Shareswatch Australia

In the midst this stock market turmoil there may be some battered down stocks which present the opportunity for investors to buy shares in quality companies at bargain prices. Three Australian companies that might fall into that category are Qantas Airways, Telstra Corporation and Onesteel Limited.

Well today the stock market correction that I mentioned was coming in February has certainly hit and the ASX All Ordinaries Index has fallen below the 5000 level yet again.  Is this latest share market correction something Australian stock market investors should worry about, or is it simply an over-reaction to global events which will have little long term impact on stocks and shares?

If you think that the Government’s plan to break-up Telstra is aimed at giving consumers a better deal then you are thinking just the way they want you to. The real reason the Government wants Telstra weakened is so that it’s poorly planned National Broadband Network (NBN) has an easier path into the broadband market.

Most investors in the stock market are today looking at some nasty losses in their portfolios. Some investors may have already sold shares and incurred losses while others may be nursing stocks that have lost 50% or more of their value since late 2007 and hoping they will recover some value. The question that confronts all of us now is: what do I do from this point onwards?

You have to pay credit where credit is due and is appears that Telstra’s CEO, Sol Trujillo, is a master of the rules followed by many management consultants and top level executives. Thus he was able to impress a number of analysts and financial journalists with Telstra’s recent half year financial results, when in fact there was not much to be impressed about.