Forum Archive Index - September 2001

["i_claudius" <i_claudius@xtra.co.nz>]

For me,SKC is one of few no brainer buys available in NZ.
Auckland has the best operating metrics for any casino in the world.
The group has a beautiful mix of high current earnings,high div
yield,recurring revenues and a growth profile to die for.
The main earners are Auckland and Adelaide.Neither are dependent on junket
tour business volume making the bulk of their money from a local grind and
so are not really exposed to any tourism downturn.Hence good security of
earnings.Adelaide will contribute to 2002 earnings growth
significantly.Hamilton and the Auckland expansion will come on stream in the
following year.Queenstown will take a hit but it's so small you can discount
that.
I'd expect to see 10 to 15% earnings and div growth  minimum in 2002.
This would give you around 9% gross div on $12.00.Compare that to the OCR at
5.25% with further cuts very posssible.

Canbet?The key guy there,Michael Tomeny,has bought 1.5 million shares since
mid August taking advantage of the window available for director's
purchases.The ultimate(legal)inside trade.

Force?Not sure but a minor event relevant to SKC's total business.Should
cover it's cost of capital at least in the near/medium term.

Sharesplit?Would be a nice bonus if it came but won't matter if it doesn't.

Finally, because it's so well set up for short and long term performance AND
is still undervalued by the market at less that $13,it remains a tempting
takeover target.

Bullish? You bet!

Discl:long


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