PGW just did a large capital raising for an influx of cash so I doubt they will be paying a dividend in the near term.

Also for the past 12 months they only paid 5c of divs, PGW skipped out on paying their traditional full year dividend, and may do so for the future.

Interim 5.00000¢ 1 Apr 09
Final 11.00000¢ 30 Sep 08
Interim 5.00000¢ 1 Apr 08
Final 8.00000¢ 5 Oct 07
Interim 4.00000¢ 2 Apr 07
Final 6.00000¢ 2.95520¢ 2 Oct 06
Interim 4.00000¢ 31 Mar 06


The current yield reflects net present value of all future cash flows, so the 9m in interest payable is fixed, and the capital repayment at the end should 100 but the market is pricing in the current assets net value 35m minus the 9m, to get 26m.


By buying these you are speculating that NZS or PGW or both will appreciate in value, but if you believed this it would be more prudent to buy the stocks directly, as come April 2011 you will be forced to liquidate your holding in PGW/ NZS, through the redemption of RPC010, whether you are in profit or loss.

I guess at that stage with the redeption money you could then buy then directly yourself, but if that is the plan you could just do that now.

One thing to note is the best sell order to buy in is $50.78 per 100, which means current holders value RPC assets at 30.4m, buyers at 26.6m