... even more to put into NZO ... ha ha
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They sure did. They bought the options then paid $1-50 to convert. i think they also bought the heads at well above that price and GAWD only knows what they did with PRC.
It would be nice to know what formal training in share trading the decision makers have had. I think the govt should only invest in infrastructure and keep my tax money out of the hands of this sort of gambling speculation. I would like to see them cash out and invest in something like gold and silver when they were that stupid as not to foresee this crash when so many of us were warning of the danger. Even a simple TA sell system would have had them out the market eight months ago. Macdunk
But if everyone acted eight months ago Duncan then would not the sharemarket have crashed then? It probably would have been known as the "great TA Crash".
Somebody with an investment newsletter now suggesting oil heading for $30 barrel on falling worldwide demand. Some oil companies I have invested in have just paid big bucks to close off their hedging contracts to take advantage of high prices.
aarrggh! :eek:
Well that's really the nub of the matter. ACC is not a 'normal' insurance coy - only one line of business and whilst there's cash to be stored, they don't have to replace a CDB when the big one hits. Just find it a little strange to be involved high risk investments - it just feels 'off norm'. The bottom line is that NZO is not a conservative investment.
Casa,
What proportion of ACC's investment is in NZO and the like?
NZO is only a high risk investment for the ACC if a significant part of their portfolio is in NZO and other equities with a similar risk and volatility. A highly conservative portfolio can have a very small proportion (no more than, say, 5%) in higher risk stocks, and still be called "conservative". In fact, it's a smart way to construct a conservative portfolio.
If NZO had tanked, which didn't look likely when they invested, the total potfolio return would have barely hiccupped, but if it becomes a $5 stock, it adds a layer of cream to the overall return.
As at June ACC had nearly $10 billion invested as - so even if NZO went broke only a hiccup
Cash Portfolio $571M
Reserves Cash $107M
NZ Index Linked Bonds $483M
NZ Bonds $4,668M
NZ Equity $952M
Property & Infrastructure $157M
NZ Private Equity $70M
Australian Equity $771M
Overseas Bonds $290M
Overseas Equity– Developed $1,940M
Overseas Equity – Emerging $96M
Other $35M
Total Reserves $9,569M
Thanks to all who sent their proxy to me.I have faxed this info to wellington.Note it is to be in by 10.30 am on monday and that as monday is a holiday the only way to now get it there is fax it. Anyone still wanting to send in their proxy should immediately fax it to 094888787.
Would remind all to consider that if resolution 7 and 8 are approved it also intends to mean your thoughts on future free hand outs to directors will be taken for granted.Will not even bother to go through the painful process of asking us in the coming years.Great scheme--directors are not allowed to buy on market as have inside info but at the same time grab all we get suckered into giving them.And in the future if these pass will not even bother to ask us.Anyone still wondering why the world is in a finanical mess. These people that so pride themselves as being members of the directors association are the industry leader.Woe to the vanquished at the bottom,when leaders like this are at the top.