Forum Archive Index - October 2003

["Morgy 40" <morgy40@hotmail.com>]

Good,  nor am I . All accounts are Lies, when it closes through .87 I will be convinced that it might be moving up, the point you miss is that you can be right but still wrong, what difference does your email make against brokers report ?, not diddly squat.

But it makes you feel better eh !, add TA in and you will be fine.

Regards

Morgy

>From: "Shayne King"

>Reply-To: sharechat@sharechat.co.nz

>To: sharechat@sharechat.co.nz

>Subject: [sharechat] DOW:ASX im not convinced.

>Date: Thu, 02 Oct 2003 11:34:24 +0000

>

>

>Im not that convinced with DOW. I did a bit of analysis of its

>financials and this is what i found:

>- net cash flows for 2003 went through the roof with a 86% increase

>from last year. This was mainly attributable to a large increase in

>receipts from customers (24% increase from 2002) while payments to

>suppliers increased only 18%.

>- as cristine mentioned earlier. goodwill is at $345,706,000!!!!This

>makes up an alarming 17% of total assets. Therefore, if at any stage

>goodwill is compromised, this will severly affect any debt covenants

>it may have and further affect any future financing obligations that

>may arise in the future.

>- Net assets per share is only 78c. At todays shareprice (87c), DOW

>is trading at a premium. Whats even more alarming, is that if u

>calculate net assets per share less goodwill, it is only 43c.

>- P/E remains relatively low at 12 indicating there is no huge

>expectation that this company will deliver any exceptional profits.

>- out of the 5 executives, 11 non-executive directors, and 1

>executive director, a total of $4,248,226 was paid out in

>remuneration. This isnt even including the $9,768,750 they have in

>ordinary shares.

>- what is however the most worrying is its liquidity ratio (current

>ratio). For the 2003 year it was 1.19, its lowest level since 1999.

>Prior to 2003, it has averaged around 1.75, so this year it is

>extremely low.

>- also as cristine mentioned earlier, its dividend yeild is only

>3.4% indicating it wouldnt make for a very healthy growth stock.

>

>Based on my analysis, im not that convinced. i prefer to invest in a

>company that is trading at a discount to its net asset backing.

>

>Your comments on my analysis is most welcome

>

>regards

>shayne

>

>>From: "Morgy 40"

>>Reply-To: sharechat@sharechat.co.nz

>>To: sharechat@sharechat.co.nz

>>Subject: [sharechat] DOW:ASX

>>Date: Thu, 02 Oct 2003 16:18:26 +1200

>>

>

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