Forum Archive Index - January 2002

["Dick O'Connor" <callme_nz@hotmail.com>]

I think my favourite share at present would have to be the Westpac Trust NZ 
share.

One of the things that irks me most is that if you buy an Au share that 
carries a full dividend imputation there, the Govt here slaps on what is 
tantamount to a surcharge, and you lose a third of the dividend. The WPT 
share got rid of that problem and they deserve   thanks for that…..if only 
more banks and other companies would follow suit.

I realise that on this site we don’t expect people to go into their private 
finances, but in this particular case I think I’ll say how many shares I 
bought and at what price so you will understand why I think this share is so 
good.

When the shares were offered in the latter half of 1999, there was an 
initial payment, in Sept if I remember rightly, of $7.20 followed by a final 
payment of $4.75 in Dec 2000, making a total cost of $11,95 a share, but 
carrying a full dividend from the start as a come-on.

I ordered 500 shares, then went and had another read of the offer 
doccuments, rattled the calculator keys a bit more, liked them a bit more, 
and ordered another $400. Subsequently I bought on market two further lots 
of 100 shares each. The cost of the 1100 shares has averaged out at $12.24 
each.

The capital gain over the appriximately 2yrs 4mths has been a compounding 
rate of around 15-16% per annum. I am also now getting a net dividend yield 
of 6.3%.

It’s a pleasure to read the company reports. The company has a  good feel 
about it, and it’s CEO is now regarded as one of the best in the industry. 
Some Au analysts are saying the banks might not do so well this year.But so 
far this has been a very satisfactory share and it reminds me of what a good 
investment is supposed to be like.

As usual, of course, how well you do with a share depends very largely on 
the price you buy in at.

Thanks to those who have contributed to this discussion. I didn’t pick a 
very good time, I’m afraid,  because obviously a number of people have been 
on holiday. Maybe there will be more coming back now. If there are, I would 
strongly urge as many as possible to tell us their favoutites – the more who 
contribute, the more useful the exercise will be. And  it might even lead on 
to other things......Cheers




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