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Re: [sharechat] Sky City


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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