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
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
H: Keep your voice down; whenever dr Crash (" C
") hears that word, he is likely to pop in! Oh,,,, there he
C: Did I hear you say that the NZSE will be listed? How are the investors going to
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
Gaynor wrote that the AX. wants the period of
reporting of any share dealings by directors cut from the present 5 days to 2
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
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
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
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in my opinion - self serving and outdated rules and in doing so,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
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
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!