* Quoting from "Graham Comitti to Andrew Freeman on 13 Nov 94  21:51" *

 -=> Andrew Freeman wrote to All  <=- 
 -=> On 11-09-94 about Dividend Re-investment pl <=-
 
 AF>I have recently written to a number of companies along the
 AF>following lines. Anyone interested in assisting with a campaign
 AF>to get companies which have recently suspended dividend
 AF>re-investment plans to re-introduce them?
 AF>...


 GC> Hi Andrew,

 GC> Like Bob Muirhead, I'm generally against DRP's, for the reasons he has
 GC> given, as well as the odd lot problem when trading as against long
 GC> term  buy and hold investing.

 GC> Regards, Graham from Sunbury

 GC> VOTE `why fix what ain't broke'

I have addressed Bob Muirhead's comments. I agree with long term
buy and hold investing - this is facilitated by DRPs. For
example, one might start with 3000 Westpac shares at 30 years of
age, after paying off ones home, and maximising ones investment
in employer funded superannuation, and when retired perhaps have
over 10001 shares with the aid of DRPs.

Odd lots are only a
problem is sold seperate from a marketable parcel. This means
they are normally not a problem for either short term holders or
long term holders, unless they choose to retain an odd lot when
they sell the rest of their shares (to ensure this does not
happen as a result of getting some more residual shares from
scheme after sell shares, cancel participation in scheme when
sell last holding).

For example, they are not a problem if one sells ones holdings of
Westpac shares in two parcels - one of 5000 and one as 5001.

DRPs are not broke - they can be improved - thus, the solution is
not to stop them, but to improve them.

Regards

Andrew

--- GEcho 1.10+