going up now?, page-124

I wouldn't even begin speculating on the dividend return, however, keep in mind while this company is technically a listed company it still operates and is held much like a private company given the vast holdings of related parties.

The Simonds family hold a large percentage and it is in their interest to increase the company in all aspects including dividend payout.

On the note of the housing market i am a skeptic when it comes to property and the current market bubble which doesn't seem to be slowing any time soon. A further reduction in rates will only boost Simonds house and land sales as more young people take on debt which they will not be able to service should bank rates rise to 7%+. That being said while the market is still hot and I expect growth corridors to continue to experience new home building on mass I think Simonds is a safe investment and the company is heavily undervalued.

On the note of BAA government funding on trades will increase as they try to reduce unemployment by continually upskilling as those in education are not included in the figures for unemployment. BAA is going to experience steady growth over the comming 12 months and with BAA online comming around soon it should help the profits for this division.

A slight change of topic I advised people to sell out of the major banks 2 years ago and continue to hold this stance. Should rates increase which they will I believe we will see a greater proportion of defaults inparticular in the markets which Simonds builds in thus any increase in rates would signal a sell for me in SIO. I don't expect that for a while as the only thing really pumping the economy is low interest rates and new developments