Forum Archive Index - September 2002

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

Holden,

 

Some investors don't try to rationalise others' behaviour - they just react to the share price and the trend. Anything is possible.

I can understand a high p/e in a stock that has outstanding growth or in a bull market but this?  As you've said the div is good but without looking at the report I suggest that it's coming from borrowings as the EPS is low.

The trend is down, down, down in whichever time span you look at it but it has support at $0.57 (where it finished today and on excellent volume - could be a chartist buying!)

I think that the chart shows that every 6 months for the past 4-5 years there has been a temporary dip in the price around div time. Conclude what you wish from that.

What do you think about buying now at support or waiting for the trendline break - which may never come. Will the stock lose 10% value before the next 10% div? What do you reckon - I'm here to discuss & learn too.