Forum Archive Index - September 2001

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

Ruth

 

Read the Article, rather negative I thought, and broad ranging tarring all NZ companies with the same brush.  I agree in most part that NZ does lack good management in alot of companies ,most of which have now been exposed ,which is usually the case when times are tough. I have added www.garethmorgan.com to my favourites list. Thanks.

 

Large overseas investors regard NZ as the wild west with cowboys running around, this is imho factored unfairly into the shareprices of most NZ stocks. Govt or Securities Commission must address this area. Shrinking financial assets/experts ,are also factored into shareprices, so any positive deviation to the past performance should make NZ market look undervalued. OK not much has happened NZ restructure wise ,Govt seems to be lip reading only with this lastest conference, however looking in the revision mirror while driving forward is not a good idea neither. Small private businesses in NZ have always been dodgy .20 years ago 75% of small businesses failed within 5 years. With better accounting skills that figure is maybe slighly less today , if at all. So nothing has changed there.That article by Gareth Morgan seems dated, because one of the best performing sharemarkets this year is NZ, so why would you invest somewhere else ..it is illogical.  I don't know what the "true"P/E average of NZ stocks is ( unfortunately and frustrationally all figures are different) but I know there is a number of growth stocks that are under 15 some even as low as 6 to 7(DPC). Gerry talks about BCH ..huge growth company P/E 50 something ..great company well managed ..well worth the investment ..but there are other gems in NZ as well but not discovered yet because of negativity,hence their low P/E.

It may come as a surprise but I was called a pessimist in 1986 for exactly the opposite reasons.   :))

 

I assume you mean FFS not FRF.

God knows whats happening here. Latest result has shown up what the Directors could hide and get away with (legally) during the last few years ... As a result  alot of mum & dad investors in the past have had their lives ruined by these people.  Now the truth is out, the books wiped clean ??? we are led to believe, and FFS starts a new life. I am still none the wiser if the company is operating successfully, as some of the old guard is still hanging around, and on past performance  I can't trust them. I took a punt that FFS was going to be bought out.. .bought shares at 67c got my fingers burnt. OK my fault... its called greed...However overall a very non-transparent company, so no surprise that investors are playing musical chairs with this stock. Also cyclic low commodity prices and the mystery over the Citic / CNIFP squabble doesn't help neither.

 

No idea who is buying these dumped shares, surely if it is one or two institutions we would have known through the declaration of holding if more than 5%.

 

Maybe Gerry can help us with this problem

 

I may be paranoid .....but why is this years FFS booklet called an annual REVIEW when nearly every other NZ company calls it an annual REPORT. OK.. its an attempt to make the company more transparent , but if analysts think the NTA is valued around 50c/share why is the present market value 30c/share????. Uncertainity springs to mind.

 

Reading the Chairmans Letter he states with the opening sentence...quote..."' The company's annual result detailed in this Review is unacceptable but was largely unavoidable. "  

   Sorry Sir Dryden ...you lost me there,... not a good start to your annual review... However you can feel proud as being the man behind the wheel of a company who has just recorded the biggest annual loss in NZ history. (and I'll bet you say that its not your fault)...unavoidable :)))

 

For me I got around the FFS loss problem by buying Rubicon.

 

Hoop

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

From: Ruth Ayling

To: sharechat@sharechat.co.nz

Sent: Wednesday, September 05, 2001 1:34 PM

Subject: Re: [sharechat] dpc

Hi Richard,

Thanks for your info. In your previous post you said

>what a gutless wonder NZ investors are...

Fair comment, but the abysmal management of many NZ companies doesn't inspire confidence- this is a major problem, I think.You might like to take a look at the articles 'The dog that is the NZ Sharemarket, & Be patriotic, send your money abroad' on www.garethmorgan.com

 

I see you are holding FRF; so am I. Have you noticed the turnover lately(1.4mill yesterday, I think)? It seems that everytime the price goes up a cent or so a huge parcel is dumped on the market, forcing it back down.Interesting...

Regards,

Ruth