Forum Archive Index - October 2000

["Philip Robinson" <robph639@student.otago.ac.nz>]

Greetings,

To update everyone, we are doing a little analysis and using some of the
ideals that people like Buffet espoused and then applying them to the New
Zealand NZSE40 to start with. We can then look at some other indicators
about what makes a good stock and then move to create a list. Most can be
found that this link:

http://sharechat.co.nz/archives/current/msg00173.shtml

I would like to make a point that this is just a starting point for the
disscusion and analysis, the results are below and it must be said that have
have scarce knowledge about some of the companies here and I then had to use
resources like the Datex Book and Stockwatch, and then my general knowledge.

The good thing is that if you feel a different way about a company on the
list on any of the criteria you can either get the sheet from me and change
the number or send an e-mail to me and I will re-compute. To all those with
Microsoft Excel you are welcome to get the sheet off me and I would
recommend it, so you can see the cut off points and the way in which I put
the index together. I haven't attached it because to those not interested or
following the thread it would be a annoyance.

I hope that this can be the start of some good disscusion about a portfolio
for tracking or participation, maybe even our own index, but I must stress
that this is only a start I would like to suggest that we now overlay all
the PEG and PE ratios beside the stocks and see what relationship the index
score has to these other important indicators of a stocks value.

Highlights include Baycorp, Frucor, Montana taking out the top three spots.
With TransTasman Properties, Contact and Fletcher Building rounding out the
bottom of the list.

Enjoy,

Phil


BCH 31
FRU 27
MON 27
GPG 25
WHS 25
AMP 24
POT 24
AIA 24
TWR 24
IFT 24
ANZ 23
UNL 23
SKY 23
AXA 23
TEL 23
NPX 22
INL 22
FAP 22
POA 22
ADV 22
SKC 21
AIRVB 21
AIRVA 21
SAN 21
TLS 21
LNN 20
WAM 20
BRY 20
NUF 19
TRH 19
APT 18
KIP 18
WPTCA 18
STU 18
TPW 18
CAH 18
FEG 17
TLT 17
NCH 17
FFS 16
TTP 16
CEN 15
FLB 14

Notes:

It has to be noted that the principles do not fit well with investment
companies like GPG or BRY.

Companies like WPTCA, ANZ, AXA and AMP have different yardsticks for %Equity
ratings, so I have given them all a 2 on this.

TWR and WPTCA could not be evaluated properly due to scarce financial
information.

The criteria about will the retained earning increase the value of the
company. I see little reason why they should not and so everyone got a
three.

I just had to go on feeling and the knowledge I have about each company to
get a feeling on whether a company could adjust prices to inflation.



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