|From:||"G Stolwyk" <firstname.lastname@example.org>|
|Date:||Fri, 2 Mar 2001 01:15:00 +1300|
Readers: Previous items of the " irreverent " series were dated Feb.16, 10, Jan. 3 and Dec 31.
G: So, arising from your " CALLING ALL READERS (5), of Feb.21, you finally got an answer from the NZSE?
H: Yes, 2 attachments arrived; considering the delay, they must have had a busy time, dealing with complaints arising from the " Montana affair! ".
G: About a proposed listing of the NZSE, will it be a gold mine for its members, the brokers?
H: Keep your voice down; whenever dr Crash (" C ") hears that word, he is likely to pop in! Oh,,,, there he is!
C: Did I hear you say that the NZSE will be listed? How are the investors going to benefit?
G: Let us go back to the beginning and look for the reasons the NZSE wanted to " merge " with the AX.
I am saying that the self interest of its members would have been a priority!
H: I read that the difference between the cultures of the 2 exchanges are very great indeed!
Gaynor wrote that the AX. wants the period of reporting of any share dealings by directors cut from the present 5 days to 2 days.
That would suit the shareholder!!!! They would be able to monitor the intentions of the Directors!
C: Oh gosh! And in Kiwi Land, we only require it to be noted in the Annual report. No other notice needs to be given!
I hope that the NZSE is not going to say ( again ), that " this rule facilitates the operation of NZSE "!
G. Can the NZSE keep the present structure?
H: Of course, they can. But they know that the market in NZ is shrinking: There are many partial or whole take-overs of the larger companies by foreigners.
C: And more companies relist in Australia. As a consequence, less investment - due to loss of imputed dividends- will be made by the NZ investors in these stocks.
They will focus more on overseas stocks, as time goes on.
There will be more use made of overseas brokers and this is assisted by the greater use of Internet brokers by private investors.
G: There are new companies being listed all the time; unfortunately, they tend to be small and foreign investors like to deal with larger companies.
H: It is unfortunate that some investors have also become shy of investing in this country; there are too many hurdles to overcome!
The NZSE have contributed to this by their - in my opinion - self serving and outdated rules and in doing so, have caused damage to their own long term interests and the country!
G: What you are saying is that we may see a listing of a company with " deteriorating " prospects?
C: I would call it a " courageous " listing, if it were to take place!
H: Presumably, a valuer may compare the NZSE with the AX. and could note its current high share price.
C: I won't be taken in by that; Oh, I heard you say that it could be a gold mine to the investor. Well, you can count me out!
H: If they were to list than I can see the NZSE increasing fees to combat any loss of work or to increase earnings!
G: In my opinion, they will need to rewrite their Rules and replace some of their top management!
Unless this gets done, many prospective share holders will have no confidence in the NZSE!!!
And unless they get a suitable active Board of Directors with say, no more than 2 brokers - no " trophy hunters " or other self serving members please -, than a listing will be a complete waste of time!!
H: Yes, it is a difficult time for the present members of the NZSE; the current profit of this institution is very low indeed!
I assume that if they were to sell their seat to the other members, they may not get the return, they want!
C: The seat may therefore be sold to the investor by listing the NZSE!
Those are our opinions!