Grand Angus escapes Doreen's daze

AFTER three weeks as a bridesmaid to Doreen Daze, reader Angus Hutchinson has pipped her at the post in the dash to the finish line. He's finished the financial year in style.

By InvestSMART · 3 Jul 2011

By InvestSMART ·
3 Jul 2011

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AFTER three weeks as a bridesmaid to Doreen Daze, reader Angus Hutchinson has pipped her at the post in the dash to the finish line. He's finished the financial year in style.

The mixed luck of our share racers - half finished in positive territory and half didn't - is rather indicative of the performance of the local market during the past financial year.

The ASX/S&P 200 is down 8.5 per cent since April but is still in positive territory for the 12 months just ended. In fact, the local market is 7.1 per cent higher than it was 12 months ago.

It's almost like one step forward and two steps back. Or is that two steps forward and one step back?

I'm sorry, all this volatility is making me a little dizzy.

Angus definitely has a clear mind. His star performer was Foster's Group, which is undergoing a takeover bid from SABMiller. The initial bid of $4.90 a share didn't please the board but there is speculation SABMiller might lift it to $5.50 a share.

Such a lift could bring board approval and the stock was buoyed on analyst expectations.

Angus's other picks weren't big jumpers - four of them fell during the four weeks - but rose just enough to keep him in front.

Even though he had our, and possibly the market's, worst stock in his 10, David Potts moved up a spot last week to finish in sixth rather than seventh place.

Richard Pritchard was our biggest loser, thanks to Gunns, Emerald Oil & Gas, Arafura Resources, Narhex Life ... well thanks to almost every stock in his portfolio except for Alkane Resources and BHP Billiton. Better luck next time Richard - you'll need it!

Penny Pryor

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Frequently Asked Questions about this Article…

How did the ASX/S&P 200 perform over the past financial year according to the article?

The article notes the ASX/S&P 200 was down about 8.5% since April but remained positive over the 12 months just ended, with the local market roughly 7.1% higher than it was 12 months earlier.

Who was the top performer in the share-racing contest and why did that stock do well?

Reader Angus Hutchinson's star performer was Foster's Group. The stock was buoyed by a takeover bid from SABMiller — an initial $4.90 a share offer and market speculation that SABMiller might lift the bid to $5.50, which could bring board approval.

What takeover details about Foster's and SABMiller are mentioned in the article?

The article reports SABMiller made an initial takeover bid for Foster's at $4.90 a share, the Foster's board was not pleased, and there was speculation SABMiller might increase the offer to about $5.50 a share.

What does the article say about market volatility and mixed portfolio results?

The piece describes the share racers' mixed luck — about half finished in positive territory and half did not — as indicative of the local market's performance, noting the volatility felt like 'one step forward and two steps back' and even made the writer 'a little dizzy.'

Which stocks dragged down Richard Pritchard's portfolio in the article's roundup?

Richard Pritchard was described as the biggest loser, largely due to holdings such as Gunns, Emerald Oil & Gas, Arafura Resources and Narhex Life, with only Alkane Resources and BHP Billiton mentioned as exceptions in his portfolio.

How did David Potts fare in the monthly leaderboard described in the article?

Although David Potts held what the article calls possibly the market's worst stock in his 10, he moved up a spot in the standings last week to finish sixth rather than seventh.

What overall tone does the article take about finishing the financial year for everyday investors?

The article conveys a mixed but slightly upbeat tone: some investors (like Angus) finished the financial year in style while the broader market displayed volatility, leaving many portfolios with both winners and losers.

Does the article suggest any specific next steps for investors reacting to these results?

The article does not give explicit investment instructions; it reports on contest outcomes, stock movers (like Foster's amid a takeover bid), and overall market volatility as context for everyday investors to be aware of.