Feltex (FTX) - All over for shareholders

[winner69]

Todays low has to be as far it goes

FTX guidance for F05 is eps of 16 cents so current pe <10

Promised div is 13 cents - even without imputation credits yield >8%

So Ramp #3 (excuse me minder) under way - don't miss the ride

[Snow Leopard]

To repeat what I said on the Ramp 2 thread.

Given that no one knows why it is sliding I would not bet that it will hit bottom here. However the lower it goes the better the buy.

The prospectus claims that there will be some imputation credits to go with next years divvy making it worth nearly 17cps gross. So the yield is about 10.4% at a SP of 157*.

corrected 10.7% to 10.4%.

[nest]

i have some and am going to keep them. i like dividends, its all money in the bank. what goes up must come down and what goes down will come up, just a waiting game?!?!?!

[Snow Leopard]

I am cautiously optimistic that Winner69 has successfully predicted the bottom of this drop.

Friday saw good support on a reasonably high turn-over (but by definition also more selling), and it closed even on the day.
Let us see what Monday brings, see if the support at 157 remains, it starts to climb or if it resumes it gently decent.
Assuming that the forecast for next year holds true then there is three lots of divies in the next 13 months worth 23cps GROSS.
My question mark at this stage is what the earning (forecast) will be for the 2005-6 year, the commercial sector looks good but residential must have settled back by then. I am picking a little growth at the moment and on the current P/E there is some room for the SP to move up. Possibly interest rates will be starting to come down again to make the yield more interesting and buoy up the price.

I have previously posted that the was little risk to this and surely there is less now.
Anyway unless I miss the boat on a rebound I think I will be buying in for a while.
Any other opinions?

[boring]

FTX looks like a bargain, in a market where it's harder to find bargains. Maybe this share is just being overlooked, I can't seen why it's being sold down to these levels. Who's doing the selling and why ?

If FTX do achieve their projections, and at the moment there is no evidence why they won't, then on valuation it's certainly a bargain compared to CAV. CAV has a consistent history of performance, but I see no reason why FTX deserves such a discounted valuation.

I agree that this share should have an accumulate rating for prospective medium-term holders ... but then again I'm known to get these things wrong from time to time.

[Nevl]

Hi

Well you guys have me convinced so I put a small amount into FTX. In time to get the first divi. It is all all margin money and the divis alone in the next 13 months will almost be double what it costs in interest. So money for jam as they say and lets hope any surprises are positive!!

thanks
Nevan

[Cooper]

Nevl... what is the rate on your margin account? Sounds like it's half what mine is!!

[Nevl]

Actually just looking at my latest interest from ASB it is 9.15% so not quite as chap still. Should get about 18cps from FTX which is just on 11% return. Anyway am useing ASB.

[Snow Leopard]

I have convinced myself and acquired a few thousand at $1.58 a go.

[winner69]

Good on you guys ... you did get the price up to 160 during the day

How about a bit more buying and get it back to 170 (at least 165) before the dividend

Yield still the same and as paper tiger has pointed out 23 cents GROSS DIVIDEND OVER THE NEXT 13 MONTHS