Share Investor

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.

Share Investors Portfolio @ 17 Oct 2017

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 Investors Portfolio @ 17 Oct 2017

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.

From Stuff.co.nz

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

c Share Investor 2017

Wednesday, September 27, 2017

A2 Milk Corporation

A2 Milk Corporation Ltd [ATM.NZX] chart looks like a plane is taking off, as it does it appears to be dropping left-lets over China because that is where the buying and selling of this stock is coming from.

There has been $22 million passed today, so far.

A chap asked yesterday via this website what I thought of this stock now it was over 6 bucks and heading over to over 7.

I said something like it was a stock based on true value but like Fisher & Paykel Healthcare Ltd [FPH.NZX] and Mainfreight Ltd [MFT.NZ] amongst other stocks, it was getting way beyond its value.

It has a PE ratio of over 50, more than both MFT and FPH and 12.49c in earnings per share.

To be fair it will continue to go up with earnings approaching 20 cents per share next year but which ever way you look at it it is overvalued.

I also think I said that this stock looks like it is on the (Chinese) fast track to the stratosphere so would be surprised if it put on 2 bucks (conservatively) before xmas.

I politely refused to utter anything material on the stock, except to say I had been watching things from late last year.

Good luck.

c Share Investor 2017

Monday, September 25, 2017

Sky City: Even Cheaper Now

c Share Investor 2017

c Share Investor 2017

Share Investor

Tuesday, October 17, 2017

Share Market Not Like it Was 30 Years Ago

Wednesday, October 11, 2017

Fisher & Paykel: The Biggest Listed Company in New Zealand

Wednesday, September 27, 2017

A2 Milk Corporation

Monday, September 25, 2017

Sky City: Even Cheaper Now

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