1:5 share consolidation, page-4

You need not worry, I can assure you the dividends will rise pro-rata with any consolidation and you will recieve the same amount of dividends.

The 4.1c divi is expressed solely with the current share issue in mind. The "dividend value" being paid out each year is not a coincidence. The "property trust" part of the ALZ "stapled security" (ie that part holding the property investment portfolio) is required by law pretty much to distribute all it's income after interest, tax etc, otherwise tax is deducted at 48% of earnings and the trust status may be threatened.

The more realistic downside to a "crunch" is that the share price nearly always trades lower than the new "higher" reconstructed price indicates. The reason for this is only pschological (though now maybe self-fulling) but still it happens. ie shares of low nominal value are sticky around closely located "significant levels" such as historic support, last rights issue price or just because anything priced in the "30's" seems too cheap! After a 1:5 consolidation the 45c ALZ becomes a $2.25 ALZ except all those "value levels" are now meaningless. $2.25 soon becomes $2.12 with a bit of selling cause it's much of a muchness then suddenly $2 seems a more sensible price to aim for/defend. (ie equiv to 40c old shares). Doesn't seem like a big drop when nominal prices are big so ground is more easily given way then when numbers are small and a few cents seems like a lot. Whether you agree with the logic or not the old market saying "nobody wins in a crunch" (consolidation) didn't come about for nothing.

While I'm making a rare ALZ post I might as well comment on the results today. Very suprised that the reaction was negative because all the bad news was out first half and revaluations were virtually at a standstill over last 6 months. Still, no reason to buy them up thouogh as the outlook is unsuprisingly flat with interest rate headwinds making the corporate side of the business more challenging than the uber-low rate minin-boom experienced last half in conjunction with first home-owner bonus etc. A long slow slog for ALZ I suspect with the lure of development profits in an economic upturn balanced by the risk of double dip slow-down and property price contraction.

Don't hold ALZ but do hold AAZPB.

goodluck