Forum Archive Index - October 2001

["geoff_julie" <gk_jawalker@paradise.net.nz>]

Hi all

 

must be time to hear some comments on NZ companies that are performing well, and not so well.  I'm getting bored with the Dow, debt collectors, ITC (has to earn a ShareChat award for one of the most chatted yet one of the worst performing stocks) and other's!

 

Anyway, IMO don't invest in companies that;

• promise much and deliver little,
• employs spin merchants, or manage themselves to produce seemingly endless "positive" statements that in reality are not worth the paper (or email) they are written on,
• pay enormous salaries and bonuses to management and directors for consistently poor returns,
• dream up grandiose schemes to enrich shareholders that inevitably fail,
• deliberately fail to inform the market of problems and can't find solutions to fix them.

I've punted and lost on some of the best; ITC, ADV, CSG, RMG, and to a lessor degree TEL.  Fortunately, I bailed out of all the companies with my shirt, unlike others I suspect.

 

What have I learned from these expensive mistakes?  Invest in companies that have good management, a proven track record of profitability, honesty and integrity, innovation and desire to succeed, and finally a real product or service (I would also recommend researching, researching and finally researching before buying any shares in a company).

 

IMO some companies worth investing in; STU, FBU, BCH, EBO, SAN, RBD, HLG, POT, REI, to name but a few.

 

Anyway, just a few thoughts on a miserable wet day.  Happy investing!

 

 

Regards

 

Geoff

 

ps    My bouquet for the week goes to STU.  Can't add value to their Canadian operation so they sold it to concentrate on NZ & Ozzy operations where they can add value.  Are they releasing funds to buy FBU's steel division?

 

disclaimer:  hold EBO, MDZ, RBD, SAN, ozzy CML and STO.