----- Original Message -----
Sent: Monday, January 29, 2001 7:23
PM
Subject: [sharechat] Brokers Tips lagging
behind Shartchat Growth Index ....(badly)
The Sharechat Growth Index is going
well with the index up 4,6% over the last two weeks. The NZSE 40 (both capital
and gross) up 2.5%. I hope you all are enjoying watching the
progress.
In a moment of boredom (again in the Qantas Club Lounge) I
thought maybe I could use the same methodology on the brokers tips (as
published in the Herald and taken from Warner's post earlier in January) and
create a Brokers Tip Index..
Mikes 'Beat the Brokers' competition
implies that we take some small satisfaction in doing just
that...........
The brokers tips were more widespread than those of the
combined wisdom of Sharechat contributors. Therefore the brokers
portfolio needs to include 7 stocks to give a better representation of their
popular stocks in the index...
These are FFS, WHS, SKY, CEN, TEL,
FLB and AIRVA.
As with the Sharechat Growth
Index I have weighted the portfolio on the basis of the number of
selections each stock received. In the portfolio for example FFS and WHS have
a 19% weighting. being selected 5 times out of the total of the 26
times
these seven stocks were selected. This weighted portfolio therefore represents
the combined wisdom of the participating brokers.
Interesting result
after 2 weeks (12/1 to 26/1)
Sharechat Growth
Index
UP
4.6%
NZSE40
UP 2.5%
Brokers Tips
Index
DOWN 0.1%
The Brokers are ahead with SKY, CEN and TEL but
down with FFS, WHS and FLB. With WHS and FFS being the most popular and
heaviest weighted selections it's just as well I put 7 stocks in their
Index.
To date the combined wisdom of Sharechat contributors is beating
the combined wisdom of brokers - and the efficient market. .
No bother
to keep reporting progess if contributors think worth while
Peter
See IRG research reports
