Forum Archive Index - May 2004

["Karyn W" <karyn_in_oz@hotmail.com>]

Hi Snoopy
I bought WRI for the high yield, but then they cut the dividend, making it 
less attractive than the others I mentioned.  The fall from $1.45 to $1.20 
meant I lost capital, whereas getting out at $1.50 preserves it, rather than 
watching it hit the skids again.  On the other hand, PGG, RNS and FPA share 
prices have moved up significantly over the past few months and maintained 
or increased their dividends.

On the subject of RNS - yes they are a niche player but this is actually 
their strength.  They have exclusive distribution arrangements meaning they 
have NO competition in the market for the products they represent.  The big 
one is Apple - which is enjoying huge demand for its products at present 
(particularly the ipod).  They got out of representing products where there 
is competition, which resulted in the halving of their revenues, but also 
the reversal of their losses.  The share price has gone through a 
significant rerating over the last year, making RNS one of the best 
performers on the NZ market, and all this in the midst of an IT downturn.

I see Norgate's strategy is for WRI to become an international player - this 
usually spells the kiss of death for a kiwi company :-)

Karyn

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