Welcome to our Q&A page. This is the best place to ask us questions that relate to stocks, recommendations and investing generally. Within those parameters, we'll try to answer any questions you might have, although at busy times it might take a few days for us to respond.
Latest Q&A With Our Experts
I need some advice please on an email received today from Link Market Services concerning a forthcoming Myer class action. There are pages of information about the need for eligible shareholders to either Opt in or Opt out. As I don't want to hire a solicitor to work out what it all means, is there someone there who could explain in simple terms whether there are any disadvantages to opting in. The only one I can see is that it may stop the shareholder from suing Myer separately at a later date which I would not be doing anyway. I can provide the documents if necessary. Many thanks, Julie
Bruce Brammall said in an article about downsizing your house that you have been your residence in for 10 years that a couple over 65 can each put in $300,000 each into super on selling your house. Well that is correct only if the contract of sale is signed after 1 July 2018. If your sale was before this date you cannot put any money into super if over the age of 65 on the ATO site. I hope that I stand to be corrected.
This morning I just read an article labelled "Shortens tax grab will hurt all". The proposed legislative changes regarding franking credits sound potentially very damaging to valuations of all companies paying franking credits as their yields will no longer be as attractive to investors. Especially high yielding stocks such as banks. I'm curious if the proposed changes were made how much of an impact you think this would have on valuations? Also do you think there could potentially be an increased interest in shares paying unfranked dividends or perhaps we could see some money flowing own out of bank shares and blue chips that usually pay franking credits into more growth orientated stocks and small caps that don't? Also maybe REITs and even residential property might be more attractive comparitively since all dividends would be unfranked under the new legislation anyway?
Hi InvestSMART, I have been reluctant to invest in property because (a) There are few tools to in valuing a house, aside from a smooth-talking agent and your one competitor (possibly a cashed up retiree) in the auction (b) There are too many variables in a house (size, location, condition etc) to be able to confidently value it myself (c) I would be investing most of my life savings in a single asset. By contrast, the stock market offers daily valuations by the market and experts like yourself, publicly available results, and the opportunity to spread the risk across a portfolio. Choosing a location and type of house is straightforward. However, it seems I would be investing my life savings based on little more than a gut feeling, which strikes me as risky and foolish. Can you recommend any strategies or tools for valuing property? Thanks Dave
James, I read with interest your musings on Virgin and Qantas. Whilst I do not ever consider buying Virgin but I took the recommendation (by another subscribed report) to buy into Qantas after a detailed report into their workings. Buy price $1.55. If you look back over the last six months I suppose you'd say there's not much doing in Qantas's share price but I'd like to think anyone would buy for the long term.
Noting the usual disclaimers about personal advice etc. Regarding Amaysim, what are your thoughts on selling now, thereby realising a loss but moving the money into a 'buy' stock? Perhaps this is a specific example of a general query - If you've taken a hit on a stock that is still a 'hold,' are you better off holding or moving that money into a 'buy'? If so, what general factors should you consider and in what circumstances might you want to do make such a move?
Hi Gaurav - What are your thoughts on Horizon Oil (HZN)? I noticed this article on Livewire recently which makes for a pretty compelling investment case - https://www.livewiremarkets.com/wires/us-100-oil-on-the-horizon Worth a closer look or do you believe the analyst has failed to identify some pretty significant risks? Many thanks, Matt
Hi Team, I have approx $60,000 in equities at the moment and I am significantly overweight individual shares. Would I be best to sell all my positions and reallocate to ETFS/LICs etc? my Current Portfolio consists of: TLS, MVF, VRT, TME, TPM, WOW, ANZ, VGAD (Small allocation), VTS (small allocation), BKW, and QBE. Many thanks
Is adding to your position at higher prices after the company's value has also increased "averaging down"?
If the price and value of a company you hold both increase over the years and the company once again dips into BUY territory (albeit at a higher price), can a purchase now be equivalent to "averaging down"? That is, enhancing the cheapness of your portfolio. Please assume you're below your maximum portfolio weighting.