Forum Archive Index - October 2000

[RIL <ril99_99@yahoo.co.uk>]

The US Funds purchase seems to me to be a currency
play with limited stock appreciation.

The fund may have worked out that it is only two years
until National regain the Treasury benches and the
currency will march back up over fifty in the process.
This will be a 20%er without including dividends and
any stock appreciation.

Other funds are taking a different view but I think
this purchase is correct.

However, the potential for a further fall in NZD value
of the stock is there. By all accounts TEL has been
extracting $500 m of monopoly profits from NZ'ers
since not long after privatisation. These profits are
at risk in a more competitive environment. 

Also, we know that the shareholders dividend stripped
the company leaving NZ with a third world line
network. This will cost big bucks to remedy or not fix
either way.

The line network should never have been privatised in
the first place of course but the simpletons in
parliament let it go. And we know who benefited from
that, don't we? The boys had their noses deep into the
trough.

It seemed to me at the time the company was handed
over to Gattung that it was a hospital pass and so it
has proved. Imagine the position of US funds that
bought the stock at $8 and $0.53 NZD/USD. They've lost
nearly half the value of their holdings.




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