Forum Archive Index - November 2000

["Wayne McDonald" <wayne.mcd@voyager.co.nz>]

Brokers have been talking $8 - $8.50 for this stock since early this year (I
can recall broker commentary on this stock on the early morning TV business
show during April/early May to this effect).

Brian Gaynor published a less than supportive article in the NZH 3 June
regarding the capital notes issue of $150 mil, and the lack of discipline
funds such as these are subjected to vs equity or debt, with noteholders
relatively powerless.There are several examples quoted in the article of
other companies that have gone down the path of capital notes, and the
organising brokers involved - again less than supportive.

On the plus side Jenny Ruth in the Independent 17 May identified SKC at
$6.00, and the markets failure to recognise value. There is little doubt SKC
has a good record of earnings growth, and dividend yield. The article also
tagged CEN at $2.51 as value.

As far as licences go, does it matter? - limited market in NZ + SKC gaining
presence in AUS - Canbet, and Adelaide Casino. Queenstown to open next month
(JV), and still with Hamilton decision to contest? I don't think there is a
lot of room for more casinos in NZ, other than Wellington.

As for your views on casinos - I have never invested in anything that I
didn't have some liking for. Don't particularly like the Sky City
environment, although Christchurch can make for a good night. However, have
attended at least two functions/conferences at Sky City and always well
catered.

What to do? Bought SKC at 5.88, and sold at 7.60 today + picked up dividend
along the way - wife keeps nagging about mortgage so funds to retire debt.
You can never go wrong taking profits.

Also hold CEN, and am kicking myself for not selling at + $3.00 last week.
Again brokers have been talking $3.20 + for this stock since  around
April/May. C'mon Eddison Mission, make a bid while the currecy is still
weak! Again bought near lows.

Sadly I manage to make as many botched decisions, and buy into too much hype
to counter my genuinely balanced decisions - although learning, and having
fun along the way (usually).

Regards,
Wayne


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