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Latest Q&A With Our Experts
Since the recent upgrade of thorn group(TGA) to a spec buy there has been very little news yet the stock price has plummetted another 12% or thereabouts, can't really understand why, do you think the market is just overly pessimistic about the stock making it fantastic value or do you think something may have changed since your latest recommendation? I bought a small stake(1.5% weighting) at $1.35 thinking I could add more if it got cheaper which it now has but due to the speculative nature of the stock and the risks surrounding it I am cautious as to whether or not to give it the full 3% portfolio weighting(the max recommended on the last update)
Hi, With the conversations concerning options in recent questions. I am interested to know what advantage Investment managers in the following report to shareholders would gain from selling shares to take up the options. Why bother? "Platinum Asia Investments Limited (PAI) advises that its investment manager and cornerstone investor, Platinum Investment Management Limited (PIML) has sold 21.325 million shares at $1.00 per share, pursuant to a block trade, and has exercised 21.325 million options at the exercise price of $1.00, thus maintaining its cornerstone investment of 50 million shares in PAI."
Now that the CAMPA preference shares have been converted to CAM shares, do you think that CAM makes an attractive investment bearing in mind that the high dividend obligation to CAMPA holders no longer exists, and the discount to NTA that exists with CAM?
Dear Gaurav I see a bit of activity on STO, Horny Capital have just purchased 48 million share at $3.84 so they and associates now hold 15.1% of STO. You recently rated the chance of breakup or takeover at 30%. Is this recent activity relevant to that thesis? Appreciate your thoughts regards Peter Fuller
Hi II team I would just like to hear your views on TPG now that Telstra mobile network will not be available. Surely they would not commit that amount of cash to get only 80 percent population coverage. They must have at least an agreement with Vodaphone to be able to roam on their network or better still some sort of merger arrangement so they stand a chance against Telstra otherwise I can't see it working as without this surely they are better not to build the network and do the best out of the NBN that they can and focus on their existing corporate business?
Hi Gaurav, Firstly, I own Telstra shares so it wont surprise you that I found your latest research most disappointing. Not because of its content, pretty hard to challenge most of your arguments. Probably more to do with the substantial downgrade of your price range. Honestly, the only main event that has occurred recently has been TPG's entrance as a competitor. This to some extent has been offset by the ACCC's positive decision. But to drop Telstra's Buy price to $3.30 seems extreme given that you had most of the detail on Telstra for some time. In all of your TV appearances and Stocktake etc Telstra was a Hold. There was no indication that it was a Hold with a miniscule margin from a sell. In other words this came as a surprise. In Management jargon we always had a saying, "No surprises". We had to keep people informed so that if your view is changing , bring people along with that change. So we have moved from $4 -$5.50 range to $3.30-$4.50 primarily based on TPG. From my view they overpaid on Spectrum. They are trying to build a mobile network in Singapore and Australia with no direct experience, that will take approx. 3 years and the ACCC decision didn't go their way. And they are considered a buy!! We still have to hear from Telstra regarding Capital Mngt and options to replace lost revenue. Maybe, just maybe your research builds too much pessimism into Telstra and a little too positive on TPG? regards David
I saw the question ‘What if a stock broker goes bust?’. I am also interested to know more specifics about this risk. I looked on ASIC's website to see how stock brokers may be regulated. I found a link on ASIC's website to the Stock Brokers and Financial Advisers organization. Their peak body is: http://www.stockbrokers.org.au. They should be able to advise what protections and government guarantees (if any) cover clients of their members and if any particular stock broking firm is a member or not of their body. Of course they are not there for the benefit or interest of customers but they should be able to advise what protections are in place. Maybe ask ASIC if they regulate brokers as deposit takers.
Here’s a bit more on share trading protections. There may be some information regarding stock broker accounts etc as there is a link to updates relating to the collapse of BBY. http://www.asx.com.au/regulation/regulatory-compliance/regulation-australia.htm. Here’s a link to the National Guarantee Fund: http://www.segc.com.au.
This document provides detail of the purview of the NGF: (https://fsi.treasury.gov.au/content/downloads/PubSubs/000192.pdf). The NGF scheme contributes to market confidence in the ASX by providing three significant forms of investor protection A. a mechanism for ensuring a clearing guarantee for ASX markets and contract completion guarantee for clients; B. a mechanism for investors dealing through ASX member organisations (stockbrokers) to claim compensation for the default, fraud or insolvency of a stockbroker in the circumstances set out in the legislation; and C. funding for significant systems development projects, through payments to the Securities Industry Development Account, which have had the effect of reducing transaction risk on the ASX.