A.I.M. Users Bulletin Board

[Neil Scott]

Purchasing dept,

I forgot to mention how busy the purchasing dept was towards the end of the month when we had our dive.
I have been using some valuation software so I can gauge if I'm paying the right price or not for the companies earnings.

The software basically works out a normalised ROE then you divide that by the return that you want and finally multiply that figure by the equity and that should give you the approximate price (that is if the stock was paying out all the earnings, similar to a bond), the price will be higher if the depending upon the retained profits.

The recent market plunges have been good opportunities to buy companies at far better prices.
I picked up some ANZ Bank, Macquarie bank and Aristocrat Leisure for some very attractive prices, these are all in the 'Blue Chip' category as I wasn't going to start any new programs with tiny mining stocks.
At least with the three stocks above they are all good dividend payers.


Regards

Neil