Financial Sector Opportunities?

[ernie]

With the banks taking a hammering, I was looking at other "financial" stocks that may have been taken along the bearish ride. What particularly caught my attention are the fund managers and those that service the supernnuation industry. Taken a look at a few and certainly the fall in prices have corresponded with falls in funds under management (FUM), but with compulsory super contributions and high levels of share ownership in our population methinks that it is reasonable to expect FUM to eventually reverse and continue on its rising path again once the bear market is over. Specific companies I have looked at are Platinum (PTM), Perpetual Trustees (PPT), and Australian Wealth Management (AUW). PTM and AUW have no debt to worry about.

Watching ASX as well. Don't see the exchange disappearing anytime soon. It really is just a question of whether the current price is attractive enough to get some.

What do you think? Any non-bank financials looking like good value at the moment?

Happy Investing,

e

*disclaimer: I own PTM shares and may in the near future own some of the other shares already mentioned

 

[Simon]

Banks are still paying a solid dividend - in cases over 10% fully franked.

A long term holder buying yield might find some value out there.

Cheers,

 

[WinstonWolfe]

And what a beating.....sucker rally and all......

hard to see earnings remaining at current levels....

Citi's analysis of Big 4 exposure seems to have been confirmed this week.

 

[Aaron Sice]

i'm making so much money naked shorting financials at the moment.

i love financials - because they suck at present.

 

[wombat]

Hi Blue,

For us un-educated types on this forum. In simple terms, how does naked shorting work?

rgs

Wombat

 

[Piston Broke]

Those funds like to invest in things like banks and other asx listed stuff.

wombat it means selling shares you dont own (on margin or on loan).

 

[Aaron Sice]

Hi Blue,

For us un-educated types on this forum. In simple terms, how does naked shorting work?

rgs

Wombat

i'm selling stock i don't have (naked position) at a higher price, and buying it back (replacing it) at a lower price.

the difference is my profit.

it's buying low and selling high - but in reverse. i can sell high and buy low.

it's classed as speculating, and to a degree i think it is, but people practically spit at you when you say you do it because it's contrarian to the norm.

 

[Aaron Sice]

that's the definition for a single trader i should mention as well.

with every primary sell order, there needs to be a secondary buy order at the other end.

naked shorting by a fund etc or publicly listed entity ON a publicly listed entity is when they place a primary sell order and there's no secondary buy order to back it up - they get profit from stock that was never there in the first place. this is a naked shorting definition for a fund or corporation and is speculating at it's best (worst?).

 

[willair]

i'm selling stock i don't have (naked position) at a higher price, and buying it back (replacing it) at a lower price.

the difference is my profit.

it's buying low and selling high - but in reverse. i can sell high and buy low.

it's classed as speculating, and to a degree i think it is, but people practically spit at you when you say you do it because it's contrarian to the norm.

They can spit as much as the want,would they care 1% if you have been wiped out in the first hour of trading today,happens every day, day in day out today will be no different,even with another 2% drop..willair..

 

[josko]

i'm selling stock i don't have (naked position) at a higher price, and buying it back (replacing it) at a lower price.

the difference is my profit.

it's buying low and selling high - but in reverse. i can sell high and buy low.

it's classed as speculating, and to a degree i think it is, but people practically spit at you when you say you do it because it's contrarian to the norm.

BC,

You're doing my head in.

Regards Jo