Forum Archive Index - September 2003

["seconds" <secondstep70@hotmail.com>]

telecom?

Another thing in common is a new entrant to their market (woosh in the
broadband space).

DISC: no TEL, or RBD held.

----- Original Message -----
From: <tennyson@caverock.net.nz>
To: <sharechat@sharechat.co.nz>
Sent: Friday, September 26, 2003 12:01 AM
Subject: [sharechat] RBD vs XXX, a comparison


>
> OK this is the last thread I intend to start on RBD for a while, but I
think
> the comparison between RBD and a mystery company that I shall
> identify only as XXX makes interesting reading:
>
> 1a/  RBD is one of the top three players in its chosen market in New
> Zealand.
> 1b/  XXX is one of the top three players in its chosen market in New
> Zealand.
>
> 2a/  RBD has three general 'sub categories of business' that go to
> make up its business model.
> 2b/  XXX has three general 'sub categories of business' that go to
> make up its business model.
>
> 3a/ RBD is expanding into Australia but, so far, is having trouble
> making it pay
> 3b/ XXX is expanding into Australia but, so far, is having trouble
> making it pay
>
> 4a/ RBD has few large capital requirements going forwards.
> Expansion can be piecewise as and where funds allow.
> 4b/  XXX has large capital expenditure requirements going forwards
>
> 5a/ Debt position of RBD.   If all profits are pushed into paying back
> long term debt it will be paid back in:
>
> $30.377m/$11.014m= 2.75years
>
> 5b/ Debt position of XXX.   If all profits are pushed into paying back
> long term debt it will be paid back in:
>
> $4,459m/$704m= 6.33 years
>
> 6a/  RBD Yield is 12% (imputed)
>
> 6b/ XXX yield is 5.8%(imputed).  The share price of XXX would have to
> drop back to $2.50 to give the same yield as RBD
>
> 7a/  RBD have just lost their chief executive.
>
> 7b/  XXX have just lost their chief executive.   Oops that is a little
> premature.   She hasn't been given her marching orders quite yet.
> ( Hell, I hope I haven't given the game away here ;-) )
>
> I put it to you.    Which is the better income investment here?   By my
> reckoning it is RBD by a factor of two.    Yet there appear to be some
> out there who don't think RBD is cheap enough to buy into yet?
>
> Hmmmmm
>
> SNOOPY
>
> discl: hold RBD (and XXX!)
>
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> --
> Message sent by Snoopy
> on Pegasus Mail version 4.02
> ----------------------------------
> "Dogs have big tongues, so you can bet they don't
> bite them by accident"
>
>
> --------------------------------------------------------------------------
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>

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