Forum Archive Index - July 2000

["Mark Hubbard" <mhubbard@es.co.nz>]

 

Thanks Tony, that was very interesting. I have actually purchased half of my planned holding in this stock today, based on fundamentals - I believe it has the capacity, based on fundamentals, to give a very good return over the next two years (and I would even stick my neck out to say it will get a boost when it reports its 2000 result at the middle of August (its mid year result was up 7% on the same period the previous year), and in my opinion it has only slid owing to its link to the internet music retailer sanity.com.au (SDC on ASX) which got hit when the bubble burst (taking BRZ in the slipstream). BRZ itself is a very successful bricks and mortar retailer (last year a 42% return on equity, will be up this year).

 

The depth figures though were worrying me, and interestingly, your chartist analysis gives another dimension which would seem to support their implications (although I feel very uneasy about charty stuff). So, I'll use a bit of ying and yang (is that what its called) and follow the charts to say I'll wait a bit before purchasing the next half.

 

Thanks for the time and cheers

 

Mark

 

 

 

From: Tony Haddon

To: sharechat@sharechat.co.nz

Sent: 5 July 2000 8:40 PM

Subject: [sharechat] Chartist challenge Voodoo dept replies

Mark, from a technical viewpoint alone, I reckon the only factor impeding BRZ's retreat from this week's rally to 2.14 and further on it's merry downtrend in the short term is the bullish wee rally across the board on ASX, where higher closing stocks have outnumbered lower closes for 5 days (I think it's 5, I haven't looked at today's data yet). There's 147,000 shares on the bid, 86,000 offered, that's also a bright spot I suppose, but it's not a stock I'd be rushing out to buy tomorrow anticipating a quick gain.

 

Regards

 

Tony Haddon