Forum Archive Index - May 2002

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi Brian,
>
> 
>Again the fundamentals have not changed and this might be a stock
>that has been unfairly treated by the crowd panic centred around
>insurance cos and the Enron fallout. Looking from a long term
>perspective at an entry point based around a break through the long
>term downtrend.
> 
>Intriguing! Any comments?
> 


Last week you asked for some fundamentalist comment on CLI.   I 
haven't studied the company in detail and won't have time to do so 
for a while.  My superficial concern with CLI is its status as a 
'second line' financial share.

CLI doesn't have the consumer retail base of the other big 4 Aussie 
banks.   It may be sitting on a P/E of 5 or so, but so what?   The 
'E' figure is based on *last* years earnings.   How much of that 
earning stream is due to one off corporate deals on a rampant Wall 
Street?   What is to stop the bigger banks coming in and touting for 
loans to be rolled over at a lower price, cutting out CLI completely?

I don't wish to sound negative.  I'm interested in the answers to 
these questions which I haven't researched.  But until I understand 
the business a bit better, I wouldn't be jumping into CLI at any 
price.  L'll stick to my bigger banks thanks.

SNOOPY

discl: hold ANZ, WPT



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