Forum Archive Index - January 2000

["vincent.wang" <vincent.wang@xtra.co.nz>]

Nigel/Tony,

 

Thanks for your CHESS  information.

 

I currently use my local broker to buy Australian shares.  They charge 1% for buying or selling shares, plus stamp duty.  They even arrange exchange for the payment and their rate is often better than banks'.

 

What is the charge of etrade and how do you handle exchange ?

 

I have bought a book called "The share investor's handbook" last year.  This book is the equivalent of N.Z.'s"investment yearbook".

 

I have identified following sectors are good buys:

 

-healthcare

-media(maybe too expensive now)

-infrastructure(defensive and good for long term investment)

-telecommunications(double digits growth)

-insurance's(currently out of favour)

-chain stores

 

I have watched banks for a year, but don't think it's a good time to buy.  If you look at 4 pillar banks share prices movement chart, you would find the share prices started to move upward only after interests significantly dropped since end of '96.  They are very interests sensitive.  Besides, their balance sheet are not as strong as insurance companies.  

 

The other sector I have interest is tourist.  But Australia did not have a diversified company like THL.

 

My view on buying Australia shares is: only buy those company whose main operation is in Australia(possibly N.Z. too)  Because I do not see many Australia companies succeed in overseas investment.( N.Z. have the same problem)

 

RGDS,

 

Vincent Wang

 

Disclosure: holder of THL shares and small holdings of Telstra, C & W Optus, Macquaire Infrastructure Trust, Australian Hospitalcare, Data Advantage, and National Mutual.