Eureka Correspondence

Upgrading Azure and understanding a graph of dwelling prices.

Upgrading Azure

In June you said you were giving up on Azure because the lack of trust with the information coming out. History shows it was a good time to sell. Now you are issuing a hold (see Azure upgraded, September 7). I am getting mixed signals here.

Domenic

Simon Dumaresq’s response: Thanks for your letter. I have spent time with the new chairman and developed a base level of comfort. Also the stock is now 10.5c vs 20c in June. Also the upside from result was that cash flow was actually strong, meaning the risk of a short term funding issue is lower. 

Understanding a graph of dwelling prices

Alan Kohler’s graph of dwelling prices mentions that prices are up marginally in August, but the chart shows January increases?

Jim

Editor’s response: Thanks for your letter. CoreLogic RP Data released a regular update last week showing an average increase in capital city dwelling prices of 0.3 per cent in August. The graph shows the change in dwelling prices for a number of capital cities over (almost) the past decade. The x axis shows two-year intervals over that time, marked at January every two years.