Forum Archive Index - September 2000

["Mark Hubbard" <mhubbard@es.co.nz>]

On 2 Sep 2000, at 17:15, rebecca bibby wrote:


> P.S.  Reliable sources inform me RBD is a bargain so get in before others do. 
> Emails of support strongly advised and welcomed.    


RBD is a great cash cow, which almost always seems to trade at 
a discount to its true worth (which its currently doing). I suspect 
the major trouble with it is, although it has lovely cashflows you 
can bank on, its not really IMO a growth stock. There is not that 
many ways it can substantially increase revenues - and it is a pure 
NZ domestic operator. Thus nothing 'spectacular' will happen to its 
price.

The last time I purchased it I sold half my shareholding at $1.64 for 
a nice gain (treating that part like a trading stock). The other half I 
have kept simply for its dividend, as its a great yield. Also good is 
the dividend reinvestment plan. I'll let my remaining shareholding 
just tick way, with my total shareholding rising with each dividend. 
Thus, my opinion would be, its not a stock you'll get rich quickly on 
by any means, but its lower risk (compared to growth stocks), and 
good yield, might give good balance for a lifelong portfolio.

My 2 cents worth.

Cheers Mark (Taking a bit of a bath on ASX at the moment).

Discl:

Hold: NZSE: RBD, APT, RYM, NUF, CGB (have been building in 
this).  ASX: NIX (will build when I see what price settles on), CSB, 
BRZ (a big disappointment to date), UCR, and yes, still those WAL.

----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
http://www.netbroker.co.nz/        Trade on Credit, Low Brokerage. Join now.
----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/forum.shtml.