Tasfoods, Transurban telecommunications, LICs and more

In this week’s Facebook Livestream, we discuss Tasfoods, Transurban, telecommunications, LICs and more.

Questions: 

• What are your comments on Tasfoods (TFL)?

• What do you think of Transurban being little more than a ponzi scheme? It has very high gearing ~95% I think, it leases all its assets, distributes most of its profits as dividends but never seems to pay off any of its debt but keeps rolling it over. Surely one day it will have to pay up?
• I'm starting to think we got sold a pup with Paul Keating's franking credits. On the surface, the abolish double taxation sounded great and many investors have done well out of it. However often what happens when the nanny state gets involved there are unexpected consequences.. One of which is skewing investors to income rather than growth stocks and some companies paying more franked dividends rather than reinvesting and innovation. Arguably, for those companies that do so that has made them less competitive both locally and globally. A stark example is Telstra/the banks vs CSL/Cochlear and now of course the franked income investors are scrambling for other alternatives as those franked dividends are unsustainable. I wonder sometimes what untold damage has been done to our economy..and I understand some other countries have wound back franking.. What are your thoughts on this?
• I'm thinking there is a real possibility that the internet in Australia will mostly be Fibre to the 5G tower. What's a good stock that would do well if this happens?
• I have a small interest in an unlisted company, Fodder King, which has an unique way of producing consistent high quality fodder using water management from conventional and other resources such as waste water from sewage, farming and mining( CSG).Their goal is to supply this to the graizier who struggle in dry periods. The industry and Gov is beginning to show encouragement, with grants and asking for proposals. Is an interview with the CEO possible?
• What do you think about risks and potential returns in investments in start up investment companies, such as Thorney Tech or other Thorney companies? If companies like this actively invest in start ups etc does it dilute the returns? I am looking at a 6 year return. Also would you please explain why it has a FPO listing?
• I have some Commonwealth Bank Perls VI (ASX: CBAPC) with a “Call Date” of 15 December 2018. According to the prospectus (P8) “ …This is the only date on which CBA may in its absolute discretion Redeem all or some PERLS VI (subject to prior written approval from APRA). It should be noted that approval is at the discretion of APRA and may or may not be given”. Under what circumstances would APRA approve this ? Can you provide some background information on how this APRA approval works?
• With the growth of data, I like the idea of owning companies that invest and build IT and telco networks and have done well with a NextDC investment. Was looking at Superloop who you’ve previously interviewed. I noticed that Bevan Slattery is moving from CEO to an Executive Director role. Also read that he’s involved with Megaport and wondered how much time he will be able to spend focussing on Superloop’s strategy? You described them in 2016 as high risk and a potentially high return proposition. Do you think they’re getting closer to delivering?
• You have made references to LICs that return 25% , 15% , over a 5 to 10 year period. I have looked at the ASX ETP lists which you suggested and I am unsure as to which LICs you are referring. Would you please be so kind as to list the LICs that return over 15% for a 5 to 10 year period.”
• Hope you bought some shares for the young fellow. Can you follow up an arbitrage situation for the following stock MUA. MITULA GROUP LIMITED. If you buy up to 20,000 shares @ 70c there is an offer from a Japanese group @80c. Perhaps Tom Elliott could provide some guidance?