Forum Archive Index - August 2001

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

 

 Reference: Yesterday's post " CLH...Outlook ".

 

Stockness, 2.51 pm, an interview with the CEO of DAD.

DAD predicts a combined profit of about $ A 32 after tax.

 

And a combined profit of about $ A 38.4 mill is projected to June 30, 2002. But there will be extra costs. Say a profit of $ A 36 mill. before abnormals. 

 

There are about 222 mill. shares. E/S= 16.2 cents. P/E= about 45, based on shareprice of about $ A  7.30. This is before abnormals.

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They are reporting a high $ 400- 500 mill. intangibles to be written off over 20 years or say $ 22 mill / year.

 

Deducting this from the $ A 36 mill. profit leaves $ A 14 mill or 6.3 cents/share. The P/E will be some 115 !!! after writing off a portion of intangibles.

 

DAD does mention that the combined entity has little debt.

 

These are approximate numbers only but are good enough to be used.

 

The combined entity is fortunate to be backed by Baycorp's high international standing and to be in Australia's top 70 after the merger. Indexed Funds will need to take up some of the stock.    

 

Gerry