Investors have reached a Tipping Point

I have got to say it, I am over reading, watching, listening and writing about economic crises, recessions, banking collapses and companies sinking under debt.

Enough already!

Lets get on with the real stuff of business, finance, companies growing and returns we can all get from investing, in the stockmarket and other financial sectors.

I, and I feel others, have reached a psychological tipping point where we just cant take all this bad news anymore and we want to concentrate on content rather than the emotional turmoil of turbulent markets. Whether it is boredom or pure negative information overload we all have a tipping point that we reach at one stage or another.

That is not to say people want to bury their heads in the sand and forget what is happening around them but this change in market "feeling" (some say would say greed instead of the most recently prevailing fear) is palpable in my circles of influence.

I was reasonably pessimistic about economic events over the last few years but there came a point where my tiny little brain just couldn't take any more bad news and it did a 180 degree turn.

That happened a couple of weeks ago.

When that happens as a group, or in this apparent case millions of investors, the more positive mental outlook lifts everything around them.

We have been told at least half of the economic downturn is due to state of mind rather than real economic factors, and I believe that has merit, so finally hitting the wall of economic bad news is, well, good news for the real economy.

Let me repeat, I am not sticking my head in the economic sand. I and I would contend many others are sick of the dire economic news, just cant take anymore and are ready to move on.


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MarketWatch - Auckland International Airport

Auckland International Airport [AIA.NZ] is presently a well underrated stock, for a number of reasons. It, like every either stock on the NZX, is getting a pasting by nervous investors and post the merger hubbub the share price has tanked.

OK, I do own this stock but it is pretty immaterial really, I only own 1000 shares, so if you do rib me just make it a small ribbing if you would.

I bought my shares at $2.15 and at today's closing of $1.70 (I originally started this yesterday when AIA was at $1.64) it makes the company a cheap proposition. $1.56 is its 52 week low. (see 2 year chart above for details)

Just over a year ago they were fetching more than $3.60 due to competing bids to buy a share of the company.

Lets forget about the share price for a moment though, even though that is the main reason for this particular column.

For $1.70 per share what do you get?

* An essential monopoly with the ability to raise prices consistently above the rate of inflation.

* Add-on revenue streams from large retail areas inside and outside the port proper.

* Large tracts of undeveloped land surrounding the port.

* Consistent organic growth through increased passenger movements.

To add to this there has been a softening in National Government policy to allow assets like these an easier saleability to overseas interests; Previous Government regulation led the AIA sale to fall through.

In addition to the above point and politics again I'm afraid, with the imminent "super city" about to dawn on Auckland the question of airport shares being held by Auckland and Manakau City Councils will definitely come up again.

Regardless of the short and long term propositions that I have pointed out for owning this stock you will have to make your mind up whether you want to buy Auckland Airport stock but I rate it a buy at these price levels.

Auckland International Airport @ Share Investor

Why did you buy that stock: Auckland International Airport
Cullen's move on Auckland Airport has far reaching effects
Cullen's move on AIA tax plan Anti-Business
AIA profit stays grounded
Softening opposition to CPPIB bid for AIA
Directors of AIA bribe brokers not to sell
What is Auckland Airport worth to you?
Second bite at AIA by CPPIB might just fly
AIA new directors must focus on shareholders
Auckland Airport merger deal nosedives
The Canadians have landed
AIA incentive scheme must fly out the window
Government market manipulation over AIA/DAE deal
DAE move on AIA: Will it fly?

Discuss this stock @ Shareinvestor.net.nz


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c Share Investor 2009

Kristen Dunne-Powell deserves a media beating

I am currently listening to Tony Veitch on Newstalk ZB being interviewed by Susan Wood.

If his account of the kick in the back was true Kristen Dunne-Powell deserved everything she got.

According to Veitch she was in effect stalking him, wouldn't let go after he dumped her and she put herself physically in his way to stop him from leaving a bedroom-he kicked her in frustration.

He shouldn't have kicked her but the hell she put him through before the assault looks to have pressured Veitch to the point of breaking.

She then pretty much did nothing about the incident until five weeks before Veitch was due to be married and then, through her lawyers extorted more than $150,000.00 off him and promised to keep silent in return.

She then released detail to the media, then through her lawyers and PR spokes people has spent the next year assaulting his character.

Sounds like a spiteful, vengeful, media hungry bitch with an axe to grind to me.

Hell hath no fury like a woman scorned huh .

Veitch was cleared of serious assault charges today.

c Political Animal 2009

Tony Veitch cleared of all serious accusations

So Tony Veitch has just pleaded guilty to "reckless disregard causing injury" and 6 serious assault charges have been dropped.

What this means in effect is that there was insufficient evidence to prove assault and Veitch has pleaded to this non charge to bring the whole thing to a head rather than wait for another 2 years to get his day in court.

Former girlfriend Kristin Dunne-Powell who brought the charges, along with a police force publicly out to get him have got what they wanted though; his name dragged through the courts and his reputation, whatever that was, tarnished beyond repair.

Dunne-Powell has clearly got egg on her face and it would be nice for the mainstream media to attack her in the way they went after him.

I seriously doubt it will happen though.

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c Political Animal 2009