Forum Archive Index - March 2000

[Derek Watt <dkw@paradise.net.nz>]

At 07:52 PM 3/15/00 +1300, you wrote:
>8c, close is friday, pay day is early april i hear, which puts off some
>nzers for higher tax then due to recent gov change
>

Its hard to explain the recent fall of about 40c in flb in terms
of a 8c dividend !!!

Maybe the recent interest rate hike by the reserve bank
has been interpreted as dampening down the building market 
& slowing down the economy.

Maybe more overseas investors have just had enough of the NZ market
and are bailing out like the rest. Maybe the market only feels
secure when the P/E of a industrial stock is below 10.

Whatever reason, today I'd had enough, bailed out of flb at 194c
and put the money into itcod at 49c, far better prospects for
spectacular growth. With no apparent backstop on flb, why
back it over others which have better prospects?
Ironically I chose flb because I thought it was a 'safe' stock-
the jokes on me.

Have I carried out the classic manouver of getting out at the bottom?
The share price of ITC and FLB will tell in the longer term.
I last held ITCOD at 51c , got out just in case of further falls,
but now it seems safe enough to get back in.

(other favourites recently WDT & LKO)

bye all,
Derek W


-----------------------------------
Derek Watt
http://members.tripod.com/DKWatt/
-----------------------------------




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