This week Mitchell Sneddon has Bailador's David Kirk in the studio for a pre-recorded chat – don't forget you can still send your questions ahead of time
. Kirk of course is a former chief executive at Fairfax who is now running this intriguing LIC which specialises in mature stage technology start-ups. If you want Kirk's views on the 2016 market, click here to post your thoughts tonight.
Meanwhile, Kirstie Spicer and our estate planning expert Michael Tsotsos will host an interactive webcast at the special time of 7:00pm tomorrow night (Tuesday 9 February), on how to protect your family with an estate plan: This 'evening event' is an experiment from the Eureka team to gauge whether our subscribers might sometimes be more comfortable participating in webcasts which are set later in the day – this is your chance to put your questions forward
while our team outlines what you need to think about.
Stay tuned for more webcast events and video content throughout this February reporting season.
Growth First model portfolio
The growth first portfolio is up approximately 16 per cent, despite holding onto two very poor performers in Capitol Health (CAJ) and Empired (EPD). With an inception date of July 1 last year, This equates to an approximate 25 percent out-performance against the ASX200 benchmark.
Capitol Health (CAJ) reported its half year result today, with the flagged weak result clearly displaying the effects of regulatory uncertainty and disruption to referral patterns. The stock is a one percent weighting in the portfolio. We will have a detailed update next week.
DWS (DWS) reported an excellent interim result with 50 percent earnings growth and an interim dividend of 4.75 cents. The stock has been a strong performer increasing 35 percent since our 95 cent purchase.
In relation to our Growth First stock Qube Logistics (QUB), Asciano (AIO) today announced that it has decided the Qube consortium bid is a superior proposal to the Brookfield offer, and they now have 5 business days to match or exceed the Qube offer. We are watching the situation closely, and depending on the final price and structure believe the Asciano ports business would fit very nicely within Qube.
We mention Pental (PTL) today (see here: Hunting for the next Blackmores
), as a stock that could benefit from the Chinese consumer demand for Australian clean and green products.
With reporting season underway, we will be on the lookout for opportunities to utilize some of our 39 percent cash balance.
- Simon Dumaresq
Income First model portfolio update
This week, the Income First model continued to perform well in volatile markets. The demerger of Clydesdale bank (XYB) from NAB was a key focus with the share price of NAB underperforming. That said, CYB has lifted since listing, and the portfolio intends to sell its CYB at market open tomorrow, increasing its cash position (for more on NAB – CYB click here).
Looking forward, the portfolio’s main focus will be on company reports. Pleasingly, DWS Limited has this morning provided a strong half-year update and dividend, which will contribute to the portfolio’s yield and performance in the coming six months.
Finally, there will be a focus on assessing new opportunities for income stocks as financial reports for the period are released throughout February. We remain comfortable with the current mix of stocks at this stage.
- James Samson
LIC model portfolio
It is business as usual for the LIC model portfolio this week with no changes. We will receive $545.076 in the account thanks to a dividend from BKI Investment Company that went ex-div on February 4. Magellan Flagship Fund (MFF) also declared a dividend of $0.01 per share with an ex date of the April 29. Keep an eye out for further dividend announcements from the others.
I anticipate Cadence Capital, Thorney Opp. and WAM Research to update the market with NTA announcements in the next few days. On another note, after a number of questions from members about AMP Capital China Growth Fund (AGF) I have decided to take a thorough look and give my two cents’ worth. Click here for my findings: AMP's China Fund: Agitating for growth.
- Mitchell Sneddon