Forum Archive Index - March 2000

[frank <frank.fernandez@xtra.co.nz>]

Yesterday Hugh mentioned about daytrading and Telecom, and some
Sharechat subscribers were of the opinion that the returns weren't
enticing enough from blue chip stocks.
Under normal circumstances, I would agree but on "special occasions"
such as the release of pleasing financial results or other improvements
to a company's business, there is often an easy 10-12% gain to be made
from blue chip stocks. 
I wrote some weeks ago about the then impending Telecom results but
apart from Hugh valiantly trying to generate interest in Telecom on one
of the message boards, there wasn't any interest from anyone else. I
guess the entry price of many blue chip stocks appear prohibitive but
still, there was an easy 12% return to be made in Telecom's case, not
bad for a short-term investment......which leads me to Mark Hubbard's
posting a couple of days ago seeking information on The Warehouse which
is due to release its half-year results tomorrow.
>From all accounts Mark, this promises to be an extremely good one for
The Warehouse with probable news of increased sales of about $600
million for the period, $86.1 million above that for the corresponding
period for the previous year or a 16.7% increase.  For the first time
too in any 12-month period, The Warehouse is understood to have rung up
more than $1 billion of sales in the 12 months to 31 January 2000.
Another possible anouncement tomorrow is The Warehouse's launch of its
joint banking venture with the ANZ in which services will be marketed
under the name "The Warehouse Bank."  A similar partnership in Australia
between Woolworths and the Commonwealth Bank of Australia has already
threatened to shake up banking services across the Tasman.  And in
Britain, major retailers have also made an impact through banking
partnerships which has seen them offering mortgage, insurance and credit
card services. 
The Warehouse may also well choose tomorrow to give an update on its
major push into online stationery sales - a move that sees it competing
head-to-head with Eric Watson's Blue Star Group. All in all, another
blue chip stock that will attract lots of investor (particularly
institutional)attention tomorrow. 
So there we are Mark! Hope the above information will be of some help in
your investment deliberations - and help you finish the week off on a
profitable note.

Cheers,
Frank

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