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Abstract

cabin, the next year should have been stellar for the airline. My fear now is that they won’t make it that long.</p><figure id="8130"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*ZC5Tug5U0VDPoJ5ffIE4Sg.png"><figcaption>Screenshot from my online portfolio with Sharsies featuring Air New Zealand’s recent share prices</figcaption></figure><p id="1e69">Ordinarily, this kind of thinking would be considered too extreme, but in the wake of the <a href="https://readmedium.com/hainan-airlines-is-bankrupt-e7482bb385bf">Hainan Airlines collapse</a> in China, it seems now that anything is possible.</p><h2 id="f8be">Border Lockdown</h2><p id="6659">According to the <a href="https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12311645">New Zealand Herald</a>, New Zealand’s benchmark index dropped 3.4% yesterday. In the US, the S&P 500 fell roughly the same amount.</p><p id="dc9b">Analysts have blamed the worldwide drop in share values on the coronavirus in Asia.</p><p id="282e">All across China, businesses have either completely halted trade or reduced to partial operation. Goods aren’t even shipping within Chinese provinces, and trade between China and outside countries has ground to an almost complete stop.</p><p id="9517">Ports are locked up, and airlines aren’t flying. With everything having gone this far, businesses that relied on trade with China have been tanking and taking other companies along with them.</p><p id="a2b1">Port of Tauranga, New Zealand’s largest port has also been hit hard by the coronavirus. The port relies on exporting lumber, and half of all lumber exporting from the port is shipped to China.</p><p id="4ba1">The shutdown of imports into China because of the coronavirus have contributed to shares for the Port of Tauranga falling 4.61% over the past week. Port shares have fallen 17% since the beginning of 2020.</p><p id="5789">Where a year ago, transportation and shipping were great investments in New Zealand, the industry is suffering heavily because of restricted access to China. As the coronavirus continues to carry on with no end in sight, analysts worry that the endlessness is causing the public to feel nervous. With public apprehension high, company share prices may continue to fall.</p><figure id="b9cd"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*m1wPInqpPtuyzwnZxubdlQ.jpeg"><figcaption>Photo by <a href="https://unsplash.com/@steve228uk?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText">Stephen Radford</a> on <a href="https://unsplash.com/s/photos/explosion?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText">Unsplash</a></figcaption></figure><h2 id="8583">Dealing With The Losses</h2><p id="ae4e">My position in Air New Zealand is down 12.50% when compared to the price I bought it for, and my position in Auckland Airport is down 14.92%. In the retail space, my position in Australia and New Zealand based retailer ‘Hallenstein Glasson Holdings’ is down 18.10% and represents my steepest drop in value in the last c

Options

ouple of weeks.</p><p id="b631">Wherever you are in the world, check the value of your shares, and if you need to, talk your options over with a registered <i>(fiduciary)</i> financial advisor.</p><p id="e14f">Personally, my plan is to wait it out. In spite of what happened to Hainan Airlines, I have<i> (wavering) </i>faith that Air New Zealand is going to weather this storm.</p><p id="9d26">I’ve lost thousands of dollars in the last couple of weeks, and the country of New Zealand lost $1.5 billion. However, losses aren’t set in stone unless you sell your position or the company tanks.</p><p id="97ed">*If the companies don’t tank and we sell our position while we’re down, we only guarantee that the losses become real. Instead, I think it’s time to hang tight and ride this crisis out until things return to normal, although it may take a year until things fully recover.</p><p id="cdb8">If you’re in a position where you need to liquidate your shares before things calm down, I really recommend getting in touch with someone who can give you real advice. However, if not, let’s ride this thing together.</p><blockquote id="9497"><p>*Nothing stated in this article is financial advice. This article contains general information, my opinion, and a heads up about what I’m planning to do. Please speak with a qualified and registered financial advisor before making any important financial decisions.</p></blockquote><p id="685b">If you have investments in New Zealand and want more information, Sharsies is hosting a <a href="https://www.crowdcast.io/e/qa-with-jene-tibshraeny">live web conference</a> with Sharsies co-founder Leighton Roberts and financial journalist Jenée Tibshraeny on Thursday February 27th from 12:15pm to 1:00pm GMT. All are welcome, and questions are encouraged.</p><div id="fc44" class="link-block"> <a href="https://readmedium.com/how-the-cult-of-oatly-nearly-brought-down-the-company-f8a8b0248940"> <div> <div> <h2>How The Cult of Oatly Nearly Brought Down the Company</h2> <div><h3>What too much of a good thing really looks like</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/1*2U3XA73J67WPMW-yOJSYcQ.jpeg)"></div> </div> </div> </a> </div><div id="ed71" class="link-block"> <a href="https://readmedium.com/netflix-may-have-lied-to-investors-and-the-public-fffb5e39a7f6"> <div> <div> <h2>Netflix May Have Lied to Investors and The Public</h2> <div><h3>‘You’ is higher rated than ‘The Office?’ Tell me you’re joking</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/1*LVK3xCCr8-3pH5K7a0b5dw.jpeg)"></div> </div> </div> </a> </div></article></body>

Air New Zealand Shares are Plummeting

We’re all waiting for the captain to tell us we’re going to be alright

Lately, I’ve been trying to check my share portfolio less often in an attempt to lower my stress levels. I’m someone who can overthink everything, which can lead to making a lot of unnecessary trades when I should just be leaving well enough alone.

However, this morning I woke up with a notification from Sharsies, my online broker for shares, ETF’s, and bonds in New Zealand. They sent me a notice inviting me to a video conference tomorrow where they’ll try to explain why we’ve all lost so much money over the past few days.

… lost what now?

I immediately logged on, checked my portfolio dashboard, and almost immediately passed out in my chair. All my shares have almost completely bottomed out; it felt like a year of careful trading was all for nothing.

These losses have unfortunately and disproportionately affected the company I’m most heavily invested in, Air New Zealand.

Ground New Zealand

Air New Zealand had been kicking goals lately and growing like crazy.

Screenshot from my online portfolio with Sharsies featuring Air New Zealand’s recent share prices

Recent reports of the airline have been positive and talk of growth into the ultra-long-haul sector. The linked report above talks about the airline’s possible adoption of a new bunk-bed design for economy class passengers flying routes over 16 hours.

If Air New Zealand was the first to adopt this cabin design, combined with other highlights including their high earning business class cabin, the next year should have been stellar for the airline. My fear now is that they won’t make it that long.

Ordinarily, this kind of thinking would be considered too extreme, but in the wake of the Hainan Airlines collapse in China, it seems now that anything is possible.

Border Lockdown

According to the New Zealand Herald, New Zealand’s benchmark index dropped 3.4% yesterday. In the US, the S&P 500 fell roughly the same amount.

Analysts have blamed the worldwide drop in share values on the coronavirus in Asia.

All across China, businesses have either completely halted trade or reduced to partial operation. Goods aren’t even shipping within Chinese provinces, and trade between China and outside countries has ground to an almost complete stop.

Ports are locked up, and airlines aren’t flying. With everything having gone this far, businesses that relied on trade with China have been tanking and taking other companies along with them.

Port of Tauranga, New Zealand’s largest port has also been hit hard by the coronavirus. The port relies on exporting lumber, and half of all lumber exporting from the port is shipped to China.

The shutdown of imports into China because of the coronavirus have contributed to shares for the Port of Tauranga falling 4.61% over the past week. Port shares have fallen 17% since the beginning of 2020.

Where a year ago, transportation and shipping were great investments in New Zealand, the industry is suffering heavily because of restricted access to China. As the coronavirus continues to carry on with no end in sight, analysts worry that the endlessness is causing the public to feel nervous. With public apprehension high, company share prices may continue to fall.

Dealing With The Losses

My position in Air New Zealand is down 12.50% when compared to the price I bought it for, and my position in Auckland Airport is down 14.92%. In the retail space, my position in Australia and New Zealand based retailer ‘Hallenstein Glasson Holdings’ is down 18.10% and represents my steepest drop in value in the last couple of weeks.

Wherever you are in the world, check the value of your shares, and if you need to, talk your options over with a registered (fiduciary) financial advisor.

Personally, my plan is to wait it out. In spite of what happened to Hainan Airlines, I have (wavering) faith that Air New Zealand is going to weather this storm.

I’ve lost thousands of dollars in the last couple of weeks, and the country of New Zealand lost $1.5 billion. However, losses aren’t set in stone unless you sell your position or the company tanks.

*If the companies don’t tank and we sell our position while we’re down, we only guarantee that the losses become real. Instead, I think it’s time to hang tight and ride this crisis out until things return to normal, although it may take a year until things fully recover.

If you’re in a position where you need to liquidate your shares before things calm down, I really recommend getting in touch with someone who can give you real advice. However, if not, let’s ride this thing together.

*Nothing stated in this article is financial advice. This article contains general information, my opinion, and a heads up about what I’m planning to do. Please speak with a qualified and registered financial advisor before making any important financial decisions.

If you have investments in New Zealand and want more information, Sharsies is hosting a live web conference with Sharsies co-founder Leighton Roberts and financial journalist Jenée Tibshraeny on Thursday February 27th from 12:15pm to 1:00pm GMT. All are welcome, and questions are encouraged.