Forum Archive Index - September 2002

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

Hi allan,

> 
>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
> 


I take your point Allan.  Yes you are correct.  I understood the 
money raised via the rights issue was going into rebuilding the 
Northland's Shopping Mall in Christchurch.   With Northlands 
completed, I am sure that KIP will be able to earn a good rate of 
return on this new capital.  In the meantime however, Northlands is 
likely to look a bit like a bombsite.  I'm guessing that for this 
year at least that KIP won't get much return out of that new capital 
while Northlands is in its reconstruction phase.  Hence my original, 
(perhaps slighty pessimistic?) post.

SNOOPY 




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