AFF Member Stock Discussion

[cove]

Well last week was a beauty but with so many shares going up has made it a bit more difficult to find undervalued winners.
We passed on US REITS for the moment as Covid-19 is out of control in the US.

 

[Buzzard]

I got into TWE last week having confidence in the business.

 

[cove]

We looked at Vicinity as Melbourne will have some shoppers this next few weeks.
I stopped buying Penfolds 707 when the price went thru the roof.

 

[moa999]

Might be some returns from China in the next few months.

With our China issues and Covid impacts the market level astounds me.

 

[cove]

So more wine and crayfish for us.....
We think Perth real estate is taking off....
Cash has become pretty useless unless you don’t have any.
We have quite a few stocks that pay 6% dividends on our entry price and that is sounding pretty good today.

 

[burmans]

Might be some returns from China in the next few months.

With our China issues and Covid impacts the market level astounds me.

Tend to agree but the general attitude seems to be you need to put your money somewhere. And despite all prior rumours the market seems to believe Budens win (and to be fair the Republicans keeping control of the Senate) will be good for the world economy.

 

[cove]

We missed Vicinity this morning as they opened strongly.
Both OZG and WIC which are Euroz Hartleys funds are buying back their stocks as they are assets at a discount.
LSF is doing the same.
We hold all three of these.
Bellevue Gold jumped nicely today as did most of the unhedged gold miners. We bought some more OKU which has sovereign risk.

 

[cove]

The drop in gold price will change the prices of gold shares this morning.

 

[cove]

We did get to sell a parcel of SYD which is Sydney Airport when they popped yesterday.Missed the absolute high for the day but it was quite turbulent in the morning trade.
Thinking about getting more WAF which is West African seeing the gold price is going back up tonight.

 

[Buzzard]

Another opportunity may arise but based on today's close what have you missed out on?
For me it's BEN, ORG and topping up on CBA.

 

[cove]

@Buzzard we sold quite a few SYD and CGF seeing they jumped a lot. We won’t miss either provided we don’t look back. It is really nice to bag some profit and still have some.
We missed Vicinity and we did get more big 4 banks while they were cheap. Still out of the money on Westpac.
We have lots of Aspen which is APZ where we took up a placement at $1 less the distribution of about 3 cents.

 

[Dr Ralph]

I'm thinking of getting some more TLS.

Sell! Up 5% today.

 

[RooFlyer]

[Telstra] Sell! Up 5% today.

Did you see why?

Telstra unveils major split ahead of NBN sell-off

Telstra has announced a significant restructure that will split it into three separate legal entities.

Ahead of the telco’s investor day on Thursday, chief executive Andy Penn said the shake-up would allow Telstra to better monetise infrastructure opportunities, particularly given the increased value in 5G and fixed line telecommunication assets.

 

[Mr_Orange]

Sell the news then but don't buy it.

 

[Buzzard]

Sell! Up 5% today.

Too soon to sell for me.

 

[Dr Ralph]

Too soon to sell for me.

I got on for $2.77 about a month ago. I'm happy to take the 10% profit today.

 

[Buzzard]

I got on for $2.77 about a month ago. I'm happy to take the 10% profit today.

Dollar cost average I'm at $3.02 so hanging on for a while.

 

[cove]

Had a call with Secos which is SES. They have a biodegradeable bag material and they are growing nicely with sales to retail names that you would recognise. Their half yearly should show a growing gross profit and they believe they have enough capital to really get the business going. A bit too early to know if this will be a big winner but we have bought a bit on top of the placement. Small capital businesses can be very large winners but way riskier than a Telstra or Bendigo.

 

[moa999]

Re SES.
Nice growth but off a very low base.
MCap $100m, and $15m cash from the recent raise.

Revenue only $7-8m, and the Gross Margins are currently tiny, and it's burning $1m a month

One of those businesses that possibly came to market a little too early.
But as you say it could pop as well.

 

[cove]

Yes @moa999 SES are moving to get their gross margin up closer to 20% later this year. Take out the current cash and the business is at around $80 million net value.
Last year the gross margin was tiny so that’s why we talk to companies like this as they could successfully run out of money before getting to break even. Time will tell if their patents and products are winners.