Forum Archive Index - October 2001

["Phil Boeyen" <pboeyen@sharechat.co.nz>]

Hoop

 

Interesting comments, in particular looking at what part investors are playing in the wipe-out of quality companies from the NZSE.  It makes me wonder whether New Zealand investors - generally speaking of course - have far too much of a short-term view of their investments which pushes them to drop a stock or pick one up every time even a minor earnings-related announcement is made.  Where did this mentality come from?  Is it the Brierley corporate raider view which has become a permanent part of the NZ investor psyche?  Certainly the latest offers seem to have people rethinking and the comments regarding Frucor - that people don't plan to sell because they want the company to remain listed here - are encouraging and in contrast to the Contact offer where I perceive investors just want EME to pay a higher price.

 

This lack of longer-term commitment from shareholders means there are considerable swings in company values and is definitely giving foreign companies the confidence to waltz in and offer prices which they can claim are at sizable premiums to recent trades (although these so-called "premiums" need to be looked at closely in light of the worldwide slump in equities following the US attacks).

 

What do others think?  How much blame should be placed at the door of the NZ investing public's mentality or is this a chicken and egg situation - if we had better companies people would be taking a more long-term view of things?

 

Phil

 

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

From: Richard Hooper

To: sharechat@sharechat.co.nz

Sent: Thursday, October 25, 2001 11:50 AM

Subject: [sharechat] Garage Sale

Sad time for NZ, which overtime will affect the NZ economy.

 

Our stocks are trading too cheaply, as reflected by the recent buyout behaviour.........trend is typical of a neighhood garage sale......get in early for the bargains......whats left at the end of the day for the garage-seller is a pile of junk that no-body wants and you can not even give it away.

It will take years of hard work by all concerned in NZ to rebuild  company assets back up and regain foreign investors interests that are benefical not destructive.

 

Who do we blame for this?

 

EVERYONE    from Present/Past Governments ..Treasuries...top company execs strategy planners..analysts..sharebrokers .. stock exch..investors.. even us..driving down prices due to a decade or two of negative attitudes and dated  economic, law and other overall society systems.

In affect  all NZers as a collective society  are partly to blame for the eroding of our economy...It seems that it will only take a major crisis to wake everyone up to be able to effect a change in our flawed systems..perhaps this minor crisis is the start for better things ..lets hope so

Very concerned

Hoop