High Yielding Shares Again

SVW trading will below NTA...I'm in at $6.10 and into the drawer.

eyespy said:
iron ore price still dropping.

i got into fmg, lost 15%....got out. small miners like fmg punished more than bhp and rio , anyone know why ?

anyhow, hard to pick bottoms.
Click to expand...

Lower cost producers have significant advantages in a lower price environment....many of the tiddlers will struggle to weather this storm. BHP and RIO will still be here for the next cycle.
 
Erko said:
SVW trading will below NTA...I'm in at $6.10 and into the drawer.
Click to expand...

Interesting chart that one seems to fall under the central idea of uncertainty..

imageChart.axd
 
Yeah, ugly chart. Back of the envelope NTA per share around $7.50, daily buy back in place....I have drunk all the Stokesy koolaid so I will likely average down if it goes that way :D
 
This thread has had me watching BHP and some others as a spectator only

BHP Billiton at $31.70
Rio Tinto at $56.41
Fortescue Metals at $2.69

And an old favourite that I'd made money on previously, Atlas Iron now at around 20c and down about 80% over the last year
 
redwing said:
This thread has had me watching BHP and some others as a spectator only

BHP Billiton at $31.70
Rio Tinto at $56.41
Fortescue Metals at $2.69

And an old favourite that I'd made money on previously, Atlas Iron now at around 20c and down about 80% over the last year
Click to expand...

I am the same.

My #2 Watchlist is BHP, RIO, WOW, AFI, ARG and MLT.

None fit my >5% FF yield, however I do need to diversify a bit. I wont be jumping in for the sake of diversifying though.

Whilst I believe the miners will be around a long time, its just so hard to put cash into them at present. WOW also has stopped me pulling the trigger because I feel Masters has a looooooong way to go yet, which I feel is dragging WOW down a bit. The other 3 Diversified Financials yield a bit low yet for me to jump in. I have them there out of curiosity from conversation here and ASF. Perhaps when I get to my $$$ figure I need to get to, I will then put the Dividends towards some small purchases.

I will continue to add to my current portfolio. Currently adding into NAB which at current price is 6.1% yield (8.7% grossed up), and even better at forward 2015 yield, which is better than all online accounts.

pinkboy
 
redwing said:
This thread has had me watching BHP and some others as a spectator only

BHP Billiton at $31.70
Rio Tinto at $56.41
Fortescue Metals at $2.69

And an old favourite that I'd made money on previously, Atlas Iron now at around 20c and down about 80% over the last year
Click to expand...

Yeah l must admit and mentioned it but l did thought bhp would have one good bounce left this year but , maybe still , maybe not. However next years a worry .

Notice to since that show on last wk about China's situation and the fall in ore prices , it's gone down a few bucks. Didn't need that right now.

Personally l still think it's good for at least one more good bounce but next year , it's all gonna be interesting where things go for these guys.

l've got FMG at 3.10 , chart looked good for a bounce but there you go. Gonna leave it, l'm sure as with the BHP it will recover at least once more for now with some profit in it .
 
MTR said:
So can anyone really go wrong buying Aussie Bank Shares any day of the week??
Click to expand...


NAB has been a dog for over a decade and a bit. It was $35 in 2001, higher than todays price. The company was hit by a succession of bad business decisions and the odd dodgy employee/trader.

But before then it had a stellar run.


See ya's.



PS. It went from $4 in 1988 to $35 in 2001. !!!
 
Nearly 1/3 of the top 30 companies are financial companies, money begets money ;)

I read somewhere recently that the banks margins, even at these days of lower interest rates are still much higher than in the heady high interest days, if they were the same, we would be paying around 3%, the house always wins. It's a Banksters Paradise
 
MTR said:
So can anyone really go wrong buying Aussie Bank Shares any day of the week??
Click to expand...

Only if you diversified across the entire banking sector,that way it cuts the worry factor down because of the spread ,but it also can go the other way very quickly,i don't think think one would do too well over time just holding one listed banking equity unless it was CBA,..imho..
 
The thing about our banks is , everybody needs a bank of some sort .
So all they have to do is dream up another $2 fee charge on something if the chips are getting low, that no body else in other countries would be silly enough to pay or not even complain about , or had even heard of such moronic fees in fact and bingo - there's another billion in profits for the year.
So you would assume with them being able to just keep doing that , on and on , unchallenged by anyone that can even ruffle their feathers , they should be safe shares .
 
Yeah at least it's something, but it's just one or two absolute drop in the buckets , that's taken years and real determination to get to where it is . Banks know that , they'll just wear them down and be on their merry way .
There are dozens and dozens of these charges and when that blows over it'll just be back to business usual.

It's not only banks it's become the Australian way in business and billing across the board , just take a look at any costs and bills for just about anything.

So you would just imagine their shares to continue on along with their record profits.
 
National Australia Bank is moving towards a settlement in a class action over late bank fees which could see the bank pay out compensation costs of up to $38 million.
Click to expand...

Read more: http://www.smh.com.au/business/bank...ass-action-20141112-11kro0.html#ixzz3K9GlExCS

National Australia Bank's full-year statutory profit for 2014 slipped 1.1 per cent to $5.3 billion
Click to expand...

Read more: http://www.abc.net.au/news/2014-10-30/nab-profit-slides-on-writedowns-rising-costs/5852958

That's 0.71% of their profits. Hardly putting any dents.

Cheers,
Oracle.
 
oracle said:
Look at their dividends.

Currently at $1.37 fully franked represents gross yield of 5.71% on purchase price of $34.27 and forecast to increase to $1.45 this FY. Their payout ratio is around 70% so reasonable buffer before their dividends has to be cut.

Lastly, they reported 3% increase in sales so they are still growing, nothing to worry there. With their economies of scale the 3% increase in sales can easily translate to >3% increase in profits. Hence, they have decided to maintain their net profit guidance for this FY of about 4 to 7% higher than previous FY.



Read more: http://www.smh.com.au/business/reta...disappoint-20141103-11gaaz.html#ixzz3I428qHba

Look at the facts. Over the short term market can be irrational driven by sentiment. I clearly remember 3 or so years ago when I was buying individual shares similar stories coming out when Coles was making strong gains over Woolworths causing its share price to go under $25. These things keep happening time and again. Bottom line is WOW is a solid business with good moats. They are the largest supermarket chain in Australia and Coles is still far way behind in catching up.

Cheers,
Oracle.

(PS: I do not hold WOW shares anymore since I now only invest in index ETFs)
Click to expand...

china said:
I am counting on my opinion that:

1. the all ords will continue to rise between now and next year
2. WOW is a strong business for the reasons Oracle and others on this thread have pointed out

If it remains stagnant, I hold for yield -at 5% yield it beats term deposits and equals resi IP
Click to expand...


WOW had it's AGM today. If you are still holding WOW shares China, it must be pleasing to know there is no change to their FY guidance. Which means expected Dividends to be around $1.45 ff this year.

From the AGM

Woolworths chairman Ralph Waters has reaffirmed the supermarket giant's full-year guidance, saying the market has made assumptions about the company that it does not share.

....

"The market appears to have drawn conclusions about the company?s outlook that your board does not share," he said.

Mr Waters said Woolworths still expects growth in net profit after tax in the full year to between 4 per cent and 7 per cent.
Click to expand...

Full article here

At $1.45 ff and share price of $31.70, the gross returns are 6.5%. Much better than term deposits.

Cheers,
Oracle.
 
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