Forum Archive Index - February 2003

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

Hi Bill,

>
>
>the NZ
>stocks are a yield stock. I have been playing around with the idea
>that one should use the Top 10 stocks, grade them in ranking of
>lowest PE and highest Yield. Then choose 5 stocks with the lowest PE
>and highest yield in combination. Has anyone been down this road?
>Would be a yearly exercise, take about half an hour.
>
>

About forty five minutes work once I wrote it all out :-)...

For a yield ranking among the top ten I get:

SKC 10.31%, CEN 7.53%, FPH 7.27%, TEL 6.58%, NGC 4.48%, CAH 4.37%, 
INL 4.16%, WHS 3.5%, AIA 3.1% and SKY 0%

For P/E (low to high) I get:

WHS 21.3, CAH 21.7, FPH 22.6, SKC 24.5, CEN 25.0,  NGC 32.4, INL 
34.2, AIA 38.3, TEL 42.7, SKY 46.4

Those that are in both 'top fives' include:

SKC, CEN, FPH.

Then if we throw in CAH ( I know WHS has a lower P/E, but that wasn't 
so at the start of the year ) and TEL with its high yield and our 
portfolio of five comes out as:

SKC, CEN, FPH, CAH, and TEL

I'm quite surprise to see Fisher and Paykel Healthcare on such a high 
yield and low P/E.  Does that yield include any kind of special 
dividend?   Does the profit include a large whack of exchange rate 
gains?  Perhaps someone who follows FPH more closely than I do can 
answer these questions.

Also odd is that TEL P/E of 46, but I expect that includes the AAPT 
writedown and core operating P/E is much lower.

>
> 
>Snoopy stated that his stocks returned over 20% last year, 
>congrats, without being personal did this include any share 
>appreciation, making the assumption that you are still holding those
>stocks
> 

Yes that figure does include share price appreciation of the ones 
that went up and depreciation of the ones that went down, plus all 
the dividend income earned of course.  However, I think I'll be very 
lucky to get that return this year.  If I can make 10-11% in this 
market I will be quite satisfied.

SNOOPY



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