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From: | "G Stolwyk" <stolwyk@wave.co.nz> |
Date: | Thu, 8 Feb 2001 19:52:36 +1300 |
Philip,
SKC < www.skycity.co.nz > is one of my picks in
the " Working at the coal face " series.
Reasons for the rise:
1. The stock has been undervalued for years
and the market finally realizes its worth. Actually its price
should be close to that of Tabcorp-
$A10.40!
2. The Hamilton casino can now be
built.
3.The court case re Hamilton's license has
benefitted SKC: there won't be another casino built in NZ for years to
come!
4. Reports indicate that SKC is making good
progress with their Adelaide casino: Australians are very keen to work with
SKC!
5.It originally had a 6.8% stake in Canbet, an
online Australian betting company and increased it to a third last
December.
Canbet just reported a large increase in turnover
and suggested that it will soon be able to report a profit. Betting on US sports
is their mainstay.
6. SKC has a high dividend
yield coupled with good growth prospects.
It also has an excellent Board who's
abilities mirror those needed!
7. It is now heavily tipped by brokers: There are
not that many desirable investments leftl
8. Tourist numbers have been increasing at a high
rate. The lower dollar would also induce locals to spend their
holidays in NZ.
Finally, SKC will report on Feb.19; they will have
some heavy borrowing due to expansion.
There will be some money spent in Adelaide but
normally their cashflow is very strong!
They now have a high but well planned
expenditure on many projects: Spend first, then derive the
benefits!
Gerry
( foundation shareholder )
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