Australia | Jun 08 2006
By Rudi Filapek-Vandyck
Nothing is as depressing as falling share prices. That’s exactly what investors have been seeing since the second week of May. It doesn’t help either that some of the market bears have started to roar again, calling for the return of a good old fashioned bear market.
And what to think about Macquarie strategists forecasting Australian share prices will be near their current price levels in twelve months from today?
Investment strategist Markus Mueller at Reynolds Stockbrokers has not turned bearish yet, but he acknowledges these are not the times to expect much from a struggling share market.
He advises investors should pay attention to what the traditional value investors are doing these days. For institutions such as Guinness Peat Group, ING’s Investors Mututal or Maple-Brown Abbott the current correction is pulling back share prices to levels where they see long term value again.
Look for changes to significant shareholdings by these investors, Mueller says, it may serve as a guideline of where long term value investors see the potential for smart investments.
We spotted a recent announcement that Maple-Brown Abbott has increased its holding in McGuigan Simeon Wines (MGW).
We also saw ING reducing its holding in Macquarie ProLogis Trust (MPR), while the Capital Group has become a substantial shareholder in SP Ausnet (SPN).
Guinnes Peat Group recently increased its stake in AV Jennings (AVJ), formerly AV Jennins Homes, a fact that has also been picked up by the colleagues at The Intelligent Investor.