High Yielding Shares Again

[pinkboy]

My WOW and BHP had dropped about 20% in recent times now back to 7% drop. Is it time I got out?

I would hold out. It's Interim reporting month and we are seeing a good run up on most blue chips (exception being IAG yesterday, I'll tell my tale in a moment).

BHP's divided is in $USD, and if it holds at $0.62c, we will see about AUD 80.5c which should push the price up, and even if it doesn't quite get you back to break even, will ease the pain s bit.

My BHP holding is now above 20% in the green!

I can't comment on WOW, it's in one of my watch lists, but never purchased.

pinkboy

 

[pinkboy]

Yesterday I purchased 3x parcels of IAG in 3x different entities.

@ $5.98
@ $5.87
@ $5.80

I worked out my overall holding (including earlier purchases last year) @ $5.88. Depending on the Final divided later this year, at this price will yield 6.46% or 9.23% grossed up using $0.38c as annual dividend.

pinkboy

 

[topcropper]

It's been a good run. My Ramsey health and sirtex are now 13 baggers!


See ya's.

 

[eyespy]

I also got some iag shares yesterday at 5.905.

Top cropper......interested how u came to pick Rhc and sirtex originally. I find these type of shares hard to know when u can buy Bc they rarely drop in price.....so always scared I'm getting in at a high.

So did u pick them Bc of certain indicators like p/e or just general belief in their type of business ?

 

[topcropper]

I also got some iag shares yesterday at 5.905.

Top cropper......interested how u came to pick Rhc and sirtex originally. I find these type of shares hard to know when u can buy Bc they rarely drop in price.....so always scared I'm getting in at a high.

?

http://somersoft.com/forums/showthread.php?t=95940


Mostly good luck though. Bought RHC after the birth of my third girl when I was impressed with the ramsey hospital, and SRX when I was following a fund managers buys.


See ya's.




ps. Anyone who takes free advice about shares from a farmer, on a property forum deserves to lose all their money.
I'm also obviously just ramping this stock hoping to offload to some suckers.

 

[topcropper]

So did u pick them Bc of certain indicators like p/e or just general belief in their type of business ?

Definitely nothing to do with PE. RHC has always had a high PE and when I bought SRX at $2.68 it had no earnings.


See ya's.




ps. Anyone who takes free advice about shares from a farmer, on a property forum deserves to lose all their money.
I'm also obviously just ramping this stock hoping to offload to some suckers.

 

[eyespy]

Thanks top cropper for the explanation.

I was thinking of buying healthscope ......I had a few pathology tests done with them last yr and impressed with them. Anyone got any opinions on them ?
We bought some apple shares a few yrs back Bc we buy so much apple products, bought at a high but after share split and currency movements, it's been a great share to hold. Have thought of buying Netflix too since we use and love it, wished we had bought 2 yrs ago when we first started using it.

 

[topcropper]

We bought some apple shares a few yrs back Bc we buy so much apple products, bought at a high but after share split and currency movements, it's been a great share to hold. .

Anyone remember the movie 'Forest Gump'? Remember Forest had bought shares in apple, he thought some sort of orchard? So apple were already thought of as a good investment in 1994 to have used that story in the movie? Seems that if Forest still had his apple shares they'd have increased by 76 times since 1994!

http://www.cultofmac.com/179044/forrest-gumps-investment-in-apple-would-be-worth-7-billion-today/


See ya's.

 

[Intrigued again]

My WOW and BHP had dropped about 20% in recent times now back to 7% drop. Is it time I got out?

China

They don't do much for me, but it would good to hear why you bought them.

I would not buy commodities stocks generally unless all the stars align, have a look at the Crude oil and Iron ore 30year charts and see where the average price is.

WOW I think Masters is a ring around there necks, and just a visit between Masters and Bunning is quite a shock, well around where I live anyway.

 

[seismic]

Yeah sure
ASX
CBA
CCL
CSL
COH
LDW (Gone)
MQG
WBC
WES

I?m not interested in changing your mind, it works well for us.

Be right sit tight

Thanks for that. I thought may be you know something which I missed totally.
I hold CBA,WOW, CSL,WBC, MQG, WES, plus few others since late 2011.

I have invested in shares for a very long time and spent a lot of time and energy, however still my investments and profits in shares are a small fraction of my property portfolio.

I personally cannot sit tight when shares are falling - hence the stop loss. MQG fell from $95 to $15 during 2007-09. After 6 years MQG still is nowhere near its previous high. As I see it, if I can take a 20% loss which is tax deductable I could then buy 5 times the shares in such an extreme situation. MQG fell from $40 to $20 in 2001 and then took 3 years to reach $40. If a top 50 share is falling 20% then there is something seriously wrong.

Stop loss protection plan also helps me in making higher profits from more volatile stocks.

If I can practice this with discipline then I can invest with borrowed funds.

 

[seismic]

Top 15 stocks by market cap june 1980

bhp
conzinc riotinto of australia
mim holdings
csr
wmc
woodside
comalco
hamersley holdings
bougainville copper
santos
bank of nsw
anz
howard smith
ez industries
southern pacific petroleum

 

[The Falcon]

I'm not sure I follow the point you are trying to make with that list. First level thinking is "oh heaps of those names are nowhere these days" second level is to consider what happened to those business...I don't have the time to pull each apart tonight, but the first two to catch my eye were Hammersly and EZ (names I didn't know) and a bit of digging shows both were subsequently rolled up into Rio.

It would be interesting to follow the fortunes of a shareholder holding $1k in each of those businesses, particularly the ones delisted through acquisition (like the 2 cited) then following those holdings converted into stocks of the acquiring entity and all the stock splits over time (be careful of this when looking at historical share price !) with dividends reinvested. I think the results would be surprising. I've seen this done with the "nifty fifty" and it's a very interesting story indeed, and really shows the power of blue chip buy and hold over time. I'll see if I can dig something up on this.

As an aside a current example that people may look back on in years to come, TOL...it just disapeared !!! Yeah, after the holders got a 50% premium thanks very much

 

[topcropper]

It would be interesting to follow the fortunes of a shareholder holding $1k in each of those businesses, particularly the ones delisted through acquisition (like the 2 cited) then following those holdings converted into stocks of the acquiring entity and all the stock splits over time (be careful of this when looking at historical share price !) with dividends reinvested. I think the results would be surprising. I've seen this done with the "nifty fifty" and it's a very interesting story indeed, and really shows the power of blue chip buy and hold over time. I'll see if I can dig something up on this.

Yep, I'd reckon it would be pretty impressive.


See ya's.

 

[Intrigued again]

It would be interesting to follow the fortunes of a shareholder holding $1k in each of those businesses, particularly the ones delisted through acquisition (like the 2 cited) then following those holdings converted into stocks of the acquiring entity and all the stock splits over time (be careful of this when looking at historical share price !) with dividends reinvested. I think the results would be surprising. I've seen this done with the "nifty fifty" and it's a very interesting story indeed, and really shows the power of blue chip buy and hold over time. I'll see if I can dig something up on this.

An example LDW Ludowici's a great company that had trouble with a new factory in 2008 or 9 the prior 10 years to this earning growth was 25.88% pa on average, they sunk to around the $1 or $1.2 from memory it was hard buying because they were so thinly traded. I had many arguments it took weeks to buy them, but most would assume they just disappeared from the list. We received $11.00 a share and had no option but to sell.

 

[Intrigued again]

Thanks for that. I thought may be you know something which I missed totally.
I hold CBA,WOW, CSL,WBC, MQG, WES, plus few others since late 2011.

I have invested in shares for a very long time and spent a lot of time and energy, however still my investments and profits in shares are a small fraction of my property portfolio.

I personally cannot sit tight when shares are falling - hence the stop loss. MQG fell from $95 to $15 during 2007-09. After 6 years MQG still is nowhere near its previous high. As I see it, if I can take a 20% loss which is tax deductable I could then buy 5 times the shares in such an extreme situation. MQG fell from $40 to $20 in 2001 and then took 3 years to reach $40. If a top 50 share is falling 20% then there is something seriously wrong.

Stop loss protection plan also helps me in making higher profits from more volatile stocks.

If I can practice this with discipline then I can invest with borrowed funds.

We have held CBA since 91, and never held another company for approximately 16 years, we paid $7.56 per share they went down to around $5.80 and never came back till mid-1993. They fell again in 1995 so you can only imagine if we could have bought more then. They?ll deposit another cheque on 2/4/15.
We use options usually, but can?t say we have it down pat we certainly haven?t caught very drop but it?s always been (was) about increasing the shareholding. We still to today use short puts to buy in till we are exercised.
We never used leverage and probably never will, but full understand what you are saying, but still haven?t been able to pick the ups or downs perfectly, but usually can get a bit of it. Must say the GFC was a great opportunity for us.

Stop practising the discipline and just do it, good luck

 

[The Falcon]

Ok, here's the numbers on "do not hold a top 20 stock if it falls 20%". In this case, stop is placed at 20% drop from all time high. Let's look at the widely held WOW, a recent and topical example.

High 38.92
Stop 31.13

This stock subsequently fell to $29, so maybe the stop protected capital...let's see.

Stock was acquired in 2011-12 at $25. Stop has now triggered CGT on $6.13, say 47% for top bracket and applied 50% CGT discount this leaves capital per share of $29.70, and now on the sidelines.

Meanwhile, if you had done nothing, current share price $33 and another dividend to be paid in April. I'll pass on this method of "capital protection" for long term investing. The key is picking the stocks of course, for spec stocks yeah, I'd want a stop...but I don't buy specs.

 

[The Falcon]

On the nifty fifty http://theconservativeincomeinvestor.com/2015/01/26/the-nifty-fifty-forty-three-years-later/

I am actually going to build something around that 1980 ASX list out of interest. It may take a lot of detective work so will take quite a while.

 

[equitymate]

bhp
conzinc riotinto of australia
mim holdings
csr
wmc
woodside
comalco
hamersley holdings
bougainville copper
santos
bank of nsw
anz
howard smith
ez industries
southern pacific petroleum

Interesting list I would bet most were bought out, from memory MIM was taken over, WMC was demerged the other half become AWC with the WMC component taken over, WES bought out Howard Smith(BBC Hardware) in the 90s, Bank of NSW is known as Westpac these days.

 

[random]

Pretty surprising , well to me anyways , how the market is actually going right now , what about you guys ?
l mean it's not like the economy is too flash . l expected it to bounce quite well after the 5150 or whatever it was until Christmas'ish but not to go on like this this year.

Anyway , bought fmg just before Christmas as a quick trade , so much for that one. Still holding now but pretty low. Just did some reading up , hmmm
This year was always gonna be a worry for miners l reckon but l did expect one last jab first pre Christmas l must admit. So much for that to.

So where do you guys reckon our mining industries in general is heading for the next few years from here .
l just read annalists expect iron ore to drop to 50 bucks a ton , that's nasty !
Hard to see a way outa that one anytime soon don't you think !

 

[seismic]

Top 15 stocks by market cap june 1990

bhp
cra
btr nylex
nab
wbc
elders ixl
anz
coles myer
fletcher challenge
news corp
csr
western mining
pacific dunlop
mim holdings
brambles