Forum Archive Index - June 2002

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

>
>
> some great posts on wri, have had 2 good trades on wri but not at
> the moment, my reason weekly directional turned down 1st week in
> march, any rally is on light volume, 30wk m/a has turned down, but
> who knows will keep watching. 
> 
>

Just in case anyone got the wrong message, I wasn't suggesting 
Wrightson's be watched as a trading opportunity.  The classic 'ideal' 
income share trades at a constant price adjusting upwards and 
downwards only to account for the dividends to be paid/ just paid.  
This is the worst type of share possible for a trader.  You can't 
trade a share that flatlines.  But as I have said before, there is no 
such thing as a straight income share, as all shares have elements of 
growth and income in them.  So I am not saying that you can't speak 
about trends in WRI.

The observation above that the WRI share price has trended down 
(short/medium term) is a positive for the income investor.  The fact 
that the price is lower means the dividend yield is higher.   For the 
income investor waiting for the share to trend higher, which means 
the yield is reduced, makes no sense.

Likewise volume is only of interest, as long as the volume of shares 
traded is sufficient to allow the income investor to buy their 
shares.  Generally the fact that the volume has turned down is of no 
interest to the income investor.

SNOOPY




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e-mail  tennyson@caverock.net.nz
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"Stay on the upside of the downside, 
Anticipate the anticipation!"



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