Forum Archive Index - September 2002

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

Hi trader 100,
 
>
>
>I would be interested in peoples (especially Snoopy's) views on KIP
>from a fundamental perspective.  In this low interest rate
>environment it strikes me as an attractive proposition.  I would
>also expect property values to benefit from the new PTA and the
>softer stance on inflation.
> 
> 


I was kind of hoping your post might be the cue for the return of 
Hugh!  I think he follows KIP more closely than I do.  The 
only point I would make is that because of the recent 1:6 rights 
issue some of the company statistics may appear better than they 
really are.

For example I think the shares are trading on a dividend yield of 
around 10% in most newspapers.  If we take into account the extra 
shares on issue, the same profit must be shared among more 
shares.   So going forward, all other things being equal, the yield 
is likely to be only:

10% x 6/(6+1) = 8.6%

Of course the key phrase here is 'all other things being equal'.  
Perhaps others who are more familiar with the property market than me 
would like to comment?

SNOOPY



---------------------------------
Message sent by Snoopy 
e-mail  tennyson@caverock.net.nz
on Pegasus Mail version 2.55
----------------------------------
"Q: If you call a dog tail a leg, how many legs does a dog have?"
"A: Four.  Calling a tail a leg doesn't make it a leg."


----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/