back!

Phew, a busy few weeks, finishing up last contract for a cool startup, some time in Rarotonga which is a fabulous little island in the pacific, hooning around like a crazy man (well, a crazy man who doesnt go over 40kmh) on a little scooter, getting up at the crack of dawn to throw coconuts at crazy annoying roosters, and other island enjoyments. Then, house hunting and shifting in very short order. Fortunately, we have eliminated most of our heavy furniture by donating it to various charities, and the look of relief on the movers faces was touching.

Now, everything is back working. Except me, which is fabulous!

One thing I have been doing in my ‘spare’ time is investigating my share investments. I have a reasonable amount invested in shares, mostly bought on whims like “it just dropped 20%, must be a good time to buy!” (note, just because it dropped 20% doesn’t mean it can’t drop another 50%), and “I like what they’re doing” (which doesn’t mean anyone else does). And of course, Telecom. Why Greg, why?

So, I have been doing some fundamental analysis on the financial reports. Which is fun in a super-geeky, don’t tell anyone you want to impress, kind of way. I’ve found it pretty educational, and have recently invested in Restaurant Brands (RBD.NZ) and Michael Hill (MHI.NZ), so you can follow how I do! It is however, quite hard work on the NZ stock market, simply because to get the information, you need to sift through years of annual reports. So I wonder, how many people following the NZ market actually do this? Does your investment advisor?

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4 thoughts on “back!

  1. I suspect very few. You might have noticed that Restaurant Brands have a number of broken links on their investor-relations web-site, which means a number of their prior period reports are not accessible. I brought this to the attention of Restaurant Brand’s investor relations personnel, and from their response I suspect that the links have been broken for quite a while. They are going to fix this soon, though I believe this is evidence that very few people are actually doing substantive fundamental analysis of these companies.

  2. Yes, I suspect you’re right. Although the National Bank, Direct Broking people seem to have some reasonable summary analysis.

    One of the fascinating things I find about share analysis is the conjunction between science and art. Science, looking at fundamentals and what has happened, and art, looking forward and trying to understand the market forces going forward. Fascinating stuff.

  3. carl says:

    mmm . I have advertised a “kids entrepreneur club” where as it stands I am supposed to be teaching some of this stuff in a short while! eh oh.

    BTW I wonder why michael hill apeals? Canada coming along? I read the michael hill story – not a bad read…

    hope the new house is all good …

  4. Hey Carl, the justification behind Restuarant Brands is simply a cash question. They make about 10 million a year in profit. Assuming they go on making 10 million a year, whats a good price for the company?

    MHI is a different story. They have a good history of growth, which makes for a very good story for investors, assuming you believe the growth can continue. There is a lot of management experience at the company, and, assuming people will continue to buy jewelry at similar rates in the long term, it would be reasonable to expect that their growth can continue. But nothing is ever certain, and so you need to watch their reports quite closely.

    and yes, new house is fabulous!

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