What's on at Eureka Report and model portfolio updates

Don't miss our special income webcast with Robert Gottliebsen and James Samson, plus Webster Group's Richard Haire will share the secrets of a successful agribusiness.

Throughout the year we have been constantly showing Eureka Report subscribers how to get income in this volatile market: Now we have the webcast you must not miss! This Wednesday (October 14) at 12.30pm to 1.15pm I will be hosting  a special income event “Filling the income gap” with Robert Gottliebsen and our income specialist James Samson.

I’m looking forward to this event immensely as we get the wisdom and experience of Robert coupled with James’ active reviews of income opportunities across the market.

Separately, the studio team will be busy through the week as we line up a range of special guests. Tomorrow (Tuesday October 13) we have Richard Haire the executive chairman of Webster Group talking live (audio only) with Alan Kohler. Webster is best known for two things: A successful walnut farm and links with tycoon Chris Corrigan, no doubt Alan will fill out that picture for us tomorrow.

Later in the week on Wednesday Alan has two interactive studio interviews. At 10 am on Wednesday he will be speaking with Ross Fielding the chief executive of RXP, the technology consultants who work closely with the ASX. And on Wednesday afternoon at 2pm Alan meets Steve McGovern chief executive of Dubber which has created a patented cloud-based phone recording technology that it is selling to corporate Australia in ever increasing numbers. Remember you can tune into these events live and ask questions or catch them later on our website.

Meanwhile, here’s what our analysts have been up to during the last week:

Growth First model portfolio

There are no changes to the Growth First model portfolio this week. 

Despite the bounce in the market last week, the portfolio ended the week relatively flat. The portfolio is now up 9.3 per cent since inception. 

In individual stock movements Qube (QUB) had a strong week up about 10 per cent to $2.20. As we discussed last week, the Moorebank project is basically a free option at these prices. 

Empired (EPD) has had a strong few weeks, bouncing from $0.71 to $0.86. Further evidence of the strong conditions in IT services could be seen with the development of a conditional takeover bid for UXC by CSC. DWS, also in IT services has been a strong new entrant to the portfolio, and remains very cheap on a FY16 price-earnings ratio of 9, vs the sector average of 15. 

For the portfolio and the market generally there has been a higher than usual amount of companies that didn’t provide earnings guidance at their full-year result. Therefore the upcoming AGM season will be particularly critical as many companies use it as an opportunity to provide updated earnings guidance.

-- Simon Dumaresq

Income First model portfolio

Last week, the income first model portfolio performed well, with some rebound in the price of Dick Smith leading the line. In fact the share price was 10.5 per cent higher over the course of the week. There is still a long way for this to rebound in my view, with sentiment remaining thoroughly against the stock. Elsewhere, G8 Education shares fell slightly, after continued leadership issues, and question marks as to the search for a new chairman. I am comfortable that a patient approach will reap rewards in both DSH and GEM.

On balance, the other stocks in the income first portfolio are performing to expectations. I will continue to assess opportunities to add further to the portfolio, noting that the bank financial calendar will produce dividends in the coming quarter, as will the quarterly payers GEM and ARF.

-- James Samson

LIC model portfolio

No changes to the portfolio this week. In other portfolio-related news WAM Research Limited (WAX) went ex-dividend today. The fully franked, 4 cents per share dividend marks the first distribution received by the model portfolio. Tomorrow Magellan Flagship Fund (MFF) will go ex-divdend as well and on October 20 so will Cadence Capital Limited (CDM).

-- Mitchell Sneddon

International model portfolio

There are no changes to the International model portfolio this week.

InvestSMART FORUM: Come and meet the team

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