David Sylvain

Posts Tagged 'anne louise boutique'

Fundamental Analysis: How To Read A Balance Sheet

A multi-million-dollar tax break that would have sweetened a Canadian pension fund’s bid for control of Auckland International Airport(AIA) was blocked in a surprise move by the Government last night. The Canada Pension Plan and Investment Board (CPPIB) planned to issue stapled securities as a “tax-efficient” device as part of its offer to airport shareholders. Bids by The Canadian Pension Plan Investment Board and Dubai Aerospace Enterprise for a premium of over 60% of my purchase price is evidence of how cheap the shares were. At the current share price of $1.13 it represents excellent value and I would like to add some more, should my wife stop taking me off overseas and making me pay for it! Now another reason I bought this boutiqueswas that it was cheap in comparison to its share price high, at just over $1.70 per share, and its net asset value to capital market price.

 

As an investor you need to have an edge over others and for this understanding of the market and having a good knowledge of the stock market software is necessary. Its current market cap of NZ$872 million is less than the net asset value of just over $1.1 billion, so I had to buy. If a long-term increase in rates is in the offing, value could outperform growth for years. The history of passenger growth for the company is excellent and more could be expected, but not guaranteed, in the future if history is any measure of the company going forward. Ryman, the operator of approx 3000 retirement units, up from 900 eight years ago, increased profit by approx 20% in November 2007 and has future plans to grow at a similar rate in the medium term. I chose Ryman over Metlife because of the size of its current land bank for future use, approx enough for 2000 units. I have held the company for around 3 years and it has cost me approx $1.75 per share. The individual share purchase cost relative to the various financial ratios and measures of the business in comparison to international airports was also an attractive carrot.