Sent: Thursday, March 30, 2000 5:58
AM
Subject: [sharechat] Why neglect NZ
stocks? it makes no sense
I have
been suprised that even many on this forum
have begun to buy most of their stocks from
markets overseas,
many seem to have given up on the NZ
market.
To me this makes
little sense and in some ways looks like herd
mentality which we all know is not the way to
make money in stocks.
The media etc are really talking down the NZ market this
year,
prices are now looking very very attractive so
why not buy?.
Its
irrational yet tempting to look at the better performing markets
and
and want to jump on the bandwagon , However
if you think rationally and
avoid the hype you will realise several
things.
1. Many overseas markets are now
fully priced and by entering now
the golden times
may of been missed
2. At this moment NZ has some
outstanding buys based on P.E etc
3. Nz stocks cannot really go lower
(unless worldwide crash) as the companies
will become
subject to takeover activity.
4. There is a
trend for NZ stocks to list on overseas markets, this continuing
trend will expose our stocks to more buying and
prices will rise,
5. Most importantly
FUNDAMENTALS DO COUNT , the bubble internet stock
bonanza will only last so long, what really
counts is bottom line. Earnings per
share etc are far more relevent than hype, and
the Nz market must be one of the least
hyped and under priced in the world, but times
will change and we will one day have our
place in the sun
nick
See IRG research reports
