Where to invest?

[KW]

I've not looked at the NZ share market for some time, but my parents have asked me to put some money in the market for them. I'm looking for one of my usual pet stocks - high dividend yield, good growth history and prospects, good ROE and ROC, and trading on a reasonable P/E. Can you suggest some stocks to have a look at?

[percy]

You may care to look at the following.ABA,AWF,EBO,FRE,SKL,and TUA.
Two large cap are POT and RYM.
Sauce has posted some brilliant posts on RYM on Owner's earnings vs retained earnings thread. Paying modest divie but have used retained earnings to great affect.
ABA,if they can get hearing aid clinics in Asia model right, will have huge growth,as very few deaf Asians wear properly fitted hearing aids.
AWF.contract labour supplier.Easy to grow without need of a lot of capital.Have recently moved into supplying rest home staff labour.
EBO.History of very strong growth.Medical supplys.Growth will come from Aussie expansion.
FRE.Courier parcel delivery.Internet sales have to be delivered.
SKL.Specialist rubber moulding,with componant suppliers.Dairying industry supplier.
TUA.Car auctions,importers second hand cars from Japan.Have their own finnance company,so can also clip that ticket.
POT.NZ Hub port.Situated in the right place,doing the right things.Metro inland port in Auckland services tauranga by rail.

[janner]

A possible drop in earnings for POT due to Kiwifruit losses Percy ??

The news is not looking good for that industry.

[percy]

A possible drop in earnings for POT due to Kiwifruit losses Percy ??

The news is not looking good for that industry.

Very bad news for the Kiwifruit industry.POT will have less business from Kiwifruit exports.Agreed.
POT is the hub port for NZ.With larger ships,POT is the ONLY NZ port a lot of these ships will come to, so I expect POT's growth over the next few years will continue.

[Penfold]

I put my Mum's cash mostly in TD's. What I put in the market I put in RYM, QBE, MVN, FPH, and STU. Luckily I heavily weighted it towards RYM so she has made a tidy return over the last 3 years. Is it really the time for them to be thinking of shares?

[shasta]

I've not looked at the NZ share market for some time, but my parents have asked me to put some money in the market for them. I'm looking for one of my usual pet stocks - high dividend yield, good growth history and prospects, good ROE and ROC, and trading on a reasonable P/E. Can you suggest some stocks to have a look at?

Any of the Utilities/Energy companies (CEN, TPW), Port companies (POA, POT), Retirement Villages RYM/MET, plus the large caps FBU, SKC

IFT also fits the bill, but given you are after a higher yield, perhaps there bonds are better suited? (same with the bonds on any of the NZX stocks if u like the underlying company)

[777]

No mention of listed property trusts such as KIP, GMT, PFI and ANO. More for dividend yield rather than "above average" growth but bought on any dips are better than term deposits.

CAV is another good yield stock.

Perhaps CMO.

[craic]

At the present time TEL is the backbone of my portfolio. The most recent QUARTERLY dividend gave me $3000, fully inputted which means I can claim some tax back on the tax they paid. For people on pensions, one to three grand every quarter is very useful. I have been there for several years now and all the ups and downs mean little to me as I don't need the capital, I prefer the 10%. I have or have had, some of the others mentioned but none are as good as TEL in my mind. The quarterly dividend confuses some people as they see the cash amount - 7 cents per share or whatever - and compare it to half-yearly dividends for other companies.I recently sold CEN after years of loss and waiting for recovery and bought SKC on the grounds that when times get tough people head for the pokies and the world cup won't do them any harm. So far I am doing well on this one. The sun is shining in Hawkes Bay, my still has produced enough ethanol to preserve a large elephant anf Ireland is still in the world cup.

[buns]

I recently sold CEN after years of loss and waiting for recovery and bought SKC on the grounds that when times get tough people head for the pokies

Really? When times get tough I still pay my power bill but lower my discretionary spend.

That aside, you are buying a company here, not betting on society.

Sky City in my mind is the worst run company on the NZX (over recent times at least). Do a wee 'what have they done with retained earnings timeline' with these guys from 2005 onwards, its an interesting story. In summary there profits are slightly improving year on year but in that time there equity (pumped cheap $$ in to stay afloat) has around doubled (from memory), and they haven't made a single dollar on that additional equity as it was to used to pay down debt (why is a monopoly in debt to start with?) from poor Aussie assets, all of which are right on the line of being write down.

[craic]

Buns, I spent a large part of my working life sorting out people who do not reduce their discretionary spending when times get tough - on behalf of the Courts. Many had made off with other peoples cash and from the case histories that I,and others had to write, casinos do well in hard times.Its a fairly well known fact of criminal psychology. I bought my SKC shares a couple or three months ago for 323cps and they are now335cps, an increase of 3.5%