Forum Archive Index - December 1999

[Michael Sprott <MSPROTT@clear.co.nz>]

Hi Chris

My two cents worth. The New Zealand market has been relatively cautious in
it's approach to trading of IT shares. Sure there are plenty which have
doubled in the last 6 months but many of these companies have excellent
growth prospects (Advantage for example). In terms of whether there will be
a downturn in IT stocks in NZ then, I would suggest that those companies
which have their fundamentals rights and have their fingers in the right
pies, they will continue to do well. Just like any company. Having said
that, I believe that some of the NZ IT stocks are fully priced based on what
they have shown the market in terms of results and growth prospects to date.
If they continue to produce the goods they will continue to rise.

I would be careful about putting money into any IT share, however, without
understanding what business they are in and what is their competitive
advantage.

Overall, I think that the growth in IT stocks will continue for some time
soon. After all, what other hot markets are their which cash rich investors
can make a buck in?

ms

> -----Original Message-----
> From: Chris [SMTP:crodgers@globe.net.nz]
> Sent: Friday, December 10, 1999 2:33 PM
> To:   sharechat@sharechat.co.nz
> Subject:      [sharechat] it shares
> 
> Im interested to hear people's views on the direction of IT shares over
> the next few months.  Many of the NZ it shares have generally risen pretty
> strongly on the back of buying fever in overseas markets, but the NASDAQ
> is now up by over 1/3 in about a month, and I have read predictions that
> the index will fall on its face very soon (although Ive been reading that
> about the Dow consistently since late 1997), and Im not confident that the
> high-profile ones could maintain their current trading ranges here if that
> hapened.
>  
> Do you see an overseas tech downturn anytime soon being likely, or are the
> comments being made generally pretty common on a rising market liking the
> NASDAQ is currently experienceing?

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