Tuesday, October 17, 2017

Share Market Not Like it Was 30 Years Ago

Image result for 1987 stock market crash newspapers in new zealand herald
Looked for photo in the Herald but could only find this one. Picture tells a thousand words.

The question raised by most pundits this week is will the 1987 share market crash that happened in this country on the 20th October 1987 and in the rest of the world the day before happen again?

I would contend its not when it will happen because it will.

I don't pretend to know just when it will because I don't know.

Lets be clear, the reasons for the 87 crash were varied and wide - depending on who you talk to - but the reasons in this part of the world were a lot different to those in the Northern Hemisphere.

Here apart from anywhere in the world we were going through a vast transformation. 

Business was moving and becoming clearer and cleaner. Restrictions to all business were removed and we were at the centre of a global experiment which was being watched from Wall Street to Fleet St and then tried there in the 1990's and 2000's. 

NZ INC was closed one minute - under Rob Muldoon and then open the next day thanks to Roger Douglas.

Capital moved in from overseas then we were in the grip of a financial tsunami, the likes of which we hadn't seen before.

And what did people invest in?

Bugger all really.

Most of the businesses floated on the stock market at that time had very little to do with real business and those that were doing "good" business were taken along for the ride.

Unfortunately these good businesses were taken down on the 20th October 1987 along with the other ones that shouldn't have been listed in the first place.

Fast forward to today when we have restrictions and various rules around investing on the NZX - there are certainly not enough but its getting there.

The share market is a vastly different space to what it was 30 years ago.

We have companies that actually make money and for the ones that don't have yet it is in investors hands whether they stay or go. 

It is largely up to the investor how much risk they are will to take or make.

BUT and it is a healthy but. There has been risk as long as there has been 2 people willing to trade with each other.

Inherently there is greed and that is the key word and there is no way you will ever get around it.

As long as we have greed and avarice we can be assured that we will have another share market crash.

Just when?




Share Investor Reading

New Zealand Stockmarket: A History from beginning to present day. 
Stockmarket Education: How do you buy shares? 
Stockmarket Education: What is a Share? 

Stockmarket Education 

Stockmarket Dictionary 
Stockbrokers: What you should know before choosing one 
10 Basic questions to ask before investing 
How the Stockmarket works 
Understanding Risk 
Watch Your Risk Tolerance 
Stockmarket Education: What is a Share? 
What Moves the Stockmarket? 
7 Signs of Shareholder Friendly Management 
Financial Media For Investors 
Dividends in detail 

Related Links
 

NZX - How to Invest 





c Share Investor 2017






Wednesday, October 11, 2017

Fisher & Paykel: The Biggest Listed Company in New Zealand

Growing demand for Fisher & Paykel Healthcare's products have been keeping its Auckland manufacturing plant busy.
Technology has overtaken tourism at the top of the NZX, with exporter Fisher & Paykel Healthcare ousting Auckland Airport as the country's most valuable company.

Note from Share Investor: Was taken on a ride with this one over the last 5 years and I don't think its finished yet.
In one way or another its fate will be determined over the next few years not so much by Fisher and Paykel [FPH.NZ] but they will continue how they have done business since year one, that is without fear or favour of anything political. They will just get on with business regardless but politically the share FPH is definitely in favour.
Watch for a big rise in share price if Winston Peters goes with either left, left, left of centre Labour or left of centre party National tomorrow or Friday or whenever he feels like it. 
Look for the dollar to reach lows next year if Winnie the Pooh gets his way and the dollar is somehow uncoupled from the mood of the economy. As it has been for many decades now then the sky is just about the limit for this share. 
I could be proven wrong but something tells me 3 million dollars for every movement per cent in the dollar is the figure.
F & P have forward cover for this but as soon as this is used all bets are off.




F&P Healthcare shares have been on a five-year bull run as the company has expanded its hospital and home sales of medical devices that treat breathing disorders.
The company is now worth $7.446 billion – a few hundred thousand dollars more than Auckland Airport which was relegated into second place on the NZX at the close of trading on Wednesday.
F&P Healthcare shares have been boosted in recent weeks by a decline in the value of the New Zealand dollar, which has the effect of boosting its export revenues and profit margins.
A decline in the Kiwi that followed confirmation of the election result on Saturday has helped provide the impetus to take F&P Healthcare over the line.
Shares in the company closed 17 cents higher at a record high of $13.05 on Wednesday, while Auckland Airport shares had slipped 2c to $6.24 just before 5pm.
F&P Healthcare shares had a small wobble last year.
One cause was concerns over the President Trump's threats to renegotiate a trade agreement with Mexico – where F&P Healthcare has its American manufacturing base.
Another was concern over tit-for-tat patent litigation by Californian Resmed.
Resmed said the New Zealand firm's masks, designed to treat sleep apnoea, violated its patented technology after F&P Healthcare launched its own litigation.
Nerves about the litigation may have been calmed after a German court suspended Resmed's two patent proceedings pending the outcome of a European Patent Office decision over the patents. 


Fisher & Paykel Healthcare @ Share Investor

Share Investor Portfolio @ Oct 11 2017

Fisher & Paykel Healthcare Ltd: Where is it Going?
Fisher & Paykel Healthcare Ltd:  Should I Buy Now?
Fisher & Paykel Healthcare Ltd: The Time to Buy
Share Investor's 2012 Stock Picks
Global Market Sell-Off Stocks: Fisher & Paykel Healthcare
Resmed takes market share from Fisher & Paykel Healthcare
Resmed kicking Fisher & Paykel Heathcares butt?
Share Price Alert: Fisher & Paykel Healthcare Ltd
I'm Buying: Fisher & Paykel Healthcare Ltd
Share Investor's Total Returns: Fisher & Paykel Healthcare Ltd
Share Investor's 2011 Stock Picks
Stock of the Week: Fisher & Paykel Healthcare Ltd
Fisher & Paykel Healthcare & the US Dollar
Mondrian Investment Partners take stake in Fisher & Paykel Healthcare
Fisher & Paykel Healthcare: 2010 Full Year Profit rests on Foreign exchange movement
Long Term View: Fisher & Paykel Healthcare
Stock of the Week: Fisher & Paykel Healthcare
Analysis - Fisher & Paykel Healthcare: FY Profit to 31/03/09
Schroder Investment Management takes big Fisher & Paykel Healthcare stake
Long VS Short: Fisher & Paykel Healthcare
Big Fisher & Paykel Healthcare trades a curious tale

Why did you buy that stock? [Fisher & Paykel Healthcare]
Drinking and Trading
Share Investor's 2008 stock picks
Fisher & Paykel: A tale of two companies
FPH downgrade masks good performance

Discuss FPH @ Share Investor Forum
Download FPH Company Reports





Share Investor 2017