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From: | "Graeme & Paula Richardson" <chemist@actrix.gen.nz> |
Date: | Sun, 11 May 2003 21:01:56 +1200 |
Why are kiwis so keen to provide debt finance for companies
through debenture bonds that offer average rates of return for the
risk involved, and which also offer the company concerned tax favorable
sources of finance, when they will not back companies and buy equity stocks?
Shares for several companies have quietly increased over the past year e.g. FBU,
HBY, SKC, CEN, HLG, and many are today offering excellent yields. It seems
that a fear of short term stock 'losses' are forcing kiwis into trading
potentially risky debentures with companies that seemingly cannot attract
shareholder funds. Perhaps we are not realising that NZ shares today are by
world standards very cheap.
Graeme Richardson
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