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International Investing / Australia (All-Ordinaries)


Subject:  Re: AGL Nosedive? Date:  3/11/2000  8:40 PM
Author:  demiller1 Number:  1224 of 6186

I take it Lance that was tongue in cheek?

Your comments however add to the sorry state of affairs that now exist in that we have allowed ourselves to be taken by the same pattern of greed fascination that those that lived before us in 1700, 1830, 1929, 1973,1984 and 1987.

We no longer look to value stocks as we do not know what value is! Instead we look to a concept stock that returns 35% capital growth in a short space of time and we think that this is all above board.

In youth I was once warned that the offer of easy money was illicit or illegal. Since then they have legalised gambling, however that does not mean that you will have gd returns continuously on concept stocks that offer no more than an 'e'xpectation of future results.

How mad have we become when Telstra posts enormous profits yet the investing public sells off these shares and then invests the proceeds into a fantasy that may have expectations of some future profit. This applies to basically all of the blue chip stocks from NAB, NDY, ANZ, BHP ... all of these stocks do not have the internet concept entangled into their business plans and hence the unfashionable is left for the fashionable - regardless of the ability for any profit or dividend to materialise in the short of long term.

What you see happening on a daily basis is the groundwork being done by the '' investing public to transfer capital to valueless stocks. You cannot give a company value that can only make losses! A vacuum cleaner has the same ability yet I feel that this allegory will be lost on the forum.

The subsequent result will be the loss of the capital that is invested by the public through a reality check of a correction or crash of the markets. What a better way to wipe out this purported wealth that has been created and teach all a lesson in value investing!

And if you think that it cannot happen then think again as most crashes occur after good profits are posted!

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