Forum Archive Index - January 2002

["Chris Castle" <c.castle@paradise.net.nz>]

Geoff,

 

Hear hear -  I couldn't agree more.

 

Charts tell you something about (historical) investor behaviour, but what's more important is what is happening with the company itself - that is what defines the future.

 

IMHO, use both sets of data to improve your chances and rely on some good luck as well.

 

Regards,

 

Chris Castle

 

 

 

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

From: geoff_julie

To: sharechat@sharechat

Sent: Wednesday, January 02, 2002 10:21 PM

Subject: Re: [sharechat] any bored chartists?

Hi Jefley

 

 

I'm no chartist and to be honest I don't believe that chartists can provide you with any accurate predictions either.  I have used the Xmas break to read some excellent books written by some of the legends of Wall St (One up on Wall St, Common Stocks and Uncommon Profits [Philip A Fisher], The Intelligent Investor [Benjamin Graham, the acclaimed leader of investing if Warren Buffett and co. are right]).  Without fail they ALL recommend that investors IGNORE charting and concentrate on the fundamentals of a company.  You refer to STU as a sell due to a trendline on a chart.  What about the fundamentals of the company?  It's no secret that building permits issued are way up, new farm buildings are being built all over the south island in steel, new infrastructure for schools & hospitals, etc., etc.  Are these factors not worth considering when buying or selling shares?  What about the fact that STU has low debt, high dividend payout, good management, low PE, etc..  IMO they are probably a buy not a sell!

 

The point I'm trying to make is that you should analyse NZR and SOE not by drawing an imaginary line on a chart but research their profits, future profits, management,competition, debt, etc.  Once you have done this then you can make an informed decision based on facts.  

 

 

Regards

 

Geoff Walker

 

disclaimer    hold none of the above