such as? ?
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Funds Management, Dairy Derivatives, Agri, Wealth Technologies, and now talk of environmental and energy markets. Sure, these are presented as being related the core business but it would not be hard to transition them elsewhere too.
I don't remember any of that stuff being part of the NZX 20 years ago. The ETFs alone are a pretty proactive development.
I'm not trying to comment on the history of the NZX. Merely pointing out that they are also pursing an active strategy for the future.
You mean like Clear Grain?
Beauty of the NZX reward structure for management is that there is zero penalty for bad strategic investments and initiatives - only ever upside. Weldon was rewarded with a whole pile of options for screwing up NZX's core business through gross mismanagement & costing the NZX big $$$ (est $25m) for Clear Grain, and Tim Bennett was rewarded despite NZX's sp going backwards during his tenure.
Meanwhile, the core business of NZX is going backwards and all the peripheral businesses being developed are not going to replace and offset the backward slide of the core business.
Wait for the reaction to ATM decamping like Xero to ASX.
Anyone see any multi-billion dollar listings anytime soon in the next 3 years wanting to list on this miserable exchange of low liquidity and minimal analysts and brokers support of existing listed stocks?
I have already commented but it is worthwhile highlighting again that for all of NZX's talk of cost control and business growth, all of its so called profit growth in the last year came from one-offs.
once a ponna time you used to get companies falling over them selves to list when in midst of a bull market , dont know why its not happening this time ? something very wrong ?
anyway the market doesnt think much of there strategy share price has been down ever since they announced it and i see a big share holder has been selling too , not surprised being top of the cycle with minimal growth ahead if that .
Thanks for the feedback. I agree that the market itself is in a challenging situation but I am trying to figure whether the share price itself is oversold because of sentiment about the market and the history rather than the company itself, given that the company is not lacking in energy and is constantly looking for new ideas. It certainly is a somewhat unique company and very hard (for me anyway) to know what a good share price could be for it. So thanks for the feedback.
Not trying to tell you how to suck eggs but first step would be by evaluating its investment fundamentals - enterprise multiple vs other stock exchanges?
NZX has been looking for new ideas for a long long time - that's different from actually being able to find one which can go anywhere towards supplementing the non-growth in its core operations.
Remember NXT? Years of consultations and analysis and NZX came out with a dead duck! And it tried to kill off the NZAX by increasing charges several fold - then backed down.
You really have to laugh at these idiots running the exchange.
I was actually hoping the exchange would come up with some radical ideas to turn around market sentiment and have New Zealanders embrace our stock market.
Alas, so far it's the same old platitudes with the clowns running around in circles without addressing the elephant in the room - NZX charges too much for the rapidly deteriorating services it provides and puts bugger all back into the market.
See NBR headline : "Restive NZX shareholders are talking merger again'?
Now isn't that rich?
The very same shareholders (like I assume, Brian Gaynor and Forsyth Barr) who believed it was the right thing to reject the overtures from the ASX re a merger or takeover when NZX was demutualised (and praised Weldon as the messiah whose backside farted sunshine) are now wanting a merger?
All too late really - NZX is now irrelevant as companies are choosing to list on ASX or decamp to ASX on their own accord.
Only listings via backdoor vehicles and private equity sell downs (Wynyard, Intueri, Tegel, Veritas, Orion Healthcare woof woof etc etc etc) to look forward to with NZX.
To be fair, I'm not convinced that any decisions by the NZX would have changed the reducing volumes. Rogernomics / Reagonomics/ Thatcherism basically meant that any country with money (eg US, UK) could buy out the best assets in any country and then demand ongoing rent. Just look at how much money flows out of NZ to the Aussie banks alone. This has meant NZ has become a poorer and poorer country over the years despite the headline claims by politicians. Nobody even reports the balance of payments any more because it is never good, now we only talk of the balance of trade. How does a local exchange do well when everyone in the country is getting poorer?
And I'm just trying to figure out whether the company can itself make profit anyway if they remain keen and alert. A merger may well be logical and still profitable for shareholders in the circumstances, for example.
Who is gonna want to merge with NZX?
There was a time way back in the early 2000s when NZX was attractive to a player like ASX or Singapore Exchange. Now both have grown exponentially while NZX has gone backwards.
It is a small regional exchange ($101 billion) with bugger all growth, bugger prospects of growth and a horrendously expensive cost structure if it is to meet best practices of providing information and services to the market at fair price.
Each of the top 4 biggest stocks (CBA, BHP, WBC & ANZ) alone on the ASX is bigger than the whole of the NZX!
Total market cap of ASX is A$1.7 trillion so NZX is but 6% of ASX!
Heck, even the Philippines Exchange is bigger than NZX!
NZX under Weldon and the board of self-interested sleeping directors was a grossly mismanaged exchange with profits coming principally from the relentless increase in fees and charges - it stopped when the listed companies had enough and threatened to take NZX to the Commerce Commission for monopoly abuse. The goose was well and truly plucked by then by Weldon & the directors.
When businesses with membership type customers change their prices, revenue (P x Q) is immediately impacted but quantity (memberships) have a lag. Weldon exploited peoples short term evaluations on profits, if he didn't do it someone else probably would have.
NZX are paying consultants to look for lucrative add-on revenue streams to their core service whilst their core service is in decline, the consultants are likely to agree that is a good strategy.
NZX should play the strategic long game of improving process and reducing cost of their core service.
Precisely why NZX is buggered as the goose has had its feathers plucked clean by Weldon - ably assisted by the sleeping board of directors and some of the profile shareholders.
ASX was not operated on that short term basis when it was demutualised - the goose was fed well and grew new feathers and flew higher.
Likewise, London SE and Singapore SX.
For the record, this is indicative of what the sleeping board was like:
Exhibit A. October 2011 when commenting on Weldon's resignation -
"Under his stewardship, NZX has grown from a small and threatened mutual exchange to a
thriving information, markets and infrastructure business, with a range of integrated business
lines, a healthy balance sheet and a valuable set of options for future growth,” said NZX
Chairman Andrew Harmos.
Absolute garbage written by Harmos.
1. NZX threatened? Hardly - shareholders would have been much much better off as part of a huge Australasian exchange and received ASX shares.
ASX has gone from $10.85 in 2003 to $58 today.
2. Valuable set of options for future growth?
Tim Bennett found no growth and no options for growth - smart enough though to leave and appeared to pick up a generous severance pay (2016 total pay - $2.89m vs 2015 - $1.1m).
Why would a resigning CEO be awarded a severance pay? Smelly?
Exhibit B. February 2012 when announcing appointment of new CEO Tim Bennett:
"It is a credit to departing CEO Mark Weldon, and to NZX's
management team, that both the company and the role are seen as providing highly
desirable opportunities to local and international candidates." wrote Andrew Harmos, Chairman.
Garbage again by Harmos.
Tim Bennett found an NZX bereft of management depth and experience, and a stinking mess & very revealing revelations from the Clear Grain litigation of how dysfunctional the NZX was under thec 'my way or highway' management of Weldon.
He could not leave fast enough.
May 2012 - NZX sp was $1.25. Now - $1.06
ASX was $29.36, now $58.00.
Another $750m gone from NZX - and absolutely no signs whatsoever that there will be a replenishment any time soon for CBL as well as Xero.
Adding to the toll of duds on NZX - Wynyard, Intueri etc.
There is no excuse whatsoever for another Feltex but in CBL, NZX has showed that it has learnt nothing from the Feltex disaster.
So I got my first dividend cheque and note that I was taxed 33% (109.20 gross minus 36.04 tax) - is the tax rate normal? Any way to reduce?
You are not taxed 33% - that is the default resident withholding tax (RWT) which will comprise imputation credit of 28% and RWT of 5%.
You have to elect RWT rate at 0%, 10.5%, 17.5%, 28%, 30% or 33% - otherwise it is automatically 33%.
If your year end marginal tax rate is less than 33%, you will get some or all of the RWT back.
Hope that helps.
You can't elect a tax rate for dividends. You simply file a return at year end to get a refund if your tax rate is below 33%.
Pretty pessimistic posts, but I wonder if the nzx may be a little less susceptible to the dramatic swings experienced on other exchanges?
https://www.nbr.co.nz/subscribe/213132
If you ever want proof that the NZX is a completely useless organisation, the CBL debacle is the ultimate proof.
It took the NBR to hunt down the liquidator who advised that CBL will NOT be releasing its results - not the NZX.
No announcement from NZX.
NZX is asleep at the wheels (as per normal).
An exchange which does nothing to protect the interests of its investors - where is the vision and strategy?
the terrible thing about the cbl saga if it turns out to be the worst case is how did they suck in all the brokers and exchange and investment bankers to get this thing floated? or have all the original investors floaters got there money and run? I dont know .... but its not a good look for the exchange
https://www.nzx.com/announcements/315024
Wow!
NZX's notice that CBL will be suspended if it does not furnish their results on time!
Bit like kicking a dog very very very hard when it is already dead.
Let that be a warning to all.
Oh wow!
NZX and FMA charging to the scene of the crime - after the victim is already dead and the culprits have been granted immunity!
https://www.stuff.co.nz/business/101...mpany-troubles
Excerpt : "Meanwhile, the Financial Markets Authority and stock exchange operator NZX have confirmed there is a joint investigation underway into whether CBL properly disclosed the issues it has been facing.
"Given the circumstances surrounding CBL, the FMA and NZX are concerned that CBL may have been in breach of various obligations, including its continuous disclosure obligations," the two organisations said in a statement."
Guess the NZX and FMA will levy a huge gigantic fine on CBL and serve the notice of censure on the liquidators?
https://www.nzx.com/announcements/315046
Numbers for equities don't look too bad, but i'm sure you'll have a reason to hate on them LOL.
When the economy has been performing strongly over the past few years, solid economic growth, markets well ahead, increasing amounts of KiwiSaver for investment - the number of equities being down 6.5% is hardly positive. Also with nothing in the pipeline.
That's a net loss of 10 companies off the NZX in the last 12 months!!
Would be interesting to compare with the ASX.....
i find the use of yoy figures can paint a misleading picture after a good year , fund managers do the same. think a better way for nzx and fund managers etc is to provide a ytd figure
https://www.nzx.com/announcements/315212
Oh wow!
MOU with SGX!
Then there was the MOU with HKG.
Just as there is the NXT and before that, the NZAX.
https://www.interest.co.nz/opinion/9...-loopholes-our
another knife for the nzx , slow declining death for sure eventually at this rate like the article says there wont be a market
http://www.nzherald.co.nz/business/n...ectid=12009742
agree with gaynor about nz poor governance , but he did fail to mention that fund managers are the one that can apply the most pressure to boards on this matter
Haha - notice how Brian did not mention NZX itself as well at all?
NZX was a most dysfunctional company (and by consequence, the whole stock market) under a sleeping board with vested interests who allowed Weldon to pluck the NZX clean of future growth and opportunity.
Everything that Brian criticised in the article, from poor governance to destruction of internal talents, happened with the NZX. And Milford along with quite a few fund managers, and Forsyth Barr and GPG, were big shareholders. So what happened under their watch?
What happened was that the big shareholders like Milford were in full support of a regime where the NZX could do no wrong (as long as the sp was going up) - even as market participants were being milked dry by:
1. excessive monopoly charges,
2. poor service,
3. questionable and selective application of NZX rules & regulations (never seems to apply to NZX itself),
4. NZX management ranks and experience were decimated by gross mismanagement (Weldon's 'my way or the highway'),
5. little investment back into the industry even while the NZX profiteered through ever higher charges.
WELL, THE CHICKEN HAS RETURNED TO THE ROOST WITH LITTLE OR NO FEATHERS!
https://milfordasset.com/insights/we...e-wrong-target
https://milfordasset.com/insights/it...o-higher-level
We all know it took the revelations of Clear Grain and Media Works to shut off the self-justification rants of the likes of Brian defending Weldon and NZX.
Really really rich criticism of NZ market now coming from Brian but then, Milford has sold out of NZX so it's ok to write such articles as the one today?
Funny but never saw Brian Gaynor criticising Weldon once during Weldon's gross mismanagement of the NZX before he resigned.
[QUOTE=Balance;707426]
5. little investment back into the industry even while the NZX profiteered through ever higher charges.
/QUOTE]
Prime example of above point:
https://www.asx.com.au/asxpdf/201308...mkwp62s5n4.pdf
https://www.nzx.com/announcements/239962
ASX provides (FREE) all announcements and attachments going back as far as can be - to assist all investors, big or small, to obtain information to make investment decisions.
NZX will only provide attachments for last 6 months, after which you have to pay!
And this NZX says it is changing its way (big hoopla about strategy reset etc etc etc in Nov 2017) to encourage more market participation !!!!!!
article in nbr saying another ipo is by passing the nzx ,, gee wiz no luv lost for the nzx
the old hag does get lucky now and then and gets one with a bit more life
Another by-passing NZX:
http://www.scoop.co.nz/stories/BU180...ist-on-asx.htm
NZX - fit only for backdoor jobs which NZX wholesomely embrace despite clear evidence that it brings the NZX into disrepute. You have to wonder why the NZX persists and the answer points to the old hag being desperate enough to perform any trick to obtain every coin thrown its way.
Pathetic and shameless.
http://www.sharechat.co.nz/article/a...e-listing.html
Yet another disastrous listing (Energy Mad) a few years ago will now be given a backdoor entry for yet another opportunity for investors to lose out big.
Roll up .... roll up! NZX is showing it haggard wares!
Energy Mad, Mad Butcher and soon, NZX Madder?
SuperLife, the funds management business owned by NZX, has a 45 percent stake in Energy Mad
:laugh:
Other people's money - NZX could not give a stuff.
But touch the NZX's fee gouging revenue stream (like charging for information provided by other exchanges free to assist and encourage investors to participate ion the market) and watch the clowns react! The squealing will be worse than the old hag in the street corner exhorting her back door wares!
http://www.nzherald.co.nz/business/n...ectid=10494028
http://www.nzherald.co.nz/business/n...ectid=11715672
Warnings after warnings about the fallacy of backdoor listings - yet the NZX persists in encouraging them, and now with Energy Mad, even directly participating in one!
Why?
The fact that investors lose tens of millions of dollars year after year from back door listings is not a problem for the NZX - as long as the NZX makes a few hundred miserable thousand dollars via fees from them.
There is a word for such behavior - 'mercenary'.
I have a couple of apps across my phone/tablet that are not updating with NZX data, ASX data is updating
This is since Thursday- (last price was Thursday)
The apps are Yahoo finance 7, Apple app Stocks and Stockmaster real time
Alternatively, what apps do others use to monitor your shares mores especially NZ ones?
It seems that the NYSE has a different - but similar? - slant on this matter. Spotify has recently listed without disclosing via anything such as a prospectus; without any particular spread of shareholdings; purely to provide a market for "founder" shareholders. Perhaps we hope for too much from the NZX?
article in nbr suggesting its about time the nzx stood up and clamped down on off market trades , would improve there liquidity issues pretty quick .... but can you really see it happening?
NZX has stated it will implement in second half of this year but don't wait with baited breath.
Trouble is that the NZX is not about to go backwards 2 steps so that it can move forward 5 steps - it must be prepared to give some major concessions to market participants to get their co-operation. Otherwise, the brokers will shift more and more of their business to ASX. Ironical, isn't it that NZX thought it held the industry to ransom with its monopoly status but did not count on ASX emerging as a very very strong alternative!
The feathers on this goose have been well and truly plucked clean by Weldon and the previous board.
Brokers have been reinventing themselves into fund managers in the last 10 years - Craigs ($25 billion) and Forbar ($11 billion) have led the charge and their brokers are heavily incentivized to only have portfolio clients.
As you can see, 1.5% on $25 billion pays a lot of bills and a lot of fees for Craigs - $37.5m. Much more lucrative than mucking around with talking to clients!
http://www.nzherald.co.nz/business/n...ectid=12028941
The good ones get sold - forget about listing on the NZX with all of the baggage and inconvenience.
Meanwhile, NZX is busy wanting investors to back the latest backdoor job - Energy Mad.
Not sure who is mad - mad enough to see a stock go from 85c to 1c (as in MAD) or NZX trying to backdoor MAD!
What odds are there on this http://www.nzherald.co.nz/business/n...ectid=12029155 listing?
TBF - It's hard to see where the next-leg-up growth is coming from?
There are plenty of areas they are not delivering to . In addition to this there are plenty of add ons these guys can do and different “ bags” they can put out ... whatever the latest fad is , GF, Atkins, Vegan, Paleo.
currently NZ”s 3rd biggest food retailer behind Foodstuffs and Countdown .
https://www.nzx.com/announcements/316551
A start but why such a long consultation process?
all the self interested back an forth haggling i presume
Wonder if they get it about the lack of liquidity causes traders not to trade as the cost of business is to high but also that businesses may not to list as well , mainly as liquidity can affect the optimal capital structure a business can use to price a business.
http://www.sharechat.co.nz/article/8...t-trading.html
The Wellington-based company is considering introducing a $50,000 threshold for investors to trade stocks outside the formal secondary market
lol so they will increase liquidity by bringing all the odd lot orders to market , golly gosh wish i was a s/h going to the s/h meeting friday i would be asking serious questions.
Extremely sobering to note NZX track record of listings in recent times :
CBL,
Wynyard
Intueri
Snakk
Veritas
Plexxxure
Orion
Tegel
Metro Glass
Mostly useless companies in conjunction with a few equally useless brokers and promoters (Forsyth Barr deserves special mention) who are very good at hoodwinking the investing public - seem to list on NZX.
Be careful out there, folks.
The NZX as is where is - not an entity dedicated to protecting and safeguarding the interests of shareholders and investing public. Just a pure unadulterated profit and greed driven organisation devoid of ideas and direction.
Cases in point:
NBR headlines about NZX showing how useless NZX really is :
1. NZX dairy company, Keytone chooses ASX for listing (legacy of wunderkid Weldon and his sleeping board of directors who priced NZX fees out of the stratosphere for the miserable services it provides)
2. NZX wooing Paul Hyslop's Zoono group to list on NZX (refer Paul's past activities with Wislon Neill and with Fletcher Paper shares - http://www.nzherald.co.nz/business/n...bjectid=161850)
3. ExCEO Tim Bennett tipped for role with Kazakhstan (ironical, isn't it? He was promised multi-growth options bequeath by wunderkid Weldon and Chairman Harmos and found a pile of dog poo instead at NZX!)
If it is not so sad for NZ and NZX, NZX would actually be so funny as one huge comedy show!
http://www.nzherald.co.nz/business/n...ectid=12032112
All valid points from Brian Gaynor but credibility wise, it's all crocodile tears from him and his kind who supported the 'fee-grab-less-services' and 'highway or my way' strategy of Weldon and his sleeping board plundering the NZX of a future.
"Can the NZX survive as a standalone entity while other small stock exchanges are being bought up by large global companies?"
"But one of the NZX's major problems is its two-market structure. The largest market, in dollar terms, is where brokers facilitate trades off-market without offering these deals to on-market participants."
Rich for Gaynor now to talk about NZX being taken over when he was so effusive of Weldon 'successfully' fending off an ASX takeover. Turned out that would have been the best thing to happen to NZX and NZ Inc.
Two market structure? Nothing new there as NZX operated on the basis of one rule for itself and the big boys, and another rule for other market participants.
NZX could have been so much more but day by month, is becoming lesser and lesser even though it is already a miserable little exchange compared to ASX and other exchanges in Asia.
more grim news ... comvita , fbu potentially on the T/O radar maybe
Seem NZX main board has a problem with NTL,showing the price as .016.My ASB price is at .015 with 347382 shares sold.Anyone noticed any other errors?
https://www.nzherald.co.nz/business/...ectid=12045285
More than $3.2 billion of listings left NZX in last 2 years - takeovers, delistings or companies going belly up.
And huge crocodile tears again from Brian Gaynor lamenting the state of the NZX.
Well, NZX is reaping what it sowed under Mark Weldon - profits above all else, 'my way or the highway' obnoxious management & HR practices and a board sleeping after getting drunk from encouraging and abetting short term price gouging to obtain monopoly profits.
Poor NZX - no feathers left for the plucked goose to fly.
Have everyone received their Entitlement Number for the new NZX Bonds? Thanks
Entitlement Number? I received the offer today via my ASB ML account and they're wanting to know by 7 June '18 the amount I'll subscribe to, if I want to proceed.
For those applying online. They need CSN and Entitlement Nos. Should be in the Shareholder letter. They said they've emailed me but I did not receive it. Anyway, I rang them and got it over the phone.
We got our letter with relevant numbers yesterday.
The entitlement number is only sent to people with NZX shares for a priority pool.
If you aren't a shareholder and you want some of the notes you'll have to go through a broker.
https://www.nzx.com/announcements/321873
new pricing structure for nzx
Am i reading this right?
The new pricing structure will remove the current $1.31 per trade fixed fee and move to a fully variable or value based fee structure. This pricing structure now aligns with broker business models and will enable them to price for their services with more certainty
cant be $1.31 per trade i must be reading it wrong , discount brokers charge a minimum $30 sh.. that amazing profit if i read right. wonder if they will drop there rates for us poor buggers on the street?
To be fair, $30 a trade minimum barely covers the fees that accredited brokers and broking houses have to pay the NZX, and then there's the operating expenses these days - especially the regulatory and compliance costs!
One of the brokers I deal charged minimum trade $100 per trade and even then, he left the industry due to the stifling compliance cost to be a fund manager.
$10 a trade is actually very very expensive if you get bad service while $250 a trade is very cheap if you get a good broker who helps you to make good money.
$30 is gouging the customer $250 is robbery even with service , if the nzx wants to encourage more trading retail pricing needs to fall in price as well.
By the way i see ig markets has recently dropped commissions to .08% for asx stock trades whats the cheapest in nz .30% ..... robbery
Is it just NZX is dearer, otherwise how do these other brokers - some in Aus for example only charge around $10??
most brokers in aus charge .10% for trades on the asx
No. The costs tends to be an amount per share with trades I've done in the US$10k to $20k range normally being US$1 (as this is the minimum charged). Costs have reached as high as US$1.60 for some trades (so can easily increase by 60%!). For Aussie trades they all appear to be A$6 but I've not made as many of these.
There is a monthly charge of US10 if you do not have at least US$100,000 with them (which can include cash on hand).
There is an american broker called Robin Hood that has no brokerage fees. I have not used them but have heard they’re a bit onf a disrupter.
https://www.nzherald.co.nz/business/...ectid=12104854
i found this funny
The NZX pricing structure announcement this week shows the stock exchange is finally travelling down the right road.
After decades of going down blind alleys and cul-de-sacs, chief executive Mark Peterson has steered the exchange in the right direction, although the bourse has a long way to go before it achieves its full potential.
The main problem with the domestic sharemarket is that it has been run for the benefit of brokers, rather than investors and companies wishing to raise equity
isnt the nzx changes announced this week only for the benefit even more now for brokers if they dont pass on the savings to retail clients?
Howabout connecting us to NZ today. Dont worry about the rest of the world
https://www.youtube.com/watch?v=vyZIDpjnJfI
piss poor outage
This on Stuff: https://www.stuff.co.nz/business/106...porting-season
And I call Bvll**** - the communication has been piss poor to non-existent.
What a pathetic joke of an exchange, I reckon the old pals over at Mongolia run a better exchange on paper...
https://www.nzx.com/announcements/322956
Looks like NZX fixed the today’s glitch, back to normal trading tomorrow.
#shoddy
I was trying to sell some shares today.
Maybe it could just open one day a week ?
That would save us all a lot of angst. We could prepare our shopping lists, all do our shopping on say Thursday, and get on with our fulsome lives during the rest if the week.
Would work for me.
Nice dividend and special today.