Forum Archive Index - September 2001

[Stott <bincqs@ihug.co.nz>]

While I appreciate that most people are concerned with Air NZ at the
moment, I'd like to some information concerning Sky City Ltd. (SKC).

I'm a young investor and I'm seeking value (looking long term).  I've done
a pretty thorough analysis of the company, and although I personally don't
find the Auckland casino (itself) an overly appealing place to go, the
numbers are too attractive to not invest.

I was wondering if anyone has been to the Queenstown Casino recently?  If
so, could they give a quick review (claudius gave a fantastic review of the
Adelaide casino a while back:
http://sha.sharechat.co.nz/archives/2001/07/msg00223.shtml ).  Is it a nice
place to go?  Good location?  Was there many people?

Also if anyone has information on the Argentina/Force angle, I'd appreciate
it (any newspaper/magazine references?).

A couple of friends do contract work within the Auckland facility and have
suggested that the company is grossly inefficient.  This is not good, but
again: the numbers at too attractive to not invest.

Snoopy's analysis of the company has been excellent
( http://sha.sharechat.co.nz/cgi-bin/msgboards/post_show.pl?id=1708 ), but
I think Gerry is right when he suggests that the company is interest
sensitive ( http://sha.sharechat.co.nz/archives/2001/01/msg00031.shtml )
and I wonder whether a global downturn would hurt the company.  This plus a
down turn in tourism (the terrorist thing and AIRVA thing) could bring the
profits and share price down.  There is quite a bit of debt there.

The entry price at the moment ($10.20) is fair (not cheap, not excessive).
PE of 11 and dividend yield of 8.5% (love the DRIP scheme they've
implemented).

Any and all thoughts would be appreciated (Gerry and Snoopy?).

Simon



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