Forum Archive Index - December 2003

[Tony <tony@ltdrisk.com>]

I have done some numbers and have come up with the following shares:
WHS
DPC
SKC
INL
DBB
RBD
POT

Some have been discussed at length here but some not.
WOuld anyone care to comment on INL and DBB?

Also, WHS has taken a dive lately, presenting a buying opportunity?????

SKC goes down on what seems good news about expansion in Adelaide...?

RBD also seems to be a bargain...


POT just doesn't display great value to me. They pay out a large dividend,
their ROE (weighted for previous three years) is 11.6%.

I fitted a linear curve to their historical ROE to see what a fair number
would be for ROE growth and I get 0.37%

I realise they are a monopoly but where is their growth in income going to
come from(other than just putting up prices)? Have they got a lot of spare
capacity?

I can't see why there should be a PE ratio of more than about 15 with an ROE
of 12%

This gives a IRR of about 2% based on current price of 415. AT a "bargain"
price of 360 the IRR rises to 6%

tony

Discl: hold WHS


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