news & comment -- market observations relevant to Upict

If Fonterra goes truly public on the NZX, as strongly rumoured, it will be a major event. The capital size of the NZ market will swell enormously, of course, since Fonterra slots right in at the top with Telecom. But the more dramatic consequences may occur in surprising quarters.

The number of small private investors in the NZX will not only rocket, but the focus from that sector will experience a major shift. This is because existing Fonterra investors are already 'returns' focussed, and would not understand or be interested in any other type of investing.

Up to recently (and with the exception of UpicT clients perhaps), the type of information that focuses on returns has by and large been witheld from private NZ investors, retained in the hands of bigger institutional players who can afford the proprietary data packaged in proprietary software from suppliers such as Thomsons in London, at a cost beyond the reach of most private investors. The tradition of private investing has consequently evolved without the luxury of that input. Denied the really useful fundamental information, private investors have followed schemes of so-called 'technical analysis' or their own individual systems that attempt to 'win' through playing the swings and roundabouts of market sentiment and psychological price-driving trends. Very very few would be adequately placed to analyse the fundamentals from company reports directly, and even fewer could directly access the expensive aforementioned proprietary information supplies.

The migration of existing Fonterra shareholders to the NZX would then form a truly powerful lobby with no interest in being similarly marginalised. And some will be just as interested in replacing their Fonterra holdings with other NZX shares that may yield better returns, rather than just hold on to them due to knowing no better. At the very least, many holders will want to know exactly how Fonterra shares measure up going forward -- and that is about returns, not price, as there may be no intention at all to sell. The emergence of an accessible low-cost tool like UpicT signals a scenario that is changing anyway, but this could be suddenly catapulted along ... (spurred on by a new level of interest from a block of soul mates with a similar philosophical outlook). It is no accident that the user will find neither 'technical analysis' nor crystal ball 'winks and nods' about global price trends on the UpicT site, nor any glitzy popup logos and the like to exasperrate users with plain 56k or cellphone internet connections.

UpicT is unique as an investment tool for the NZX in that it tracks the returns and pictures the all important Return-Rate, while staying affordable to non-institutional players. No doubt, there may be a substantial learning curve for some in initially getting to grips with the important fundamental elements in the more widely scoped share market. But as returns-based principles are essentially the same in all markets, the obstacles will largely turn out to be no more than terminological...("pay-outs" in one market become "dividends" in the other, and so on). One could do worse than use the huge amounts of really helpful material available free throughout the UpicT website to begin that journey. In any outcome this will prove nonetheless invaluable, adding a string to the bow that may be turned to for additional income earning opportunities on into the future.