Forum Archive Index - March 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

 

Readers,

 

Reference date: March 1. I referred to 3 Key stocks which could be of interest to investors:

 

AIA : A solid business and a monopoly. Will benefit from any interest cuts. Heavy cashflows!

It is possible that because of the f. and m. in Europe, some tourists may be inclined to visit NZ instead!

Site: < www.auckland-airport.co.nz >  Price: $NZ 3.58.

 

 

LACO: A duopoly. Current price of $A 3.05 is rather low considering that LAC has raised $400 mill. and is waiting for developments. Will benefit from interest rate cuts.

Site: < www.lang.com.au >

 

 

CLH: The company has moved into " billing " and has plenty of work. It is well connected.

It is a defensive stock as is Baycorp. Price: $A 3.58.

Site: < www.collectionhouse.com.au >   

 

And now, an additional stock:

 

QBE. I mentioned before that a good result will add this stock to the " most favoured " list. Price: $A 10.78.

 

Today's announcement is a good one: Profit to Dec. 31 has increased by 36% !The next report will include the full result of " Limit " and the HIH joint venture.

 

 Obviously, they will be looking for more companies " in distress "!

 

Several insurance companies could not finance their liabilities as a result of heavy competition and increasing frequency of disasters: there was a shake-out and any  remaining well-run companies can now expect increasing profits.

 

The current new powerful insurance cycle will assist QBE as they are very astute investors as well!

 

QBE can now increase premiums and try to cover the difficult to assess risks of increasing frequency and size of disasters.

Web site: < www.qbe.com.au >

 

Gerry

( Holds these stocks ) 

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Disclaimer.

Readers are not asked to buy, hold or sell any shares.To do so will be at their own risk. Selections are based on my current opinion.