Forum Archive Index - October 2003

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

Hi mick,
 
>
>Have a  look at RBD from another angle
>That being the opportunity cost of not selling a share
>when it's prospects are not looking very good.
><snip>
>

I appreciate your story of not holding onto a loser, and the story of your 
exit from Brierley's and subsequent success.    However, I question 
why you suggest that lessons from BRY should be applied to RBD.

BRY has been losing money for years.
RBD has not.

BRY is heavily indebted.
RBD is not.

BRY has cut dividends.
RBD has grown dividends (thanks to the share issue).

BRY is in a price and shock sensitive commodity market (hotels)
RBD is in a growth industry with good margins.


So really I don't think, mick, that your assertion that the prospects of 
RBD 'do not look good' stands up.  The reason that I have just boosted 
my holding in RBD is that IMO it has a good outlook and is ridiculously 
cheap.    On the combined value/quality scale I would rate both WRI 
and RBD as the best buys of all on the New Zealand market at the 
moment, bar none.

Your suggestion to sell RBD and invest in something better is 
something I have considered.    But when I started to ask 'what?' there 
wasn't anything.     IMO RBD is among the very best investments you 
can make as I write this.

SNOOPY

hold WRI and RBD (and SKC)

PS

>
>With the proceeds I invested in SKC and over about 12 months
>made a capital gain of 27% plus divs and special div.
>Didn't like the fact that divs were being paid from borowed money so I
>sold 
>

Did you notice that all of those SKC dividends carried full imputation 
credits?   That is proof positive that those dividends were *not* paid 
from borrowed money.



--
Message sent by Snoopy 
on Pegasus Mail version 4.02
----------------------------------
"You can tell me I'm wrong twice, 
but that still only makes me wrong once."


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