debt level

From: Adam Randall


I was reading somewhere that any interest rate rise at present has roughly double the impact of any interest rate rise in the late eighties due to household debt being double now what it was then.
Also if I had some spare money at the moment and I had half a clue about shares I think now would be a good time to buy some. The company I work for had a share price last year of about 1.35 now its about 28c. Last year the price to earnings ratio was about 95. That means it would take 95 years for the share to pay for itself, at the moment the price to earnings ratio is about 9 which is pretty good, a bargain even. Makes me wonder what the hell people were thinking last year. Itwould be the equivalent of a 100000 house getting $20 rent per week, compared to now where it is the equivilent of a 100000 house getting $213 per week.
ps im not good with maths a mistake is possible
 
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Reply: 1
From: Owen .


Check out this SMH story from today's paper. Interesting perspective...

http://www.smh.com.au/articles/2002/07/02/1023864731860.html

Also talking of shares. A woman at work just came up to me asking about US online traders. She wants to throw $500 at Worldcom. Apparently they have gone from US$66 down to US$0.06...that's 6 cents. Last night they went back up to US 10 cents. They aren't in liquidation, just appointed a new CEO etc.

Time for a bit of speculation?

Owen

"Gambling promises the poor what property performs for the rich – something for nothing"
 
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Reply: 1.1
From: Glenn Mott


Owen,

I would caution you friend about buying into something just because it looked cheap..

OneTel also looked cheap when in went into receivership. The owners of the business told us that everything would be fine and that the company was on track to have a huge future, it was just having some short term cash-flow issues that would be rectified soon!!

Unfortunately, this was another lie from the people that had got the business into trouble by lieing to their business partners and investors in the first place.

I find it hard to believe that by just replacing a ceo and a couple of accountants you could right all the wrongs in such a huge, corrupt company.

Trying to pick value in carcasses is best left to vultures who can differentiate between the meat and the rot. For example, what parts of the business still have a realizable capital value, which are producing cash flows, which are run efficiently?? Think about doing the due diligence that you would undertake to buy a whole business and then apply that to the shares you are interested in (Buffet).

Glenn
 
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Reply: 1.1.1
From: Owen .


I agree with you 100% and she is well aware of that too. I think she just wants to have a punt and if it comes off...cool!!

Owen

"Gambling promises the poor what property performs for the rich – something for nothing"
 
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A

Anonymous

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Reply: 1.1.1.1
From: Anonymous


Better punts out there - Try news corp
 
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WebBoard

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Reply: 1.1.1.1.1
From: Anonymous


On 7/3/02 6:43:00 PM, Anonymous wrote:
>Better punts out there - Try
>news corp

Better still QBE - watch this space and profits?
 
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