Forum Archive Index - November 2001

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

Introduction:

This stock was recommended to posters, when it was $ 1.73 on 18 Nov.2000.

On 23 April, 2001, the following share price predictions were made:

Date 20/4/01--20/2/02--20/12/02--Oct/Nov.03
Price $4.40---- 5.76------ 7.55-------9.89
Note: In practice, there won't be an equal progression and hence, prices will vary.
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On 2 August the following profit projections were made:

Current price: $4.50. Shares: 94.6 mill.

Year to June 30----2001-----2002------2003
Net Profit(mill)-----9.3(A)----16.9(F)----24.4(F)

E/S (cents):---------9.8-------17.9-------25.8
P/E:-----------------46--------25---------17

Div.(cents):---------6.5-------11.5--------16.5
Div, yield(%):-------1.4--------2.6---------3.7

Notes: A large brokerage has recommended that clients move from BCH/DAD to CLH.
The original holders released some 12 mill.of the 55 mill. shares held, some time ago.

At this stage the predicted price curve - see: Introduction - ought to be somewhat flatter, say $ 6.30 in August 2002 and $9.26 in Aug. 2003 ( based on a P/E of 35 ).

In practice, there won't be an equal progression and these prices may vary.

Much will depend on any release of more original Holders' shares and corporate activity.

Should the DAD/BCH result to 30 June year be found wanting (massive $400/500 mill. goodwill), then investors may prefer CLH before and after that result. That may result in higher prices and/or a greater stability in pricing.

Gerry
Disclaimer: These predictions cannot be guaranteed. Readers are not asked to buy, hold or sell shares. To do so will be at their own risk.

 

Web site: http://www.collectionhouse.com.au/