Forum Archive Index - January 2000

["Mike Hudson" <mikehudson@clear.net.nz>]

Michael Corleone wrote

There is a great article in today's NBR entitled "Stock Exchange fails
to address punter crisis".
Between 1991 and 1998 $13 billion of value for shareholders has been
destroyed. This during the biggest stockmarket boom in history........etc

When Michael speaks you a show a him some respect ,capiche ,or you finish up
feedin da fishes.

Unfortunately he is right, the only life in this market at the moment is in
these pathetic little wannabe tech stocks ramped up by a clique of sleazy
get rich merchants who are taking the punters along for a one way ride.
There has been a lot of discussion this week ( and I must sat it is
refreshing to read some serious debate about a real company) in this  forum
about NUF and its falling share price. Nobody however has talked about the
obvious reason for its decline - its name. Why call a company "Nufarm" -
boring boring! If they had called it Inferon.com or Fernz.net the punters
would have been flocking and the share price would have been at least $10 by
now. Yes I can quickly trivialise a serious debate.

BTW does anybody see the similarity between the current tech frenzy and the
NZ  oil companies boom of the mid seventies? They were great days - for a
while.

Seriously I believe that any sensible investor should be looking offshore.
Personally I have reduced my NZ holdings from 80% of my portfolio to 40% in
the last two years. One of the problems for the NZ market is that everyone
and especially the fund managers have been doing the same. What has been the
impact of  this capital movement on the NZSE and the current account.? It,
together with the lack of interest by overseas instiutonal investors in our
markets must be a  huge factor in the current malaise. Will this trend
reverse itself in the near future - I doubt it. We're doomed I tell you!

Having said that I do not intend to reduce my exposure to NZ much further as
I see our market being reasonably defensive in the event of a correction in
the US, Europe and Asia.

Has anyone any thoughts about what proportion of say a mildly agressive
portfolio should be in NZ and what proportion overseas and where?

Cheers
MikeH
PS Deep throat is saying today, Sell  NZR at $9.42













----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
To remove yourself from this list, please us the form at
http://www.sharechat.co.nz/forum.html.