Forum Archive Index - September 2000

["John and Beth Schwartfeger" <timestwo@xtra.co.nz>]

I have difficulty understanding why certain shares move in value.

Take Warehouse. The talk of them moving into Aus. made their share price rise. That I can understand as it broadens their income base. However, on talk that they might be going to buy K'Mart (I think thats what I read) their share price did a nose dive. Granted it has pegged back again but none the less the movement was there. Surely if competition is removed here that should have a positive rather than negative impact on share price.

Now I see here that RBD might be taking over Cobb and Co. Would one therefore assume that would have a negative effect on share price. (Hypothetical exercise)

I seem to guess the directional movement of shares wrongly upon different announcements being made.

Any ideas or comments?

Thanks..John.