Forum Archive Index - May 2003

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

Hi Graeme,

>
>
> 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. 
>
>

I agree Graeme.   Over the past year I have been looking around the 
bond market looking for opportunities.   The closest I came to buying 
was sniffing around some BIL International notes.   However, when I 
compared the potential returns with the high yielding share 
opportunities in the NZ sharemarket they just didn't stack up as well.
So into high yielding shares was where my money went.

>
>
>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.
>
>

You think such a strategy would not lead to any Advantage? (pun 
intended)

>
>
> Perhaps we are not realising that NZ shares today 
> are by world standards very cheap.
> 
> 

Should NZ shares be judged by world standards?

SNOOPY



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