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Re: [sharechat] Making money in bear market?


From: "Richard Hooper" <hoop@ihug.co.nz>
Date: Thu, 11 May 2000 02:34:16 +1200


Maybe the public of NZ + us small /medium longterm investors should hang
some of these traders & so-called investment advisers , for treason. Why
????

This theory Kausa mentions works wonders in a small stockmarket enviroment.
Unfortunately at some point these Traders / Advisors exaggerate these shares
to a point so low in price, Joe Public deserts the sharemarket with his/hers
fingers singed or burnt. Mum & Dad investors put their money, (what's left
of it), back in the bank, overseas investors ( O I ) pull out causing more
exaggerated price falls, then they ( O I ) wait for bargain basement
specials to occur. Then when things can not seem to get any worse, back in
come the big overseas investors / corporations buying up the ultracheap
companies TOTALLY, ( game over) , asset strip them or simply keep running
them as a going concern with all the large % yield dividend going offshore
and increasing the external deficit of that country. Other frustrated
companies, not taken over, but still  run a good business and are unable
(due to the current climate :-because the country's investors are now
poorer ) to improve shareholder value tend to look over the fence where the
grass is greener and move offshore
 Ring any bells.......... I bet u some small countries, including NZ fits
this picture.

In Business Theory, this is all part of the cycle ,and the worm will turn at
some stage where small local companies find their niche markets and will
begin to erode into the greater monopolistic companies, investors in these
smaller but growing local companies will gain wealth and will increase their
holdings within the market  pushing up prices ....boom follows ...  then
fade back when larger companies begin to goggle up the smaller companies
forming monopolies again and so on as the cycle spins around once more .
Unfortunately our boom is a long time in coming and is now long overdue.

Unfortunately I am talking to a small group of people who know all this, and
still invest in NZ companies and in my opinion are saving this country from
a worse fate . Being a small market a dozen large investors leaving the NZ
market to invest offshore can seriously impact a fall in both share & money
markets and vice versa.
At the moment there is nothing wrong with our markets.NZ is fundamentally
sound, our assets are grossly underpriced,and there is a more chance of an
upturn in our markets than alot of other larger market countries.
 The solution to our problems ??
 Give that Business theory cycle a pump of hot air ,because the NZ market is
overdue for a correction, not as much energy is needed to make that N Z
business cycle move to the positive as it was say 3 years ago, so if we go
out and spread the word BUY NEW ZEALAND. BE PROUD OF OUR COUNTRY something
might happen.
 NZer's rely mistakenly to Goverment for help , remember the Government are
public servents ,who are not known to be very efficient when it comes to
business , so..... we NZer's as a group have to think and work and invest
ourselves without thinking of Nanny state for handouts or nursing.
Act positively not negatively ( thinking negative as a group is a
self-fulfilling prophesy ). Don't sell ourselves short. If we don't sell
ourselves,  more people will  invest in our companies. Increased demand
increases value. When share /money markets increase value
investors/institutions will jump in so as not to miss out pushing up prices
higher and also adding overseas revenue which will help our deficit as
well.....we will all be better off as a nation. Thinking positively as a
group is also self perpetuating.
It might sound naive , but hey why not give it a go , what have we got to
lose ...nothing ...but we have a hell of a lot to gain  ... right ???

Disclosure:- I own $HEAPS + (was alot more $$ a few months / years ago )  in
NZ Stock and I don't want these Wally's talking down the market for their
own personal gain at the expensive of us honest investors ( Sorry I'm biased
:))  )

Enough of paitriotic flag waving stuff ..... why are investors afraid of
Eric and downgrading BCH,  if u  look at Eric's performance longterm as a
competitor I can't think of any achievements. ADV  was in a niche market
,the rest are tech not proven .BCH is a proven company and growing globally.
(see sharetalk site for McEwen's recommendation buy..... @ $9.75
:))))))))))       )

God bless all us red ink investors
Hoop
Dislosure again :- I do have a Marketing Degree [BMS Mktg (Waikato Uni)
grad1984 ]  Sorry  :)))

----- Original Message -----
From: Kausa Smith <kausa_smith@yahoo.com>
To: <sharechat@sharechat.co.nz>
Sent: Wednesday, May 10, 2000 4:42 PM
Subject: [sharechat] Making money in bear market?


> A highly experienced trader gave me this tip:
>
> Making money in bear market? Easy! All you need to do
> is playing bear, pushing share prices down with the
> help of public forums and chatrooms (like putting out
> warning posts). Exaggerate the falls in any overseas
> sharemarket to the extreme. Wait until everyone starts
> panicking (you will know by counting the number of
> posts for a particular time period), then some
> charties will back you up by pointing out the next
> support level. Place buy orders with your brokers with
> prices at 3% above the support level (safty margin).
> Wait for one week. Dead easy to make 25% gains he
> says.
>
> Sounds like what's been happening?
>
> Cheers,
> Kausa
>
>
>
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