and AMP's proposed office tower in the cbd.)
TTP also has a vacant building site in the cbd ad are mooting an office
tower.

As well they are still selling off some of the non performers in provincial
areas.
In their last  report they proudly stated " $41.5m of non core property sold
and settled".  They are very quiet about losing nearly $6m on these sales.

Finally, with 600m shares and notes issued, they need to make $6m tax paid
profit for earnings of 1 cps.
For the share price to get back to say 50c, we would need to see a tpp of  6
or 7 cps.  That is  $35 to 40m.

I won't be holding my breath.

Cheers

>
>
> -----------------------------------
> Derek Watt
> http://www.blackrobin.com
> -----------------------------------
>
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