Forum Archive Index - August 2000

[Brian Gale <brigale@i4free.co.nz>]

Your comments make sense to me Ben.  As you say the Nadaq bounces
around. When it climbs we don't see any benefit on the NZSE - they are
totally different markets. In fact I would suggest that the Nasdaq is a
unique market the likes of which have never been seen before. Fundamental
values of stocks are ignored - all is based on extreme hopes for
the future, supported by investors with minimal business knowledge who
wouldn't even know what a balance sheet was never mind be able to read it
! Forget the Nadaq and concentrate on NZ share fundamentals, unless of
course you are brave enough to trade over there. (I'm not)

BG

At 09:26 01-08-00 +1200, you wrote:
> The Nasdaq has staged a nice
> "recovery" on Wall Street today, closing up
> 103.99 points, or 2.84% to 3766.99
>
> What does this mean?  Well, nothing really - the Nasdaq is just
> bouncing
> around as usual - today it went up, tomorrow it may well go down. 
> We've
> seen an intense amount of volatility this year, and it ain't over
> yet.
> However, the chances of another tech meltdown as we saw in April are
> slim
> (but still possible).
>
> Freaking out over the Nasdaq's gyrations aren't really going to get us
> here
> in NZ anywhere - and I must say that I was quite chuffed that our techs
> held
> up so well yesterday (with the NZ market showing remarkable resilience
> to
> Friday's fall on Wall Street).  Perhaps a sign that NZ investors are
> now
> somewhat immune to volatility on Wall Street?
>
> Check out this article in Forbes - it's pretty good (from May 1 but
> still
> relevant)
>
> "Volatility Has Its Uses"
>
> http://www.forbes.com/forbesglobal/00/0501/0309066a.htm
>
> So let's keep on focusing on the companies proper - and not just what
> the
> Nasdaq is or isn't doing.
>
> I've been reading with interest the talk on ADV lately.  Personally,
> I rate
> ADV as the best tech stock on the NZSE (yawn if you've heard me say
> this
> before).  The amount of options hitting the market may be a cause
> for
> concern, but the share float is still pretty small, and their future
> growth
> prospects are phenomenal.
>
> Comments, criticisms welcome :)
>
> Benjamin Dutton
> (disc. no current holding in ADV).
>
>
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