Forum Archive Index - February 2002

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

>
>> John wrote:
>> I saw price below 5.12 I got out at 5.09   I see it
>> has recovered slightly since, however such is life.  
>> (I've probably broken even in terms of cost, and 
>> made "say" 4% in dividends)    I wish I had gotten 
>> off so lightly with some of my other "losers" !! (ie  FFS)
>>  I'm a definite "fundamentalist"   I personally,  can 
>> only see TA being usefull, as a tool to assist in the timing
>> of a fundamentalist decision.!!
>>
>
>Nick wrote:
>The fundamentals of tower are ok and for the long term they are
>probably a good bet. However as you and mr p both point out the
>stock hasnt relly moved from a shareprice perspective  Earnings
>growth is forecast at about 7% while the p/e is only 11 this
>means the share is on the cheap side. Heres some info on the
>company i picked up at sharechat. All up they look a reasonable
>prospect, the fact that the shareprice hasnt moved in the past is
>irrelevent/ The company is doing good which in the long run is
>what counts. 
>
>
I don't follow the fundamentals of Tower closely, but if Nick's 
summary is correct, I don't know why a fundamentalist investor would 
be rushing to sell out.  John's description of 'Tower' as a 'loser' 
seems to me to be quite absurd.   4% is quite a good dividend yield 
for a growing company and IIRC, there is still the prospect of 
takeover activity on the horizon.

The only way John could justify viewing his investment as 'a losing 
one' is because he failed to 'get rich quick'.   I don't wish to 
single out John in particular here, as I think this type of attitude 
is common among New Zealand investors.  If you go into an 
investment on the sharemarket with ridiculuous expectations and a 
time frame of less than two years you are a speculator, not an 
investor.  John did the right thing be selling out, because as a 
speculator he is looking for better momentum punts than a relatively 
dowdy company like Tower can provide. SNOOPY






   

 
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