Forum Archive Index - October 2001

["Richard Hooper" <hoop@ihug.co.nz>]

yes, no brainer buy .....but....is it ?........is it me or what?....I can't
get my head around why they bought Force...is there a long term objective
here..? ..if so what is it.. ?...Entertainment is a very broard subject
....so much so that I can't see any common thread between films and
gambling....Wasn't buying Force an unnecessary risk ?
Hoop
Disc    bought /sold  looking to buy again.

----- Original Message -----
From: "i_claudius" <i_claudius@xtra.co.nz>
To: <sharechat@sharechat.co.nz>
Sent: Friday, September 28, 2001 2:53 PM
Subject: Re: Re: Re: [sharechat] SKC thoughts please


> 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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