Share Price Alert: New Zealand Stock Exchange Ltd

Somehow the recent meteoric rise in New Zealand Stock Exchange Ltd [NZX.NZX] has passed me by.

In the last 10 days alone NZX shares have added 49c or 30% and are well off a 52 week low of $1.39 reached back in September 2010.

Quite honestly I am scratching my head as to why this might be.

The 2010 full year net profit result was underwhelming and the outlook isn't as near as promising as the share price might indicate.

The stock is thinly traded, with mostly brokers holding the bulk of shares but clearly the share price has gotten away from the realities of company performance and its current price might be a good place to say goodbuy.

A 30% rise in share price is not a sustainable one.

For short-term investors you might want to sell for a quick buck and for those of you wanting this stock for your long-term portfolio best be patient and wait for the share price drop.


Share Price Alert

Mainfreight Ltd
The Warehouse Group Ltd
Pumpkin Patch Ltd
Hallenstein Glasson Holdings Ltd
Fletcher Building Ltd
Restaurant Brands Ltd
Mainfreight Ltd
Tourism Holdings
Goodman Fielder Ltd
Pumpkin Patch Ltd
Hallenstein Glasson Holdings Ltd
NZ Refining Ltd
Freightways Ltd
Xero Ltd


NZX @ Share Investor

The NZX continues to lose ground with retail investors
NZX Share Split good news for profit takers
New Zealand Stockmarket: A History from beginning to Present
NZX needs competition
NZX sneaks out embarrassing carbon disclosure after dark
Bruce Sheppard: Mark Weldon - "The Sheriff of Nottingham
Bruce Sheppard: Explanation Received
Bruce Sheppard: Please Explain
Mark Weldon Strikes out on Carbon Trading
Mark Weldon now in two minds about Carbon Trading
Quote of the Year

Discuss NZX @ Share Investor Forum



c Share Investor 2011

AUDIO: Two Essential Investor Interviews

I have included two crucial interviews carried out by Kathryn Ryan from Radio New Zealand made over the last two days.

The first is an interview with Mark Binns, infrastructure CEO of Fletcher Building Ltd [FBU.NZX] where he talks about his company's role in rebuilding Christchurch and the obvious benefits that will bring to the company over the next 3-5 years.

The second interview is with Allan Bollard, Reserve Bank Governor, and his rationale for increasing the OCR today by 50 basis points to 2.5%.

The last interview is especially interesting given that Bollard made a preemptive rate cut today rather than the typical reactive moves that he usually makes, so it is clear that he sees the economy getting worse over 2011, partly due to the Christchurch Earthquake and that things will not pick up until 2012 when we will see increasing economic activity surrounding , ironically, around the rebuilding of Christchurch.

Fletcher Building will be one of the largest benefactors of this rebuilding so it makes the interview compelling listening to those investors thinking of buying FBU shares.

Download Interviews

Mark Binns
Allan Bollard


Recent Share Investor Reading

• Allan Hubbard Saga: Sixth Grant Thornton Report
• Share Price Alert: Mainfreight Ltd
• Share Investor Q & A: Auckland Airport's Simon Moutter
• Mainfreight's European Aquisition a Good Move
• Auckland Airport CEO on Queenstown Airport Fracas

Discuss this topic @ Share Investor Forum

Recommended Fishpond Reading



Buy The Intelligent Investor & more @ Fishpond.co.nz






c Share Investor 2011

Allan Hubbard Saga: Sixth Grant Thornton Report

The sixth Grant Thornton Report was released last week but I couldn't summon up the anger needed to give my views.

I am now slightly miffed because of reasons I will not explain, so I will give it a shot.

This report isn't a long one so this will be brief thank the lord.

The main and most telling point of the sixth report is that Allan Hubbard used investment securities held by Hubbard Management Funds (HMF) as security for his own personal borrowings.

Clearly this is wholly out of order and in respect of individuals involved in other finance company collapses, what Hubbard has done here is no different to any of the low rent sharks living in Paratai Drive who used to run dodgy finance companies.

Because of liens held over these securities third parties will, have and should lay claim to assets in HMF with the upshot being investors in HMF are going to get less back than originally thought.

So much for Mr Hubbard protecting his investors, he was protecting himself and his own borrowings, with HMF investors own money!

Hubbard yesterday pledged to use his own money/assets to prevent losses to investors but as we have seen before in cases like Mark Hotchin and Hanover, these "assets" are likely to be complicated in their structure or compromised in some way.

On a separate but related front the serious fraud investigation into South Canterbury Finance has been delayed for the third time by Hubbard's lawyers because of drawing out tactics related to more information they decided to submit at the last minute to stay any possible charges. The last delay was due to submission of an MRI scan to show that Hubbard was not mentally fit to face charges brought by the SFO.

It appears April will now be the month that Mr Hubbard will or will not face fraud charges.

Sorry, I must be grumpier than I initially thought.

Allan Hubbard Saga

Full SFO Statement on SCF Fraud Investigation

Hubbard Letter to Simon Power

Download Grant Thornton Report 1
Download Grant Thornton Report 2
Download Grant Thornton Report 3
Download Grant Thornton Report 4
Download Grant Thornton Report 5
Download Grant Thornton Report 6

Join the Put Allan Hubbard Away Facebook Group

Allan Hubbard Saga: Hubbard to Face Fraud Charges
Allan Hubbard Saga: Hubbard looks set to cop a plea
Allan Hubbard Saga: Supporters Risk Legal Action
Allan Hubbard Saga: Mental Challenge
Allan Hubbard Saga: Hubbard Defiant in 2011
Book Review: Allan Hubbard: Man Out of Time, by Virginia Green
Allan Hubbard Saga: VIDEO - Hubbard Biographer Virginia Green on TVNZ's Breakfast
Book Extract - Allan Hubbard: Man Out of Time
Allan Hubbard Saga: Going Feral - Part 3, The Final Cut
Allan Hubbard Saga: Going Feral - Part 2
Allan Hubbard Saga: Paul Carruthers Goes Feral... Again
Allan Hubbard: The Biography
Allan Hubbard Saga: On Forged Signatures and Uncharitable Trusts
Allan Hubbard Saga: Evidence of Fraud now Clear
Allan Hubbard Saga: NBR VS the SFO
Allan Hubbard Saga: South Canterbury Finance to be investigated by the SFO
Allan Hubbard Saga: Third Grant Thornton Report
Allan Hubbard Saga: Will He Walk?
Allan Hubbard Saga: No Longer Bothered by Botherway
Allan Hubbard Saga: 60 Minutes Interview, Sept 23 2010
Allan Hubbard Saga: Supporters head to the exit door
Allan Hubbard Saga: Threats & the Mysterious PWC Report
Allan Hubbard Supporters: Conflict of Interest
VW Veneer reveals BMW heart
VIDEO: Jenni McManus Explains Allan Hubbard Collapse
Allan Hubbard Statement on SCF Receivership
VIDEO: Sandy Maier - full news conference on SCF Receivership
Market Alert: South Canterbury Finance to be placed in Receivership
Allan Hubbard: Ignorant Supporters Blissfully Unaware
Thornton Report 2: Allan Hubbard Guilty as Charged
Allan Hubbard: Full TV3 Interview - July 16 2010
Thornton Report 1: Allan Hubbard's Aorangi Securities
Bothered by Simon Botherway

NEW - From Fishpond.co.nz | Think Bigger, By Michael Hill

Join the Share Investor Facebook Group

c Share Investor 2011

Share Price Alert: Mainfreight Ltd 2

News that Mainfreight Ltd [MFT.NZX] has bought European logistics company Wim Bosman Group has, in logistical terms, sent the price of Mainfreight shares into destinations previously uncharted.

The share price almost hit the magical 9 buck mark, topping in intra trading today at $8.95 but finishing up 23c or 2.3% to close at an all-time high of $8.82.

The stock has risen almost 9% in two days since the news and by more than 10% over the last week.

MFT shares have risen by around 14% in 2011 and are off 52 week 2010 lows of $5.85.

The thing is, as good as the acquisition is for Mainfreight, and I believe it is a good move, the share price really has gotten away from the realities of the short term benefit for the company.

Long term the share price clearly should increase based on how well the new addition fits into the company and how much profit it makes but short term the market really has overreacted like Charlie Sheen in a room full of cocaine, hookers and the creator of Two and a Half Men.

If you are looking for the short term the share price must be close to a short term peak and long term best be patient, there are more tough times ahead that could hobble the stock in this good company.

Buy on weakness below 8 bucks.


Share Price Alert

The Warehouse Group Ltd
Pumpkin Patch Ltd
Hallenstein Glasson Holdings Ltd
Fletcher Building Ltd
Restaurant Brands Ltd
Mainfreight Ltd
Tourism Holdings
Goodman Fielder Ltd
Pumpkin Patch Ltd
Hallenstein Glasson Holdings Ltd
NZ Refining Ltd
Freightways Ltd
Xero Ltd



Mainfreight @ Share Investor

Mainfreight's European Aquisition a Good Move
Share Price Alert: Mainfreight Ltd
Investing in the Stockmarket: Timing your Purchase
Stock of the Week: Mainfreight Ltd
Mainfreight Ltd: 2011 1st quarter Profit Analysis
VIDEO: Don Braid with Paul Homes on the Economy
Mainfreight Ltd: Full Year 2010 Profit Analysis
Long Term View: Mainfreight Ltd
Share Investor Interview: Mainfreight's MD Don Braid
Stock of the Week: Mainfreight Ltd
Questions to Mainfreight's MD Don Braid
I'm Buying: Mainfreight Management delivers the goods
Mainfreight Annual Report Packs a Punch
Analysis - Mainfreight Ltd: FY Profit to 31/03/09
Mainfreight VS KiwiRail: The Sequel
Long VS Short: Mainfreight Ltd
Why did you buy that stock? [Mainfreight Ltd]
Mainfreight 2008 Annual report worth reading
KiwiRail will cost Mainfreight
Mainfreight keeps on truckin
A rare breed
Share Investor's 2008 stock picks

Discuss MFT @ Share Investor Forum
Download Mainfreight Company Reports

	The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) (Collins Business Essentials) by Benjamin Graham Buy new: $13.25 / Used from: $9.24 Usually ships in 24 hours
	The Essays of Warren Buffett: Lessons for Corporate America, Fourth Edition by Warren E. Buffett Buy new: $30.40 / Used from: $169.48 Usually ships in 24 hours

c Share Investor 2011