Forum Archive Index - September 2002

["David Renwick" <david.renwick@paradise.net.nz>]

Hi Holden,

 

Beats me how they can continue paying such a high divvy c/w earnings. Borrow to pay the div? I haven't read the last report. The market is realising the potential loss of value as it's been

in a steady downtrend for the past 5 years and the divvy is reducing too. The high p/e I could justify if the growth was phenomenal but is it? High p/e more acceptable in a bull market, but we ain't.  Some successful traders don't attempt to rationalise - they just react. This stock is in a short, medium & long-term downtrend. Check it out again before cum dividend. See how the price/chart had little falls then rises every 6 months fot the last 4 years. Consider buying it on weakness but it's hard to pick that when it's trend is down, down, down. Some might buy when the down trend breaks. There is a support at $0.57 and some good volume today at $0.57 - might be chartist!

Give me some feedback too.