Rates of Return and Market Performance
There is a clear disparity in share price performance
between the companies at the top of the rate of return rankings and the
companies at the bottom of the rankings.
If someone had invested $1,000 in January 1997 in the
seven companies with the highest rates of return, they would have had a portfolio worth
$6,558 at the end of August 2002 (without taking any
account of dividends or transaction costs), a return
equivalent to 40 per cent a year.
|
High Return Companies*
|
| Company Name |
Jan-97 |
Aug-99 |
Aug-00 |
Aug-01 |
Aug-02 |
| Cochlear |
1,000 |
4,536 |
8,031 |
12,662 |
10,810 |
| Aristocrat |
1,000 |
4,037 |
7,657 |
8,820 |
6,373 |
| Flight Centre |
1,000 |
3,010 |
7,401 |
8,671 |
8,668 |
| Leighton |
1,000 |
1,159 |
1,189 |
1,850 |
2,061 |
| Coal and Allied |
1,000 |
1,251 |
1,543 |
2,127 |
2,189 |
| Woodside |
1,000 |
1,193 |
1,556 |
1,495 |
1,420 |
| Toll Holdings |
1,000 |
2,403 |
4,343 |
9,953 |
14,386 |
| $1,000 invested |
1,000 |
2,513 |
4,532 |
6,511 |
6,558 |
| * Returns have been
adjusted to take account of capital
reconstructions and entitlements, where
applicable, but do not include dividends. |
In contrast, investing $1,000 in January 1997 in the
seven companies with the lowest rates of return would
have left the investor with only $918, a negative return
over a five and a half-year period.
|
Low
Return Companies* |
| Company Name |
Jan-97 |
Aug-99 |
Aug-00 |
Aug-01 |
Aug-02 |
| AGL |
1,000 |
1,422 |
1,466 |
1,165 |
1,397 |
| Lend Lease |
1,000 |
1,569 |
1,676 |
869 |
903 |
| Westfield America Trust |
1,000 |
1,407 |
1,372 |
1,522 |
1,726 |
| MIM Holdings |
1,000 |
699 |
648 |
608 |
676 |
| Coca Cola Amatil |
1,000 |
421 |
293 |
394 |
471 |
| Orica |
1,000 |
596 |
456 |
341 |
704 |
| Mayne |
1,000 |
708 |
579 |
843 |
548 |
| $1,000 invested |
1,000 |
974 |
927 |
820 |
918 |
| * Returns have been
adjusted to take account of capital
reconstructions and entitlements, where
applicable, but do not include dividends. |
By comparison, $1,000 invested in the All Ordinaries
would have generated $1,268, an annualized rate of return
of 4.3 per cent.
|
