Investing for income

[So_Cynical]

Correction. I meant to say that the rule I have heard is that you should not own more than one fifth (20%) of the average daily traded. For SND that would work out to about $1,110.

Thinking about this today.

As of the last SND annual report there are approximately 490 SND share holders that couldn't give a rats ass about what amount of shares they should or shouldn't hold..and if we combined all the share holders, of all the low liquidity stocks we could have maybe 12000 to 15000 people who couldn't give a rats.

There's a 100 reasons to buy or sell or hold any stock....its all up to the individual.

 

[robusta]

Thinking about this today.

As of the last SND annual report there are approximately 490 SND share holders that couldn't give a rats ass about what amount of shares they should or shouldn't hold..and if we combined all the share holders, of all the low liquidity stocks we could have maybe 12000 to 15000 people who couldn't give a rats.

There's a 100 reasons to buy or sell or hold any stock....its all up to the individual.

Could not agree more, there is a lot of opportunity in unloved low liquidity stocks IMO precisely because many investor's avoid them

 

[Bill M]

Someone pointed me in the direction of FIIG Securities Limited.

As a general query, how do you feel about handing over hundreds of thousands of dollars to people you've never heard of ?

The banks are one thing but what about the rest?

I wouldn't give them anything. I signed up with them a couple of years ago, within a couple of days a female broker with an American accent called me regarding what was available. I wasn't interested, then a couple of weeks later they called me again to get me into the CBA PERLS V issue via their broker firm allocations. I told them that I had a firm allocation with CBA anyway as I was a shareholder. About 3 Months later they cut off my access to their website. In my opinion, why pay a broker for something you can totally buy yourself through your online broker for $20? I didn't like the hard sell and subsequent quick boot of their website for not buying.

 

[MrBurns]

I wouldn't give them anything. I signed up with them a couple of years ago, within a couple of days a female broker with an American accent called me regarding what was available. I wasn't interested, then a couple of weeks later they called me again to get me into the CBA PERLS V issue via their broker firm allocations. I told them that I had a firm allocation with CBA anyway as I was a shareholder. About 3 Months later they cut off my access to their website. In my opinion, why pay a broker for something you can totally buy yourself through your online broker for $20? I didn't like the hard sell and subsequent quick boot of their website for not buying.

Thanks Bill, much appreciated

 

[Sir Burr]

I've been thinking about this for my SMSF and diversify a bit.

Anyone invest or thoughts about using a fund such as this:
http://investments.pimco.com/Products/pages/607.aspx

 

[So_Cynical]

I've been thinking about this for my SMSF and diversify a bit.

Anyone invest or thoughts about using a fund such as this:
http://investments.pimco.com/Products/pages/607.aspx

I'm assuming its an American fund so will use USD, would that be an issue for your SMSF?
would it be an issue for an Aussie super fund to own units in a US based fund..tax and admin wise?

 

[Julia]

We seem to have the same amount of posts

Probably the only thing you have in common.

I've been thinking about this for my SMSF and diversify a bit.

Anyone invest or thoughts about using a fund such as this:
http://investments.pimco.com/Products/pages/607.aspx

Why would you hand over your money for anyone else to manage? Read the Storm Financial thread.

 

[SuperGlue]

For long term investors that bought shares when share prices were low, here is a good way of earning income from your long term investments.

Dividend plus franking credit plus share lending income.

Please DYOR

http://www.interactivebrokers.com/e...tockYieldEnhancementProgram.php?ib_entity=llc

 

[tinhat]

I've been thinking about this for my SMSF and diversify a bit.

Anyone invest or thoughts about using a fund such as this:
http://investments.pimco.com/Products/pages/607.aspx

You might be interested in the Lincoln Indicators new (ASX shares) income fund. It's not on their website yet but they are launching it in the next couple of weeks - targeting the income oriented self financed superannuant type clients. There are some webinars coming up soon about it. Perhaps give them a ring if you are interested in attending a webinar. They've run more of a growth oriented ASX shares portfolio for years with decent returns. It might be of interest to you. I subscribe to their "Stock Doctor" market stats and analysis platform.

http://www.lincolnindicators.com.au/

 

[MrBurns]

I'm think of putting a truckload of cash in Telstra and Tab Holdings, seems they have excellent returns regardless of the share price ups and downs, remember I'm investing for income, any comments ?

 

[tinhat]

I'm think of putting a truckload of cash in Telstra and Tab Holdings, seems they have excellent returns regardless of the share price ups and downs, remember I'm investing for income, any comments ?

I don't follow TAH or the industry, but looking at the Reuters Thompson data, the analyst consensus forecast is for a drop in earnings of 50% for FY13. Is this something to do with the casino spin-off? So if you are looking at the current yield, it is expected to come back to 7% (at current prices). If you like the stock and if, like me, you believe the Austalian market is at the beginning of a cyclical bull market, you could perhaps dollar average into it over the next couple of months.

I own TLS. It's on a down trend since going ex-div. Yielding 8.7% on yesterday's close. You might be able to pick it up under $3.20 (3.15-3.20) - depending on how much it corrects in the short term.

With regard to TLS, Thodey said the dividend was good for the next two years so I'll take that at face value. There is enough free cash flow to cover it. The market is expecting them to do some capital management with the NBN windfall - we will have to wait and see what they plan to do with the money. The market also believe the management is turning the ship around. Let's hope so. Personally, I don't see any strategic advantage for Telstra in going from copper to the NBN fibre except for the buy-out money. The NBN will make its competitors more competitive in regional and rural areas. Telstra's strenghts are in the wireless network as long as it maintains first mover advantage, and in bundling content (fox) and delivering multi-stream (wireless, pay-tv).

Last year Charlie Aitken said buying TLS was "a no brainer" and I loaded up in October and topped up in December. I don't think TLS is one you can put away in the bottom draw though. You still have to preserve capital and there is still a lot of uncertainty and major structural change happening in the telecommunications sector. There is the risk of change of federal government and changes to the NBN rollout. Even if it's business as usual for the NBN there is risk of delays to the rollout. I'm certainly going to be keeping my eye on the industry over the next year or two because regardless of the return, no one wants to lose capital.

I've stated my opinion many times in this thread and on these forums (over the past six months), the one no-brainer, leave in the bottom draw, buy on the market is CBA. I reckon it is the one stock I can buy and never want to look at the share price again. at $48 a week or so ago it was compelling. At $50 it's still a buy I reckon. You will still be looking at almost 7% return next financial year based on consensus forecast dividends of 346c. According to my calculations the maxim that it is better to have your money in shares in the bank rather than in the bank still seems to be true.

Good luck.

 

[MrBurns]

Good luck.

Thanks for your input

added - Ive lost money listening to Aitken before.

 

[Boggo]

For me 'investing' is not really my approach, depending on how you define "investing".

Investment stocks do have a more stable or less erratic behaviour even when applying tech analysis.

I am back in TLS again (TLSIOI) as of this morning because it meets a set of criteria but normally I only trade it twice a year a couple of months out from it going ex div and capitalise on the run up or the div or both.

There are a number of other stocks that fit the tech analysis/income/investment criteria outside of the 'Mum and Dad' type stocks.
An example of those is SKI (I currently hold in my SMSF), pays a reasonable dividend and recovers quickly from going ex and can be traded to advantage as well.

It does make paying the power bill a bit more acceptable too if you are in SA or Vic.

(click to expand)

 

[McLovin]

added - Ive lost money listening to Aitken before.

I've never heard Charlie Aitken talk down the market.

Here's what he was saying just before the GFC...

Raging share market bull Charlie Aitken, head of institutional dealing at Southern Cross Equities, isn’t backward in coming forward.

Aitken made the front page of The Australian’s business section on Wednesday accusing various brokers of shorting Fortescue Metals Group whilst predicting the stock could hit $15 within 12 months. It rose 26c to $7.65 yesterday and was steady in morning trade.

Consider this passionate advice given to subscribers of The Eureka Report on November 2 last year [2009], one day after the All Ords peaked: “I urge investors to use any weakness in domestic banks due to US investment bank sub-prime issues as a buying opportunity.”

Hmmm, at one point the Big Four banks had collectively tanked by almost 40% as $100 billion of capitalisation disappeared. Let’s hope Charlie’s Fortescue prediction is more accurate than his advice on bank stocks.

On September 19 last year [2007] Aitken told Eureka subscribers that “the whole sub-prime issue is over-stated and losses/defaults will be nowhere near where the armageddonists believe.”

He even became something of a media critic with the following:

Over the past two months all the financial market armageddonists and super-bears have been dusted off and wheeled out of the closet. For some unknown reason in financial markets if you are bearish you are seen as smart. The financial press also loves running a super-bear story, and it is amazing how few truly optimistic or even realistic people get an outing in the press. I suppose good news doesn’t sell newspapers.​

It is true that the media is largely driven by negativity, but journalists also love colourful descriptions of the prevailing consensus, which is what made Aitken a media star during the bull market.

http://www.crikey.com.au/2008/03/14/raging-bull-charlie-aitken-not-tamed-by-bad-bank-call/

In fairness we all make mistakes, although this one seems to have been a howler.

 

[MrBurns]

I've never heard Charlie Aitken talk down the market.
.

If you ever see him on Lateline Business or The Business as it's been ridiculously renamed you could overlay his comments from one year to the next, they never change, he really seems as if he hasn't a clue.

 

[Bill M]

Hey Burnsy, I just thought of this thread when I saw the following video. "Constructing an income portfolio". General stuff but interesting, I own a few of the stocks mentioned. You might need to join up if you are not a member already.

Link: http://www.finnewsnetwork.com.au/archives/finance_news_network20371.html

 

[MrBurns]

Hey Burnsy, I just thought of this thread when I saw the following video. "Constructing an income portfolio". General stuff but interesting, I own a few of the stocks mentioned. You might need to join up if you are not a member already.

Link: http://www.finnewsnetwork.com.au/archives/finance_news_network20371.html

Thanks I'll have a look