Forum Archive Index - January 2001

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Re: [sharechat] NUF to come right

From:	"Douglas Stewart" <dougstew@ihug.co.nz>
Date:	Fri, 5 Jan 2001 09:17:46 +1300

Hullo,

I've been following and enjoying sharechat for several months.

I've just had a quick glance at the NUF 2000 annual report.

My concern about investing in this company would be the quality of its earnings, a large part of which seem to consist of asset sales.

In 1999 pre-tax earnings were A$ 79.6 million but asset sales amounted to $107.5 million.

In 2000 pre-tax earnings (for 14 months) were A$ 77.0 million but asset sales amounted to $50.4 million.

The p/e on earnings ignoring asset sales (which cannot continue indefinitely) looks very much less attractive.

Perhaps this explains the "low" shareprice?

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