Forum Archive Index - June 2000

["nick" <acummin@es.co.nz>]

 

Fair comments Nick, although they only justify the companies that the rules produced - they don't justify the rules which may lead you to leave out some companies that you should include in your bunch of "possibles".

         

              True, but i think you have to concentrate on a small area, else it becomes confusing.

    There are probably hundreds if not thousands of possibles around the world.

       Bound to be a few babies thrown out with the bathwater

 

            nick

----- Original Message -----

From: nick

To: sharechat@sharechat.co.nz

Sent: Monday, June 05, 2000 2:02 PM

Subject: Re: [sharechat] 5 POINT PLAN

                 By picking out undervalued companies, i expect capital growth and income.

      The reasons the dividends are so high is because the share price is so low!!.

      Take force corp , paying out 14.5% in income.  When the share price was 1.00 then

  the income was only about 6%.

                A company such as restaurant brands pays out a large proportion of earnings

back to shareholders, once the restaurants are up and running what else do they

have to spend it on?.   The good income with restaurant brands is likely to continue,

it is backed by good strong cashflows.  There is a limit to how much a company can

grow in new zealand, the place is already saturated with kfc and pizza hut, so why not give us

some of our money back !!.

         The stockmarket in this country has gone no where this year, but the nice

dividend yields are often overlooked, over time they can be a big growth element in a portfolio.

      In a raging bull market the importance of dividends is reduced, but

during quiet periods income stocks come into their own.

 

 nick