Mid Morning

It has been a while since I’ve posted anything about New Zealand. Over the last 12 months the NZ 50 Index is down about 17% versus 8% for the S&P 500. The NZ dollar in that time is up against the greenback by close to 10%. I sold out of New Zealand across the board a little over two years ago but have always kept tabs on what’s going on. I am quite certain I will go back in one way or another at some point. Here is a news item about Fonterra, a privately held dairy co-op that the management has talked about taking public but the farmers who belong to the co-op do not want it to go public as they feel their payout would be cut. The idea behind going public is to raise the capital to recreate their very successful model in other countries. New Zealand gets more attention as a forex destination than as an equity destination but I think the listing of Fonterra would raise the awareness dramatically and do wonders for the economy. New Zealand has a host of economics issues but that is not new. My thoughts on Fonterra are just thoughts and if it never lists we’ll never know. In trolling for New Zealand stuff I found a company called NZ Farming Systems Uruguay ticker NZS in New Zealand and apparently no pink sheet symbol in the US. It is a very small company that owns dairy farms all over Uruguay with an eye toward increasing it’s footprint into neighboring countries. The company is profitable. It has only been public...

Mid Morning

It has been a while since I’ve posted anything about New Zealand. Over the last 12 months the NZ 50 Index is down about 17% versus 8% for the S&P 500. The NZ dollar in that time is up against the greenback by close to 10%. I sold out of New Zealand across the board a little over two years ago but have always kept tabs on what’s going on. I am quite certain I will go back in one way or another at some point. Here is a news item about Fonterra, a privately held dairy co-op that the management has talked about taking public but the farmers who belong to the co-op do not want it to go public as they feel their payout would be cut. The idea behind going public is to raise the capital to recreate their very successful model in other countries. New Zealand gets more attention as a forex destination than as an equity destination but I think the listing of Fonterra would raise the awareness dramatically and do wonders for the economy. New Zealand has a host of economics issues but that is not new. My thoughts on Fonterra are just thoughts and if it never lists we’ll never know. In trolling for New Zealand stuff I found a company called NZ Farming Systems Uruguay ticker NZS in New Zealand and apparently no pink sheet symbol in the US. It is a very small company that owns dairy farms all over Uruguay with an eye toward increasing it’s footprint into neighboring countries. The company is profitable. It has only been public...

Friday Randoms

This chart comes courtesy of Michael Kahn in Barron’s. The support that became resistance on the chart will either matter or it won’t, given my expectations that this is a normal bear I expect it will matter but we’ll know soon enough. I stumbled across this article from theStreet.com about OEFs than own ETFs exclusively–so a fund of funds. I took the article to generally be skeptical which I agree with to a point. If I were buying an actively managed fund I would want the manager to use whatever tools he thought were best to use. If that included ETFs fine but that’s not what these funds are. The focus is funds of ETFs. There were several mentioned including the Wilmington ETF Allocation Fund (WETIX). The allocation as of January 31, 2008 (according to Yahoo Finance) as follows; iShares Russell 1000 Growth Index 54.56%iShares MSCI EAFE Index 25.41%Vanguard Emerging Markets Stock ETF 14.96%iShares MSCI EAFE Growth Index 5.01% The turnover is low at 44%, the description implies it uses an active strategy and it charges 0.70%. Well, what do you think of this? IndexUniverse reported yesterday that Ameristock is closing it’s five treasury bond ETFs (I’m using the word bond even though that term is only partially correct along with notes and bills); 1 year (GKA), 2 year (GKB), 5 year (GKC), 10 year (GKD) and 20 year (GKE). I wrote an article about these when they listed for TSCM that was skeptical of the second to market nature of these and the potential lack of utility for people that need a specific income stream from their portfolio....