The Liberals were in power and did the usual Liberal thing: sold office blocks to get cash to bribe voters with tax cuts. We joined a Cromwell syndicate that was launched to buy an office block in Canberra. I almost felt sorry for Peter Costello. We got a yield of 11%, all of it tax-deferred and paid to us by Peter Costello via the Cromwell Syndicate as we were now his new landlord.
Not only that but as ACT land is leasehold all the buying expenses (including Stamp Duty) were tax-deductible in the first year. So we got another 11% that was tax-deferred. Later, the syndicate was rolled into Cromwell Group. So we bought more CMW shares usually for 60 to 65 cents.
That was the Cromwell 'normal' and when its SP dipped, we bought more, and more.
In last November-January, the Cromwell 'normal' was between 83 and 85 cents.
Then Cromwell reached for and got included in the Top 300 companies and its SP zoomed to 103-105 cents.
Big Question: Is that Cromwell's new normal? Only time will tell.
But I'm grateful to Peter Costello. Without him I would not be rich.
CMW Price at posting:
$1.04 Sentiment: Hold Disclosure: Held
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