Rob Mercer tagged posts

New Zealand Stocks Undervalued

October 28, 2008 New Zealand Finance  No comments

According to a report released by Forsyth Barr, stocks traded on the New Zealand Stock Exchange (NZX) are currently trading at a median of 33.2% below their true value.

Even measured via a long run average prior to 2003, the NZX has been trading at a below value median of 8.2%, but this figure took an uncharacteristic sharp turn downwards in late 2007 to reach its current level of 33.2%. The NZX index has fallen over 1000 points since May, 600 of those have been since the post September “Financial Crisis”. It would seem that this trend will continue with the NZX falling further amidst the increased volatility of international markets.

Commenting on the report, Rob Mercer of Forsyth Barr research, said that while current prices are technically very good value for money, he does not expe...

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