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Kia Ora! It's Maxim here. I hope you enjoy the feeling that we are moving soon to ALERT LEVEL 2. Life will be close to normal! Today you will learn:

● FMA Cautions Retail Investors Against Piling Into the NZX
● Reputation Index: Air NZ Remains in the Top Spot
● Turners Automotive (TRA-NZX) Investors Update April 2020
● Review Auckland Int. Airport (AIA) SPP for Retail Investors
● 6 Rules For a Defensive Stock Market Investor to Select a Company
● Sky TV / Tourism Holdings / Kathmandu / PushPay - Top 10 Rises & Falls Over the Last 7 Days


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FMA Cautions Retail Investors Against Piling Into the NZX
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Wholesale investors didn't go on the same spending spree that retail investors went on in April. While wholesale investors sold more than they bought, retail investors bought a lot more than they sold. 

Retail investors are holding shares for significantly shorter periods of time, indicating a “concerning” increase in short-term and ‘day-trading’ activity.

Even market professionals find it hard to ‘time’ the market in a turbulent environment, and the risk of significant losses is a regular challenge.

For retail investors to attempt the same is particularly dangerous, and likely to lead to heavy losses – losses that could not happen at a worse time for many families.

Source: Jenée Tibshraeny
Reputation Index: Air NZ Remains in the Top Spot
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The latest Colmar Brunton Corporate Reputation Index shows that Air New Zealand remains in the top spot, for the sixth year in a row, followed by TVNZ who moved up one spot up in this year's index.

The survey was conducted in December before the onset of Covid-19, however an April read of New Zealanders show the top companies' reputations remain intact.

Despite Air New Zealand and TVNZ feeling the economic strain from the pandemic these brands were likely to make it out the other side of the crisis as they had strong reputations.
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Global data shows that brands that have a strong reputation and a high level of trust are much more likely to weather the storm and also recover more quickly in times of crisis. Any brand that is stronger in terms of reputation is going to fare better than those are weaker.

Even though businesses have been really decimated, for example, Air New Zealand; there's no doubt that their business has changed beyond recognition.

However, New Zealanders still have a real sense of trust in that brand and there's trust that [it] will find a way through and they want to see them succeed because there is an element of pride that goes with that.
Turners Automotive (TRA-NZX) Investors Update April 2020
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🕑 4-minute read

CEO Todd Hunter told us that three of Turners’ four businesses, insurance, finance and credit control were essential services and operated through the lockdown.

However, Turners’ main auto retail business was not deemed essential but still managed to sell 100s of vehicles online during the level-4 period, which it is now allowed to deliver.

 
Learn More Now
Review Auckland Int. Airport (AIA) SPP for Retail Investors
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🕑3-minute read 

Recent Auckland Airport’s (AIA) capital raising had received a few questions around the potential for dilution of their holding.

The issue was that in a $1.2b raise, $1b was by placement and $200m was a share purchase plan (SPP) with a $50k limit.

New Zealand Shareholders Association (NZSA) has continued to engage with AIA, its chair and Jarden post the announcement to give feedback on the size of the SPP relative to the placement and to gain assurances of how AIA would provide a fair opportunity for existing retail shareholders.

In this article you will learn the summary of this share purchase plan from Tony Mitchell, Chair of NZSA.

Learn More Now
6 Rules For a Defensive Stock Market Investor to Select a Company

📊 Here are rules created by Benjamin Graham, author of The Intelligent Investor.

1. Avoid companies with total market value less than $2bn.

2. Go for the companies whose current assets are twice their current liabilities.

3. The companies must have common stock earnings for at least a 10-year period.

4. The companies must have consistently paid dividends for at least 20 years.

5. There must be a minimum increase of at least one-third in per-share earnings in the past 10 years.

6. The company’s share price should not be more than 15 times the earnings of the past 3 years.

Do you think these rules are still relevant nowadays?

📈 Sky TV / Tourism Holdings / Kathmandu / PushPay - Top 10 Rises & Falls Over the Last 7 Days

🕑1-minute read

Sky TV led the market higher as investors anticipated sport resuming under level 2.

That is a key differentiator that people buy Sky telly for and there will be no other ways to watch the game if you can’t go to the stadiums.

Tourism Holdings has also been on a winning streak this week, up 25 percent. Investors have been encouraged by lockdown restrictions easing around the world and the prospect of trans-Tasman travel resuming.

Kathmandu advanced after it reported a surge in online sales earlier this week. Retailing will be permitted to restart provided social distancing measures similar to those in supermarkets can be implemented.

PushPay rose as investors continued to rally around the stock following its bold forward guidance. Even though the result wasn’t as good as what some parts of the market would have expected, its outlook was.

Auckland Airport retail investors who had taken part in the share purchase plan at $4.66 may now be taking advantage of the recent gain and cashing in.

QUESTION: What are your thoughts on it?

P.S. Is there anything else that you noticed this week worth sharing? Let me know and I'll see how we can distribute it in the community.
“Anyone who lives within their means suffers from a lack of imagination.”  — Oscar Wilde

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Hi, I'm Maxim, the human behind this newsletter.

I research and interview economists, profitable companies and NZ investors to find tools & tactics that you can use to achieve financial freedom!
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