Forum Archive Index - December 2000

["hugh webber" <hugh.webber@clear.net.nz>]

Let me add my good wishes and thank you's to Ben and Will and
the Sharechat team and all the contributors.

However I do take issue with Sarah over the NZH Air story.
Sincerely recommending TEL to go up to $12 when there was 
supporting evidence at the time (the overseas P/E's of telcos,
the technological advances taking place in telecommunications,
the, at that time, solid cash flow) is one thing but making completely
ignorant and negligent statements when you're in a position where
clearly you should know better is another thing.
Any financial reporter who thinks oil prices are still rapidly going up
and that the US dollar is going to strengthen significantly further
is away with fairies and needs some peer review/editing before his
stuff is published.
Maybe its the time of the year when his peers and editors are mostly
on holiday.

And although people apparently went over the edge in their comments
on the DFC Mainland brokers advice (I only saw RIL's comments
and I agree there was some unacceptable personal stuff and swearing)
I'd put the DFC advice to buy ITC (if RIL's quote was right, I haven't
looked it up) in the same sort of category - rather like a broker
advising people to buy Poseidon at $A100 in 1987, totally reckless
and factually unjustified.
Surely, despite disclaimers, there's still some sort of very minimum
duty in terms of research, justification and facts or I'd have to say
that everyone in sharechat contributing would be better brokers 
than ones like those.
I suppose the case law says only fraudulent misrepresentation and
gross negligence are actionable but I think we have seen some 
broker advice of sheer recklessness.

cheers,
Hugh


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