-=> Lindsay McKeon wrote to Graham Comitti <=- 
-=> On 12-02-94 about Dividend Re-investment p <=-

LM> GC> After you hold a min of 500 ordinary or 100 preference shares
LM> GC> for six  months you receive a shareholders discount card, which
LM> GC> enables the  nominated card holder (the share holder can 
LM> GC> nominate for someone else to 
LM> GC> be the card holder) to discounts of between 3% and 10% at Coles
LM> GC> and  associated stores (ie Target, KMart, Fosseys, Bi-
LM> GC> Low, etc) We have found 
LM> GC> that we  generally get 7.5% at Coles,Target,KMart, 
LM> GC> so I'll use the 7.5% 
LM>Also, they only issue the cards twice a year (I believe), so it
LM>could take up to 12 months to get your card if your first six months
LM>expires just after the cards have been issued. I believe they
LM>are issued in November and May.


Your partly correct.
Cards are issued twice a year with common expiry dates, end Dec & June, 
but card is issued when you've held shares 6 months so if you purchased 
shares half way through a six month period then your initial card would 
only be valid for the remainder of that period.  Therefore the it only 
takes six months (not 12) to get your 1st card.   


LM>Most family's weekly expenditure would be on food, which only
LM>scores a 5% or 3.5% discount. 

Discount at Coles is 5% on most items but 7.5% for variety items, At Bi 
Low its 3% on all items, At Myers & Grace Bros its b/w 5% and 10%, Kmart 
& Tyremaster its 7.5% except tobacco which is 5%, Target 7.5%, Fosseys 
5% to 7.5%, Katies 10%, Liquorland, Red Rooster & OfficeWorks 5%, World 
4 Kids 7.5%,  Last tax year we averaged close to 7.5% discount overall.

I agree that if one were to just purchase pure grocery items and shop 
only at Bi-low the discount benefit would be down around the 3%   But 
that's a tax free benefit and we could go on and on with ifs... We 
mostly shop Coles, Office Works, Katies, Myers, Kmart & Target and 
groceries (food) amount to less than half the bills,  but even if we 
only used a 5% overall discount figure the savings/return on investment 
is still pretty good in my estimation. And as most persons/families 
would use the discount card for much more than $100 a week the savings 
would normally be for more than I gave in the example. We average around 
$147 per week for family of 3 with 2 cars.

 I haven't bother to get one of these cards (or invest in CML)
LM>as I'm single, and I don't spend enough at their stores to make it
LM>worth my while.

The card can be still useful for singles or those who don't spend much 
on food, as you can buy car parts, tyres, oil, tools, clothes, 
stationery, computers & software and so the list goes on.

Even without the discount card CML may prove to be a reasonable buy at 
its current price. Seems to be moving up against the tide at the moment.

Anyway its its horses for courses, and likewise some investments suit 
some but not others.  

--- Maximus/2 2.02