Forum Archive Index - February 2000

["Ben Dutton" <bendutton@sharechat.co.nz>]

Hi Brendon,

Yes it's a possibility, but the quote you gave omits the fact that the
Nasdaq index kept on breaking all records last week -- it closed at a record
4,485.63 on Thursday -- an absolutely stunning performance that was largely
driven by the Internet sector.

Friday's action on Wall Street was a bout of old fashioned profit taking --
which is far more healthy for the market as a whole than a continuos upward
momentum, and absolutely natural considering the gains that had been made
during the week.

Now the NZSE hasn't really followed many of the Nasdaq's gains this week --
and our tech sector has proven pretty resilient against any "dips" on Wall
Street.

Lets not get to worked up about this small drop, we've seen it before this
year and I'm sure we'll see it again.  As James Cramer says on
TheStreet.com, he loves it when his favourite stocks take a hit, because it
means another buying opportunity!

ITC is an interesting situation.  There's obviously a very, very large
discrepancy between what people in the US are paying for this coy ($1.05 per
share) and its closing price here in New Zealand (80c).  All you arbitrage
traders out there take note -- we'll either see the share jump up on Monday
morning to the level traded in the US, or it will stay around the same level
and come Monday US time, we'll see the share price over there fall to the NZ
level.

Interesting times nevertheless!  Any other views?

Best Regards,

Benjamin Dutton

P.S. I hold shares in ITC.

----- Original Message -----
From: brendon peters <bndpeters@postmark.net>
To: <sharechat@sharechat.co.nz>
Sent: Sunday, February 13, 2000 4:33 PM
Subject: [sharechat] Pressure on all NZ tech stocks tomorrow?


> I suspect that we will be seeing a lot of profit-taking on our local
> tech stocks tomorrow (Sorry Ben Dutton, I think even ITC can expect a
> few problems tomorrow)if the following excerpt from a Reuters report
> is anything to go
> by:
> _____________________________________________________________________
> _
> Dow index in correction zone, Nasdaq also slides
>
> "The Nasdaq dropped 2.0 percent yesterday as investors, tired of
> Nasdaq stocks, began to take profits, and dealt a blow to the market's
> strongest sector.
>  "You are seeing profit-taking in the high techs," said Alfred
> Goldman, technical analyst at A.G.Edwards and Sons in St. Louis.
>  "The question is whether it is going to last a couple of days or a
> couple of weeks," he
> said.
> _____________________________________________________________________
> _
>
> I have noticed for a while now a familiar pattern each Monday on the
> New Zealand stock market, where the events on Wall Street (over the
> weekend) seem to dictate the actions of investors. I suspect there
> will once again be lots of selling...and little buying tomorrow.
>
> Any views?
>
> Brendon
>
>
>
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