I have written a lot lately about the New Zealand dollar drop being behind my coming out of Telecom NZ (NZT). In the short run this was the right move. I have been thinking I could get back in around $25 per share.
Along comes Barron's and the Up and Down Wall Street column(sub required) this week. The column points out a lot of what I have been writing about and also notes that the yield on NZT is comparable to Iraqi debt.
As one long time reader noted the stock has been very correlated to the currency. The Barron's mention could lift the stock for a day or two. The kiwi has fallen so quickly that I think this is an exaggerated move that will surprise most people and go down a couple of more cents than what consensus expects and I might get a chance at $25.
Wikinvest Wire
2 comments:
Forex casino , pure speculation,
Value currency = gold.
Hi Roger
Thanks for sharing your insights on NZT and the NZD. We have a holding of NZD and are panicking since it has fallen so low. Left the trade with our wealth manager and sadly he didn't advise us to get out of it last month but instead told us to hold on to it when we asked.
My wife only came across your blog last wk. Wish we could have done much more self monitoring instead of being so foolish and naive.
Do you mind sharing what it is about NZT that is appealing. What was the price you had bought it in your previous trade? If you've already covered this is a previous blog entry, pls refer us to it. Thanks again.
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