16 June 2022

Here’s what’s new from Stockfox this week:

  • These NZ companies are being savagely sold down.
  • This electricity company is showing steady growth.
  • Hear David’s thoughts about the bear market on ‘The Mike Hosking Breakfast’ radio show.

Market Summary

One reason the NZ share market has been so weak this year is some of our leading companies are being savagely sold down. The NZX50 Index (black line) is down by over 15% in the past year. The top 10 members, however, including Fisher & Paykel Healthcare (NZX: FPH – gold line) and Fletcher Building (NZX: FBU – blue line), are down by nearly 40%.

While there are sound short-term reasons why they are weak at present, both are major corporations with sound underlying businesses. We believe it’s only a matter of time before investors start buying back in, so investors should keep a close eye on these shares for signs of an eventual turnaround on their fortunes.

What’s New

David was interviewed yesterday on ‘The Mike Hosking Breakfast’ radio show on Newstalk ZB, about the mayhem in the markets. He talks about bear markets and the impact on NZ from international developments, plus he also gives some hot tips about future opportunities. You can listen to the interview here.

Tip of the Week

This week’s tip of the week is for a company that distributes electricity and gas. The company’s core business is continuing to show steady growth.

See the tip here.

We’ve issued four new tips this week.

Vector (NZX: VCT) has a positive outlook, as it is likely to be resistant to changes in consumer buying patterns caused by inflationary pressures.

Brickworks (ASX: BKW) is a buy back because it has been badly hit and is showing a profit on our previous recommendation to take a short position (issued on 17 May).

We believe it’s appropriate to take a modest profit on Ollie’s Bargain Outlet Holdings (NASDAQ: OLLI) as it has reached a resistance point.

Auckland International Airport (NZX: AIA) stands to benefit from relaxed travel restrictions.

See more of our recommendations and analysis here.

Top Tips

The public receives many different kinds of services from businesses that help maintain our essentials needs both at home and at public facilities.

Here are our top performing service-related tips from the past six months.

See the performance of all tips here.

NB: These are examples of just some of Stockfox trading recommendations. They are not a reflection of the success of all Stockfox tips, nor are they necessarily an indication of the success of any future Stockfox tips. If you act on our advice, there is no guarantee as to the repayment of your investment or any particular rate of return.

Happy trading!