Forum Archive Index - October 2000

["Philip Robinson" <robph639@student.otago.ac.nz>]

Thanks for this Brian very interesting.

Phil
----- Original Message -----
From: "Brian Gale" <brigale@i4free.co.nz>
To: <sharechat@sharechat.co.nz>
Sent: Monday, October 02, 2000 12:48 PM
Subject: [sharechat] Winners & Losers


> Following on from previous postings by Sarah, Peter and Steve some
> interesting points are raised and in particular ' Are Chatters perhaps
> concentrating too much on the wrong categories ?'
>
> I would suggest that securities, broadly speaking, fall into three
categories:-
>
> 1. Sound companies with steady performances, good dividends. No
spectacular
> cap gains but no great falls either.  Can be classed as boring but provide
> steady profits to investors.
>
> 2. Special or recovery situations, more speculative but could produce good
> capital gains
>
> 3. What are commonly called ' penny dreadfuls '  Highly speculative
usually
> at low price per share
>
> Of these it is 3 that seems to receive the most attention from Chatters.
>
> Firstly I think the low $ price is an attraction - a 10 cent share only
> needs to go up 1 cent to make a 10% profit and of course you get a bigger
> bundle for your $ outlay.  There is the hope to get rich quick and
> impatience for results, so if the 'pd'  performs smiles abound, however
> because of the spec nature of this category the chance of a drop is
> probably greater than a gain ( people get scared of these stocks very
> easily and down she goes)
> But again this tends to be the most exciting category because of the
> inclusion of the so called glamour stocks.hence the attention received.
>
> Looking at category 1....... Out of a total of  49  Top 40 securities some
> 21 have shown an increase, or at least didn't fall during the 9 mths to
> date  Ten show a Cap gain of 10% or better. The Top40 Index itself  fell
> nearly 10%.
>
>
MON,BCH,WHS,INL,ANZ,UNL,WPTCA,TTPGC,TLT,GPG,SKY,LNN,NCH,TRH,AMP,AIRVB,KIPVB,
> FAP  & FFS-FEG which are really cat 2.
>
> It would seem that these should form the backbone to a portfolio but there
> is the danger of  Cat 3 becoming dominant for the reasons stated.
>
> If you wish to see the full listing for the Top40 it is appended as a
> spreadsheet.
> I haven't analysed the SCI index which would include the 'pds' , but I
will.
>
> BG


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