more compelling reasons to buy timpb

Recent announcements make for sober reading on TIM ords.

Yep sales are up..but big deal, look at the NP.

The '08 NP guide of between $53-57m translates to a diluted EPS of around 17.5 and 18 cents. ('06 of 26.9 and '07 of 21.7) The slide is on.

What's more the div slide is on as well. The recent ann of 1.5 cents can't give any more than a full year div of say 4 cents.(As against 9.5 cents and 7 cents for the last two years).

At current price of 81 cents the div is just 5%!

Surely, with a higher interest rate regime a div of at least this has to become the norm otherwise the investors go CASH big time). Will the TIM share price come under pressure from here?

The TIMPB offering is very attractive by comparison and offers a reduced risk exposure to agribusiness.

The future strengths are the greater demand for food and timber products.

The "sleeper" is still the ATO position to this industry. The below article was from the Spectator:


Australia's agribusiness sector is at loggerheads with the Australian Taxation Office (ATO). Agribusiness groups do not like the ATO decision to ban tax breaks on non-forestry agribusiness managed investment schemes (MIS). The MIS test case will go to the full Federal Court of Australia in mid-August 2008. A decision could be reached by the close of 2008. Groups which are supportive of the test case include Great Southern and Timbercorp