Forum Archive Index - December 2003

[Stephen Judd <sljudd@paradise.net.nz>]

On Tue, 2003-12-02 at 18:06, Tony wrote:
> 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?????

I incline to think so. The rising NZD must help the NZ business' margins
(or allow lower prices). And there seems to be room yet for growth in NZ
through larger stores, stores in smaller towns, and an ever-broadening
range of goods.

It really comes down to whether you think the Australian problems can be
solved through management actions (restructuring) or not (competition,
inability to stock key branded goods with real pull).

(I hold some WHS, which I bought at just under $5. Ow.)

> RBD also seems to be a bargain...

Snoopy would argue so. I can't see it myself. There's extreme
competition in pizza now, KFC's main product is dreadfully unhealthy,
and Starbucks to my observation does not seem to be getting traction.
Maybe if they reposition fried chicken as a decadent treat? Anyway, I
can see how they can recover, but I can't see how they can ever be
great.

> 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%.

You know, POT was the second share I bought, in about July. (I made my
first ventures into shares earlier this year). At the time, they seemed
good to me - their ROE had increased year on year for the last 5 years,
they had a lowish P/E compared to other port companies, and there was
that wall of wood, you know? Now I'm not so sure. I'm still hanging in
there, but I'm thinking hard.

I am extremely interested in DPC, who have a great story in terms of
growth. I also like how their staff are incented through share
ownership, which is good for me too. (Yes, I own some). On the down
side, they are small and sparsely traded.

Stephen


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