Letters of the Week

NAB preference shares, picking the market's path, and which way for Wesfarmers?

NAB convertible preference shares

Could you please provide some information on the recently announced NAB convertible preference share issue? I would like to know if they are a good buy and if they can be traded on the stockmarket.

Shirley Quinn

Editor’s response: Philip Bayley recently wrote on this issue and the growing investor demand for hybrid securities (See: NAB adds to hybrid hype).

Waiting for new highs

In 2007, the Dow Jones hit a high of 14,280 points, while the Australian stockmarket sat at about 6,800 points. The Dow Jones has this week hit all-time highs, while the Australian stockmarket is still well below its 2007 level. As the Australian market is very strongly influenced by the US, I wonder whether the local market will hit a new peak in the near term or if there’s another slump on the way?

Name Withheld

Editor’s response: In the most recent video of Eureka Report’s series on The Great Sharemarket Return, James Kirby spoke to Anton Tagliaferro of Investors Mutual about the recent highs in the US markets and whether Australia will follow suit (See: Uncharted territory for retail investors).

Wesfarmers at a crossroads

I purchased some Wesfarmers shares in October 2011 but I’m starting to think it might be time to sell and instead invest my money in Australian banks or other stocks that provide a higher return. Perhaps Eureka Report could publish an article that looks at Wesfarmers and its value for investors?

Editor’s response: You may be interested in Robert Gottliebsen’s recent article on Wesfarmers and its share price surge in the past few months (See: Retail wars: Wesfarmers readies for battle).

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