AFF Member Stock Discussion

[I love to travel]

BHP - one of my portfolio faves - gift that keeps on giving

Is it too late to buy?

 

[cove]

Transurban, CBA and BHP are the three stocks that most investors don’t want to sell.
The big franked BHP dividend could cause some issues for those receiving age pensions.

 

[tgh]

Is it too late to buy?

It is never too late.. but time is a powerful tool.. my average buy price for BHP is $3.25...

 

[cove]

That means you stayed there when Kloppers and others seemed to be making mistakes.
We like that entry price.

 

[glasszon]

How concerned is everyone with the inverted yield curve in the US? Is it time to reduce the share holdings and be a bit more defensive with the portfolio?

 

[MARTINE]

The big franked BHP dividend could cause some issues for those receiving age pensions.

Never gonna happen for me

Post automatically merged: Apr 3, 2022

How concerned is everyone with the inverted yield curve in the US? Is it time to reduce the share holdings and be a bit more defensive with the portfolio?

Not at all
I buy in dips

 

[cove]

Interest rates are going higher as inflation hits hard . Our long term Government bond is much higher than Westpac expected already.
In the US the average 30year fixed mortgage is now around 4.7% but their interest is generally tax deductible.
Looks like Australian wages are going to increase by between 3% and 5% in the latest coming decision.
You start thinking Coles and Woolies will be hurt but the way these retailers are increasing prices it looks like they can maintain their profitability despite having large wages bills.

 

[glasszon]

Interest rates are going higher as inflation hits hard . Our long term Government bond is much higher than Westpac expected already.
In the US the average 30year fixed mortgage is now around 4.7% but their interest is generally tax deductible.
Looks like Australian wages are going to increase by between 3% and 5% in the latest coming decision.
You start thinking Coles and Woolies will be hurt but the way these retailers are increasing prices it looks like they can maintain their profitability despite having large wages bills.

That's my worry. Markets tend to under-estimate movements in interest rates, so I wonder whether it's worth selling some of the shares now and re-enter the market in 6-12 months, once most of the interest rate increases have happened.

 

[cove]

Yes we get tempted to sell stuff but so far all we have done is trim off the dogs. Sold CTT last week and we took the loss. Have to talk to Mrscove about her Booktopia shares as they are trying to grow without profits. Mrscove loves their supply/service.
Westoz and Ozgrowth takeover by Wilson is a very large win as we have many. They were two Euroz funds that we invested in every time the market slumped. Will need to find a new investment.

 

[burmans]

All other things being equal, or adjusting for a daily sector market fluctuation, I find that a company's share price on going ex on dividend date, the effective share price reduction = (dividend + franking cr -15%). Not coincidentally super funds pay income tax on dividends at 15%.

That makes sense mainly where super funds are the majority investors (as is the case with many if not most stocks these days).

 

[Brissy1]

Not sure if this is the right thread, but looking to park some SMSF cash, at call, while waiting for an opportune time to buy in again, might be a while.
Even in these pathetic interest rate times, still worthwhile moving $ to better interest return.
Macquarie paying 0.6% on their "CMA Accelerator Advised" accounts, whatever that is, and it seems unnecessarily bureaucratic as have to open a CMA also. ANZ SMSF Cash Hub Account
0.5%

Any thoughts on getting a (relatively) good interest rate for a SMSF "At Call" account?

 

[cove]

Went to see a financial planner with my SIL as she has started talking about retirement. Knowing bugger all about pensions for women we realised SIL can contribute a chunk into her superfund this year and claim that chunk as a tax deduction. That is worth a lot.
Cash deposit rates from our big 5 banks are too low for us to go there. Have reduced our bank hybrid holdings as inflation is coming.
This financial planning group believe that BHP dividend would be about $18 a share.
Pepper had a very good few days as their business is running strongly.

 

[tgh]

Any thoughts on getting a (relatively) good interest rate for a SMSF "At Call" account?

I think ya got buckleys…..

There are places that offer some return but with a risk profile that most smsf trustees will not touch.
Super fund cash reserves earning nothing are a necessary evil.
You can buy something middle of the road like an on market hybrid that will pay something but factor
in the risks noted by Cove above AND the Buy and sell costs if you use a broker.

 

[cove]

Secret inflation goes like this. Freddo Frogs have dropped in size/weight from 15 to 12 grams and no price increase.
Lazard which Macquarie Bank have as one of ten stocks to test their performance is now at a forward price earnings of 8 and a dividend yield of 5.3%.
Core Lithium and Firefinch have both jumped mainly on lithium news.
Yesterday we had our first Tesla ride in the all electric Uber long range twin motor model. It was quite silent and quick.

 

[There'sOnlyOneJimmy]

Not sure if this is the right thread, but looking to park some SMSF cash, at call, while waiting for an opportune time to buy in again, might be a while.
Even in these pathetic interest rate times, still worthwhile moving $ to better interest return.
Macquarie paying 0.6% on their "CMA Accelerator Advised" accounts, whatever that is, and it seems unnecessarily bureaucratic as have to open a CMA also. ANZ SMSF Cash Hub Account
0.5%

Any thoughts on getting a (relatively) good interest rate for a SMSF "At Call" account?

Still only a modest rate, but…
Macquarie have a regular Savings account that pays 0.95% on up to $250k (with a 4 month 1.1% introductory rate).
You only need to open a transaction account to be eligible.
I’m not 100% sure that a SMSF is eligible for this account, but I did see that companies & trusts are, so I expect the super fund to be OK too.

 

[Buzzard]

I've always said money invested in a bank is better than money deposited with a bank.

 

[cove]

That is a good thought @Buzzard.
If you cannot beat them you need to join with them as owners.

 

[MARTINE]

I've always said money invested in a bank is better than money deposited with a bank.

Always

 

[cove]

Today we received a modest allocation of Strandline which is STA. That placement must have been rushed.
When Wilson Asset Management take control of WIC and OZG they may adjust the holdings. We would like to get some extra CWP and ANG if Wilson does not feel these two fit in their portfolio. Cedar Woods at a years low would be pleasing. ANG is going ok with their business.

 

[Brissy1]

I've always said money invested in a bank is better than money deposited with a bank.

Yes. Absolutely. And nothing wrong with buy (quality) and forget. But attempting a bit of timing...not expecting as good as the wonderful post covid opportunities but sometimes nice to be in a position to do so with a portion of your funds.