Forum Archive Index - September 2001

["Richard Hooper" <hoop@ihug.co.nz>]

Hi Ryanrite.

 

Yes looking after Think Big Bill :)) ...mind you I cringed a bit when his name came up as a director for DPC as he has be mixed up with a number of political disasters in his day . I hope he has used up his disaster quota.

Yes ..don't forget the outside world and yes we NZers should invest globally, it is the way of the future as increasingly number of countries are freeing  up their business borders. I referred in my post my disgust ..more ..towards the financial flight of money especially last year when brokers and other media tried very hard to get NZ investors to invest in major overseas overcooked markets while our NZ market looked underdone and made worse by the mass sellout.

This flight effect may take years to correct as alot of this flight money has now evaporated due to the correction of the Major world markets, leaving NZers as a whole worse off. The timing was bad and even in hindsight, surely people & especially financial persons must  have known that  after 8 years of Bullmarkets a bear must surely be overdue to arrive, and advised their clients accordingly.

Also remember NZ and to some extent Australia always seem to be out of kilter with the major markets. Historically when USA Europe are slumping NZ is upturning and vice versa.

 

Note ....I am a medium to longterm investor in nature.

 

Why am I accumulaing DPC ? 

A small company which tends to be overlooked by many . Has had 5 years of growth.. some years large growth. Many of its 19+m shares are locked up causing periods of surplus/scarcity of shares which in turn causes large swings in price to occassionally  occur. Yield about 7%(imputed) P/E  around 6  these numbers are exceptional for a company in growth mode. Since the price is imho very low I am accumulating. Sooner or later whether it is tommorrow or 2 years down the track this company is going to be noticed with a resulting herd stampede into a share which is only available in small numbers ...resulting probably in a rather quick rise in a small period of time...I want to be there when and if this happens ..Patience needed.

 

CAH?

This compamy is a typical commodity nightmare for me ..Invested when things looked bad in 1998 with Asian crash ..problems then with high debt and perceived poor management. Bought  more shares when they sold Copec & Trupan, which eased there dedt level and allowed to aquire businesses in Australia/Asia. (the share did not change much with this positive move). Now with wood products all being at their cyclic lows all at the same time ( a chance in a million?) CAH is doing imho bloody well considering. So when the upturn begins CAH should be well positioned to take full advantage. Keep takeover target in the back of your mind as well. Will shares be any cheaper ?  $1.60 seems a major resistance point. so I am buying now and will wait..Patience.

 

GPG ?

 I am regretably a late entry to this fine company which I think speaks for itself. IMHO it was harsely treated during the Tech boom as a company run by the old school , like Buffet and co there was a perception that these guys had had their day.  In hindsight it was the Techees who had had their day and Buffet & Co including Brierly  who all had money in the bank and keeped away from this Tech madness are still here and stronger than ever. GPG price has risen alot but still imho undervalued ... remember this is a high growth/safe company so why shouldn't we have shares in it. It should make up a major proportion of any portfolio...as my portfolio is understrength in GPG I am accumulating.

Hope this long winded response answers your enquiries Ryanrite.

 

Cheers

Hoop

 

PS   I am regreting selling out of STU. think I sold too early here.

The other stocks I sold on ( AIA  BCH  SKC) are top quality stocks.. Don't get me wrong. I sold these stocks after +60% profit on my portfolio.

( money or the bag?... the MONEY!!! )

----- Original Message -----

From: ryanrite

To: sharechat@sharechat.co.nz

Sent: Tuesday, September 04, 2001 1:40 PM

Subject: Re: [sharechat] dpc

Well done Richard,

                            Dealer or no dealer I like to hear some positives about the markets. Also interesting to hear you looking after Bill B  (after think big )

You are right NZ shares are doing well but I think the market can not go against the rest of the world.

Maybe in for a correction soon?

Nice of you to tell of your dealing and holdings this should be talked about and done more often.

Maybe you could tell us why accumulating these shares and when do you think they will move up

I enjoyed your read 

thanks

----- Original Message -----

From: Richard Hooper

To: sharechat@sharechat.co.nz

Sent: Tuesday, September 04, 2001 2:55 AM

Subject: [sharechat] dpc

Dorchester announced today the acquisition of Lynx Finance for $7m  paid in cash ( no loan ).

Fantastic news ...as the directors are doing what they are saying ( refreshing news ) ....DPC is a growth company with increased profits each year .  This announcement out this morning ...and guess what ...DPC down 1cent (0.9%)...absolutely terrible ..what a gutless wonder  NZ investors are, in this country which is at the moment, one of the top performing economies of the world (probably by default  :))  )  , and a top class small company  growing bigger all the time is totally ignored by everyone ......

Well.... all I can say is .... Don't cry foul when all of a sudden NZ market takes off and leaves all the (negative) talk and no do woolly woofters  behind.  Nice to see many of them being burn't investing overseas, when NZ where they live, is taking off . Sucking money overseas and watching it burn ,when it could have been invested in NZ, only makes NZ poorer overall. I say let these Financial Traitors burn in Hell.( I do believe in overseas investment and a Global economy ..don't get me wrong ....however, what I hate is that herd mentiality stamping off into the the sunset of the so-called infallible USA Market at a time when it seemed I was the only one that knew that that Market was overcooked more than the Xmas turkey found in the oven on News Years Day.

 

Hope this generates a few responses out of this increasingly boring channel.

 

Ducking for cover

 

cheers

Hoop

 

Disc... own DPC  ..My Portfolio is 100% NZ owned and doing bloodly well this year ..up  38%  would have been more if I hadn't got seduced by sharechat  eg AQL (Sold with 95% loss) ITC FFS FRU.( still hold and hoping)

The Stocks to buy are the ones not commonly mentioned by Sharechatters .  Biggest gainers in my portfolio so far   WRI  RBC GPG REI CEN   recently sold SKC  BCH  STU  AIA  ,

Holding BRY (down 10%), accumulating CAH( 15% loss so far, av down), accumulating DPC, accumulating GPG . And a couple of others which I will not mention just yet.....sorry.. :))