Forum Archive Index - August 2000

["Warner Lamb" <cloud9@i4free.co.nz>]

Hi laura, My broker had a strong buy @ A $8.38 back in March so I think the
best short term gains are done and price has caught up. My research site has
a Val (conservative) $10.51 but maintain a buy (these guys are independent-
no holding)Price $10.14

      98A    99A    00F    01F
EPS   57.3   64.8   75.4   75.5
DIV   41     45     50     53
PE    17.7   15.6   13.4   13.4
Y%    4.0    4.4    4.9    5.2

CAP 3.5b Aus
Management are diversifying and looking for best returns on capital as NSW
and VIC business has been set allowable returns on assets NSW 7.75% pre-tax/
VIC draft tougher than market expected but not out yet.
The spin off is an example of management trying to get better returns by
freeing up $754m but still hold a 30% stake.(Aus Pipeline Trust)
Acquisitions that are possible include( from freed capital)   SA Terra gas
(wholesaler)  WA Alinta Gas and NZ opportunities.
They have an investment in Chile with 20000 customers and looking for 50000.
This is a very solid co. with little downside now figures are out. At
current price, The upside is too small for me but would be a good long term
hold with reasonable div. The slowing of EPS growth in F01 puts me off.
Potential upside is if the 5% restriction is repealed..Then you could see a
small rally.
R
Warner


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