Forum Archive Index - September 2002

["allan potts" <pottsallan@hotmail.com>]

Dear Hi Trader & Snoopy,

Snoopy if "all things were equal" after the rights offering the yield would 
still be 10% because 10% would be earned on the additional monies raised -- 
this of course is unlikely.  It may be more or less depending upon how 
wisely they employ the funds.  In order for the yield to drop from 10% to 
the 8.6% you site the additional money raised would have to be squandered or 
stored in a shoe box.  Hopefully management of KIP has a little more on the 
ball than this.

Disc. hold KIP

Allan


>From: "tennyson@caverock.net.nz" <tennyson@caverock.net.nz>
>Reply-To: sharechat@sharechat.co.nz
>To: sharechat@sharechat.co.nz
>Subject: Re: [sharechat] KIP
>Date: Wed, 11 Sep 2002 08:49:13 +0000
>
>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."
>
>
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