Been thinking about things and I think taking into account RBNZ's move yesterday and the weakness of our economy relative to our trading partners there is a real risk of material downside to the currency even from here (about 66 cents U.S.). Great company with excellent prospects that is likely to face material increasing cost pressure with the currency, (albeit mitigated by the fact that a lot of sales are in Australia which doesn't have the currency weakness situation) Its been a great ride from just under $3 about 2 years ago. Today I decided to sell half and have a free ride with the rest.
Appreciate the openness on your moves and your reasons. Love your work !
Been thinking about things and I think taking into account RBNZ's move yesterday and the weakness of our economy relative to our trading partners there is a real risk of material downside to the currency even from here (about 66 cents U.S.). Great company with excellent prospects that is likely to face material increasing cost pressure with the currency, (albeit mitigated by the fact that a lot of sales are in Australia which doesn't have the currency weakness situation) Its been a great ride from just under $3 about 2 years ago. Today I decided to sell half and have a free ride with the rest.
I reckon the $Kiwi is in real trouble. 60 cents at some stage over the next year would not be a complete surprise in my opinion. Its really the currency that's driven my decision to reduce.
Last edited by Beagle; 10-08-2018 at 06:22 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Look what you’ve done beagle ...there’s a stampede to the exits
Many more to hear your news ....the slide probably will continue Monday
There will be a rush back through the entry door once they announce a big fat juicy divvy in this low interest environment. I don't see any substantial holders rushing for the exits and I put myself in that category.
Personally i can invest in air NZ and hlg as companies I can understand but I am neither an oil nor currency speculater.
So I try to strip out the speculation component from a decent company thinking that the spot price will eventually go up down sideways or whatever but in the long run a good company is still a good company and will shine through.
(unless the commodity or currency is so out of whack then it has to be considered.... which neither are right now)
put another way . You can swim against the tide but 6 hours later you are swimming with the tide.. can't believe I just came up with that!
Been thinking about things and I think taking into account RBNZ's move yesterday and the weakness of our economy relative to our trading partners there is a real risk of material downside to the currency even from here (about 66 cents U.S.). Great company with excellent prospects that is likely to face material increasing cost pressure with the currency, (albeit mitigated by the fact that a lot of sales are in Australia which doesn't have the currency weakness situation) Its been a great ride from just under $3 about 2 years ago. Today I decided to sell half and have a free ride with the rest.
Originally Posted by Beagle
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