I have been writing about Ireland for two years now and in the 31 posts that contained the word Ireland I said I used an NYSE listed bank stock or specifically said no position in IRL eleven times. Keep in mind some of the posts just had the word Ireland with no mention of the investment merits.
Based on how I read the email, the reader in question bought IRL off of my mentioning it in the following context;
Now the correlation for some less popular destinations I have written about.
iShares Sweden (EWD) 0.689
iShares Australia (EWA) 0.498
Irish Investment Fund (IRL) 0.249
Chile Fund (CH) 0.133
Followed by;
As an FYI I use individual stocks the vast majority of the time to capture the above countries but EWA is a personal holding and is held for a few clients.
So IRL got hit hard in the last couple of days and I have no idea why because, ahem, I don't own it. I don't even follow it. Arrrgghhh.
I have no idea if the reader did any research but if he looked at a chart of IRL and maybe compared it to the Irish benchmark ISEQ this is what he would have seen. Maybe with a little investigation we could piece together what has happened here but something is out whack even if you don't know what it is.As a reminder we are not handing out fish here. This site is about process not stock tips.
9 comments:
Can we identify the cause of IRL down turn? Is this an exdividend thing?
I know Roger does not own IRL, but is this now a buying opportunity? I would love an explanation. The explanation might help provide information on buying or selling.
This is off topic, but I cannot find the fundamentals for the index that DBA is going to track, or anything about it it after googleing several key words. I would like to investigate it if anyone knows where to point me. It is trading today. (But Fidelity has no info.)
Sharon,
click here
The guy who bought off your advice should not be investing his own money. Roger is not a stock tip newsletter.
LRW
I have owned IRL in my portfolio for awhile - there is no explanation for the runup in December (a Christmas present?). The current correction is simply returning the price to its proper discount to NAV. It was selling for a huge premium in December.
$GKX and dba , r=.82 per call to power shares
(Irish Reader) - The Irish economy is built around an enormous property bubble (like Spain), and every time not so good news emerges the general market takes a dip. Specifically the banks are hugely leveraged on the back of property, and much of the constituents of the Irish stock exchange have property related investments. 25% of the Government's tax take is property related - madness.
After a runup of 20% in the price of residential property at the beginning of 2006, the most recent data is that house prices have stalled. Cue selloff of banks and property developers. businessworld.ie has the stories.
If I was investing in Ireland right now I'd divest the banks (except maybe AIB who are more prudent in their lending) and look into superb companies like CRH which are much more diversified.
Don't listen to advise Roger's advise? Ha! Roger Can't fool me! He just wants me to dump my Icelandic Vodka Bar and One Way Canyon Trip Excursion so he can grab them on the cheap.
Now he is has got something going on in Ireland, and he is trying to throw us of the scent!
The Decoded Advise:
OK, he has mentioned “Sharon” (no doubt meaning sharing), and posts some sort of agricultural mish-mash. Agricultural sharing sounds an awful lot like a farming commune to me!
And Ireland has a history of this sort of thing:
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[The Ralahine Commune was a co-operative society founded in 1831 on the estate of John Scott Vandeleur at Ralahine, Co. Clare. It originated from a paternalistic attempt by Vandeleur to keep his tenants away from secret societies like the "Ribbonmen".
He brought a socialist called Thomas Craig from England to advise him on the establishment of the commune, which came into existence on the 7th of November 1831.
Vandeleur's utopian scheme crashed when he lost at the gaming tables, fled the country and allowed a Limerick relative to file for bankruptcy against him. The commune failed because Vandeleur had retained legal ownership of the estate].
More can be discovered about this wonderful investment opportunity here:
http://www.swp.ie/resources/The%
20ralahine%20commune.htm
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