Witmer Making Waves Down Under

The following was in Friday's column by Liam Dann in the New Zealand Herald:

Goodman ramped

Who the heck is Meryl Witmer? She sure knows how to move a stock price. Goodman shares shot up 24c in two days this week to hit a record of $2.50. The only obvious trigger was a tip by Witmer in US-based investment magazine Barron's. Turns out Witmer is a young(ish), glamorous-looking mega-star of the US stock-tipping industry.

A partner with the exclusive US brokers Eagle Capital, her tips in the Barron's annual Roundtable column are hotly awaited by US investors.

So when Witmer starting talking up an obscure food and beverage company on the other side of the world, Goodman Fielder was suddenly getting the kind of publicity money can't buy on stockmarket chat rooms and blogs all over America. Looks like Graeme Hart owes her a beer.

The surge in US interest is making the pre-float cynicism of local fund managers look increasingly misplaced, says Macquarie Equities investment director Arthur Lim. It is also a reminder of just how globalised equity markets have become. "Increasingly, the key to these floats is that the destiny of the company is no longer in the hands of Australasian investors," he says.

This is a timely reminder for us not to pile in when someone we admire makes a stock selection. And if you do, make darn sure you use a LIMIT order. (I always use limit orders, and remind readers to do the same to the point of annoyance, I'm sure.) It's better to see your order go unfilled than to get whipsawed.

Comments

[C. Maoxian]

I've never heard that expression, "stock-tipping industry." Sounds about right, but makes me think of cow-tipping (which could be an industry in NZ).

[John]

Chairman,

I've never heard of it either, though I'm no expert on Kiwi references for various things.