Forum Archive Index - January 2003

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

Hi Phaedrus.

>
>
>LPC has been in an extended trading range for years. Within
>this, it is currently in a downtrend. Long-term, it has gone
>nowhere, and gives no technical indication that that is about
>to change anytime soon. LPC is probably best viewed as a good
>income stock, nothing more. I have marked the more significant
>support levels in blue. 
> 
>


Fair comments I think, although I would like to add that although the 
share price of LPC is 'going nowhere', shareholders are getting very 
good dividends out of the company each year.    If an income share 
pays out all of its earnings in dividends (and over the long term 
LPC does this) then the share price 'going nowhere' is exactly what 
the investor can expect.  There is no shame in that.

There is also nothing wrong with being just a good income share.  I 
know that such a share would not excite you traders much.   But a 
share that 'only' has the potential to go up in value by 20% or so is 
not to be sneezed at in today's market.  The counterpoint to this is 
that LPC has limited downside risk too.

Investors should note that due to losing a couple of big shipping 
contracts in 2002, the expectation is that profits for this year 
will be down on last.   This in turn means that possibly the level 
of dividend is under threat this year.   Looking out further, now 
that the port has a competitive labour agreement in place, prospects 
look much better.

SNOOPY

discl: hold LPC, and intend to be there for the log haul!


---------------------------------
Message sent by Snoopy 
e-mail  tennyson@caverock.net.nz
on Pegasus Mail version 2.55
----------------------------------
"Dogs have big tongues, so you can bet they don't 
bite them by accident"

----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/