Tuesday, February 10, 2009

Key keeps his head while others channel Chicken Little

Nothing could be more appropriate than to say about John Key but "right man right time".

Key's financial and business experience is shining through.

The cool head approach that National are pursuing in relation to the current financial crisis is in stark contrast to the Labour Chicken Little's in opposition who are bleating to rush in poorly planned stimulus packages that simply will not work.

We all know that the US bank bailout from late last year didn't work. Obama is passing a new one in 2009. The first one wasn't planned and was rushed.

Labour playing politics with the current economic situation is nothing but more of the same petty schoolboy tactics that sent New Zealand into recession almost a full year before everyone else.

For Labour to say National must be shouting its "stimulus" intentions from the rooftops to reassure the populace is politics for the brain dead and most of us have one thank you very much.

It should be bloody obvious that National are taking the current crisis seriously.

They are taking action rather than talking. Cutting back frivolous spending that Labour has introduced (like fruit baskets daily for all MPs! and a long embarrassing list of other waste) is evidence of that and there will be more considered action introduced as the days, weeks, months and years of this crises play out.

John Key is in his element, he looks comfortable, confident and in Parliament today got the better of the opposition.

He stands out here head above shoulders from other world leaders.

Thank god New Zealand voted him in, the alternative would have been scary.

And catastrophic.


c Political Animal 2009


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Scam Watch: Optionetics (UPDATE)

You may have noticed that I use Google advertising on the Share Investor Blog.


I use it because it is easy.

I have now blocked the offending advertising thanks to a reader, please let me know if you can still see them in a URL I haven't thought of.

There is one ad that keeps coming up and I must warn my readers about the company.

It is an options trading package that is over hyped, overpriced and underwhelming.

You can options trade by simply doing it yourself or perhaps buying a book and learning.

The company is called Optionetics and the ad will appear with your local URL depending on the country you are viewing this on.

Long-term readers of this blog might like to know that Philip MacCalister, he of Good Returns and a whole host of other financial websites and a rather underhanded individual when it comes to competing with me, is still spamming me with emails and the latest one was spruiking Optionetics.

Here is the link and the content of the email.

Mind you you cant expect much from a man who endorsed Bridgecorp and a whole host of other failed finance companies.

I DO NOT endorse Optionetics and would advise my readers to take a very wide berth of that company and anyone pushing it.


Related Links

Consumer.org.nz - Consumers take

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Fishpond


c Share Investor 2009


Long vs Short: Pumpkin Patch Ltd

http://chart.bigcharts.com/custom/fairfax-com-nz/chart.asp?rnd=0.3338466193181723&style=2242&symb=PPL&size=1&type=64&time=4yr&freq=1dy&comp=&compidx=NZ50G~1392984&ma=&maval=&lf=&lf2=&lf3=&uf=16384&arrowdates=&arrowlegend=&country=NZ&sid=162937


In this fifth installment of the Long vs Short series I am once again going to take look at the chart comparisons for a stock from the Share Investor Portfolio and compare the 4 year return (above chart) (PPL listed June 15 2004, so I cant give you a 10 year period like other stocks in this series) to the turmoil of the last year with a 1 year return chart (large chart at bottom of post).

In this series I want to show the merits of investing, using charts, for the long-term vs short term gains or losses. I will use the longest available data to me for the long-term view (10 years )and will make a comparison against the NZX50.

In the fifth of this segment of Long vs Short I will take a look at Pumpkin Patch Ltd [PPL.NZ]

I currently hold 5000 Pumpkin Patch shares after buying 1000 in August 2006 and have added more since then to take the total to 5000 (see small chart below for detail)

Now this is one of the worst performing shares in the portfolio so I expected a poor result for my shareholding which spans about 2.5 years.

I was right!


My Portfolio

Symbol
Price
Value
Earned
$0.900
$4500
$-8200
You own 5000 [PPL.NZ] shares
purchased at $2.54 [$12700]

If I had held this stock for a full 4.5 years of company listing (see large chart at top) my return would have been 60%-including dividends, tax credits and minus brokerage, the NZX is a gross index of stocks.

By comparison if I had held the stock for just one year (see large chart below) my return would have been a loss of just under 30%.

My total return after 2.5 years or so is a loss of 64% (see small chart on left) That is after dividends and tax credits are added and brokerage applied.

When I initially started this edition of the Long vs Short Series I was expecting to see the long-term return to be negative because the stock has really been hammered. If you were lucky enough to participate in the June 2004 IPO at NZ$1.25 you would still have had a 60% return after collecting the dividends and tax credits, even though the share price ended at 90c today.

Long is still winning after five editions of Long vs Short.


http://chart.bigcharts.com/custom/fairfax-com-nz/chart.asp?rnd=0.3338466193181723&style=2242&symb=PPL&size=1&type=64&time=1yr&freq=1dy&comp=&compidx=NZ50G%7E1392984&ma=&maval=&lf=&lf2=&lf3=&uf=16384&arrowdates=&arrowlegend=&country=NZ&sid=162937



Pumpkin Patch @ Share Investor


Pumpkin Patch Buyback shows Confidence in the Future
Pumpkin Patch takes a hit
Pumpkin Patch ripe for the picking
What is Jan Cameron up to?

I'm buying
Why did you buy that Stock? [Pumpkin Patch]
Rod Duke's Pumpkin Patch gets bigger
Buyer of large piece of Pumpkin Patch a mystery
Pumpkin Patch a screaming buy
Broker downgrades of PPL lack long term vision
Pumpkin's expansion comes at a cost
Pumpkin Patch vs Burger Fuel
Pumpkin Patch profits flatten
New Zealand Retailers ring up costs not tills


Long vs Short series


Fisher & Paykel Healthcare

Mainfreight Ltd
The Warehouse Group
Sky City Entertainment

Related Reading

Pumpkin Patch financial data


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c Share Investor 2009

Sunday, February 8, 2009

Follow Share Investor's Portfolio: Edition 2

It is about time we took another look at the Share Investor Portfolio. All this market hurly burly surely must have made a significant difference right? Last time we took a look on November 24 (or see portfolio below the current one).

When we compare it with the latest update from Thursday 5th Feb market close we can see that the portfolio is actually mostly marking time, if not slightly up.

The biggest gainer in the portfolio Sky City Entertainment, [SKC.NZ] is up and the biggest loser, Pumpkin Patch Ltd, [PPL.NZ] is even stevens.

I don't look at the Share Investor Portfolio all the time-apart from being depressing you all know that I am a long-term stockholder-but after a 2 month comparison things really don't seem that bad at all.


Share Investor Portfolio @ 5 February 2009

ASB Capital No.2 0.80(0.00%)
Auckland International1.90.02(1.06%)
Briscoe Group Ltd0.80.03(3.90%)
Fisher & Paykel Health3.29-0.05(-1.50%)
Fletcher Building5.52-0.01(-0.18%)
Freightways Ltd2.95-0.05(-1.67%)
Goodman Fielder Ltd1.76-0.01(-0.56%)
Hallenstein Glasson2.16-0.04(-1.82%)
Kiwi Income Prop1.030(0.00%)
Mainfreight Ltd40.1(2.56%)
Michael Hill Inte0.530.02(3.92%)
Postie Plus Group0.30.01(3.45%)
Pumpkin Patch Ltd0.930.01(1.09%)
Ryman Healthcare 1.370(0.00%)
Sky City Entertainment3.08-0.01(-0.32%)
Steel & Tube Holdings3.06-0.04(-1.29%)
The Warehouse Group3.6-0.1(-2.70%)


Share Investor Portfolio @ 24 November 2008

ASB Capital No.2 0.85-0.007(-0.82%)
Auckland International1.660.05(3.11%)
Briscoe Group Ltd0.750(0.00%)
Fisher & Paykel Healthcare3.01-0.04(-1.31%)
Fletcher Building5.550.13(2.40%)
Freightways Ltd2.9-0.03(-1.02%)
Goodman Fielder Ltd1.80(0.00%)
Hallenstein Glasson2.280(0.00%)
Kiwi Income Property1.040(0.00%)
Mainfreight Ltd4.250.04(0.95%)
Michael Hill International0.570.02(3.64%)
Postie Plus Group0.30(0.00%)
Pumpkin Patch Ltd0.930.13(16.25%)
Ryman Healthcare 1.450.05(3.57%)
Sky City Entertainment2.980.01(0.34%)
Steel & Tube Holdings2.70(0.00%)
The Warehouse Group3.60.03(0.84%)

Go here to see updated prices and refresh your browser to get the latest market price*

* 20 Mins delayed

**The two comparisons above are snapshots of performance for the Share Investor Portfolio on the given dates and have no relevance to its overall performance over the long-term.


You can follow the Share Investor Portfolio now by scrolling down the left hand side of any page of the blog and go to the "Share Investor's Portfolio" module. Each stock in my portfolio is listed there with a 20 min delayed feed of prices from Yahoo Finance and associated charts, news and NZX releases for the day.

See how badly or well it is doing.

You can also follow the daily market value of two individual shareholdings of mine, Sky City Entertainment and Pumpkin Patch, the best and worst performers in my portfolio respectively, just below the Share Investor's Portfolio module on the left-hand column of the blog. These update the dollar values of each stock and return they have given me thus far.


Related Share Investor reading

Why did you buy that stock?

Why did you buy that stock? [Fletcher Building Ltd]
Why did you buy that stock? [Freightways Ltd]
Why did you buy that stock? [Kiwi Income Property Trust]
Why did you buy that stock? [Hallenstein Glasson]
Why did you buy that stock? [Briscoe Group]
Why did you buy that stock? [Fisher & Paykel Healthcare]
Why did you buy that stock? [Pumpkin Patch Ltd]
Why did you buy that stock? [Ryman Healthcare]
Why did you buy that stock? [Michael Hill International]
Why did you buy that stock? [Mainfreight]
Why did you buy that stock? [The Warehouse]
Why did you buy that stock? [Goodman Fielder]
Why did you buy that stock? [Auckland Airport]
Why did you buy that stock? [Sky City Entertainment]

Shareinvestorforum.com- Discuss this Share Investor Post


Long vs Short series

Fisher & Paykel Healthcare
Mainfreight Ltd
The Warehouse Group
Sky City Entertainment


From Amazon

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c Share Investor 2008, 2009