Forum Archive Index - October 2001

["geoff_julie" <gk_jawalker@paradise.net.nz>]

 

hi Greg

 

EBO a typical NZ small company - not analysed by brokers, generally ignored by the market and trades on tiny volumes.  Unlike many of our big companies, it makes a profit!

 

Today's  statement from the AGM was reassuring to shareholders (me!).  How many companies are not affected by recent world events (cynically, how many are going to blame it for another year of dismal results??)?  Interesting note at the bottom of the statement -  an investment of $1,000 1991 would be now worth approx. $25,000 today.  Not a BCH but better than a investment in BIL, Fletchers, CAH, etc.  Obviously historic returns are no indication or guarantee of future returns (to quote several fund managers this year...) but they do, as they say, produce the goods.  I've had a quick browse through their latest annual report and while the result has been generally flat, it does appear to be moving upwards after minor difficulties amalgamating recent purchases.  What I like is the policy of NOT rushing out and buying every business in Australia that moves, crawls or slivers.  How many NZ companies have the Management and a Board of Directors that insist on bedding down recently acquired businesses before embarking on further acquisitions?  Music to my ears!  Slowly and surely beats buy big and bust!

 

A lesson that several other NZ companies could and should learn?

 

 

Regards

 

Geoff Walker

disc.  hold EBO