That's sad couta
Lesson ....always use charts where 0 (zilch) is on the axis
That way you know how much to go
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It's broken my 1MA line.
Still kicking myself not to drink and buy downtrending stocks.
Will keep topping up @$1.10, $1.05, $1.00, and $0.90 (next month)
Technical analysis is one thing and I absolutely agree that a clear break of the 200 day MA should be serious cause for concern as a separate issue all of itself but for my money I always use TA in combination with fundamental analysis and most of you will be well aware I have voiced my concerns on several occasions regarding the veracity of some of the new products and lending methodologies than HNZ have recently introduced, (I finance, harmony loans, lending on no / low deposit on Holdens to name the main three).
That HNZ appear to be targeting the unsecured consumer market and dairy as two key areas for growth as stated in their half year report released earlier this year, is something I have found profoundly concerning and lead to my exit from the stock in tandem with my concerns surrounding the extremely serious collapse of the dairy price. Given my concerns regarding new product roll-out and Harmoney's initial losses, Is it a coincidence that the director in charge of new product development has now resigned / was pushed ?...perhaps my concerns have / are echoed in the boardroom ?...you decide for yourselves.
For my money if I want to invest in a finance company targeting unsecured loans, (I don't), that's what I'd do and if I want to invest in a quality bank with conservative lending policies, (I do but are there any left ?), that's what I'd do. HNZ is a hybrid of both and in my view will inevitably suffer the inherent consequences of a cooling economy with substantial labour force redundancies affecting its unsecured and poorly secured loans as well as specific losses attributable to especially problematic area's like dairy / sharemilking, as will the other banks for that matter. There is simply no plausible way sharemilkers in particular can meet their loan obligations with the dairy pay-out starting with a 3 handle, (that's where I see it going) in FY16.
To their credit the BNZ are running survivability workshops, (there's some other name for them I forget), teaching dairy farmers how to survive this crisis...I can't help wonder how proactive HNZ are in working with their dairy customers...maybe someone should contact the company and get some comfort for other shareholders around how they're managing the dairy issue ?
Where's our good friend percy these days..haven't seen much posts from in past few days...
fuuuuu :(
Bring back the happy days of $1.41.. The SP of stocks reflects this rubbish weather. At least ATM, SCL & THL looking bright-ish!