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Words: | Submitted: Fri Jan 28 2005
... strengthened Australian dollar, and record consumer spending, the trend in forecast to continue in the near to medium term. Colorado Group Ltd (Colorado) and Noni-B Ltd (Noni-B) have performed admirably in the period 2001-2004. While imports have increased price competition and the industry has become increasingly concentrated, both Colorado and Noni-B continue to produce strong results, posting solid returns and significant dividends to their shareholders. Some investment analysts have remarked that the retail market is "extremely overpriced" as low interest rates, government initiatives, consumer confidence and the stronger Australian dollar are viewed as being largely responsible for the industry's strong performance.1 This said, anticipating stable interest rates and moderate to strong consumer confidence, both companies represent attractive investment opportunities. Noni-B, with a pattern of more generous dividend payouts and financial performance driven by organic growth, astute brand and niche market development, is the preferred short-term investment option to Colorado. Colorado is ...
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