Forum Archive Index - January 2003

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

We've had a good diverse range of suggestions so far which I've no 
doubt will give 'sharechat' subscribers something to think about.  I 
notice that one or two of you are bending the rules and naming more 
than one share.  Tut tut!  But please don't stop sending in your 
'entries'.

The 'one share only' rule was put in to make you really think about 
the share you pick.  It may sound like an easy request - pick 
one 'favourite' Aussie share - but I have found it quite difficult.  
Selecting just one over all others is a hard thing to justify.

However, after sleeping on it for a couple of nights I have made my 
own pick.

The particular share I have chosen is:

1/ A substantial player in their chosen market.

2/ Has a five year unbroken record of solid profit growth.

3/ Has been able to consistently deliver a return on shareholders 
equity greater than 15% per year.

4/  Has an ability to raise margins at a rate above inflation.

(readers familiar with the focus investment group will recognise 
these four characteristics as the initial screening rules for the 
focus investment group.)

AND 

5/ has such a good yield that if I were to list it in my New Zealand 
'income' portfolio it would not be out of place.

Finally, despite the good record above, the market has punished it a 
bit in FY2002 making it exceptional value.

When you put all of those factors together, how could it not be my 
selection?

So what is it?  I'm not going to tell you - yet!  I'm hoping some 
super sleuth out there will be able to guess what it is, or even 
better, guess something that fulfils all the criteria above and is 
different to the share I have picked.  This is a competition where 
there is room for several 'winners', in fact the more winners the 
better for us investors!

SNOOPY



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Message sent by Snoopy 
e-mail  tennyson@caverock.net.nz
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"Stay on the upside of the downside, 
Anticipate the anticipation!"



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