Forum Archive Index - November 2000

["P Maiden" <pmaiden@xtra.co.nz>]

Good day HH - Agree that it is good to see some honesty and realism in announcements and reports from companies. At least it means one can make some decisions based on something of substance.

 

Doesn't help those who went along with the earlier expectations thouigh. However as you say stick to it.

 

When THL started get mentioned on this site as a good prospect I did my own research. To date I have not bought in. To get the value, relative to my risk assessment, I want over time will I get in if they ever drift down to 150-160.

 

Last year wasn't a bad one for them. However $14.8M earnings on shareholders funds of $172M and borrowings of $146M wasn't that great.

 

High ongoing levels of interest, depreciation and amortisation makes revenue growth paramount to value creation. However the more you read the more variables to this happening come to light.

 

Any potential investors thinking current price is attractive against reported net asset backing of 187 cents/share (last annual report) should do a through analysis of balance sheet (IMHO)

 

Price getting down to attractive levels. If in stay in - no real reason to get out.

 

Peter