The recent Kerry Hoggard insider trading case was the final straw. Here was one of New Zealand's bright stars - a business leader that had the interests of small shareholders at heart. Yet he was to be found out as nothing but a dirty insider trader. In the US Mr Hoggard could have expected a fine equating to three times his profit and a spell in prison - possibly three months minimum. However, in New Zealand, he had to pay back what he made and got a bit of bad press.
Insider trading is rife in New Zealand, and small investors are the ones that get ripped.
In the US share prices move sharply following announcements. In NZ they hardly move at all, maybe because all the news has leaked and the price has already reacted. The US has little insider trading and hence is a better place to invest. If the company fails to deliver in America, shareholders band together and sack the board. Happened at Brierley five years too late and at Fletchers seven years too late.