AFF Member Stock Discussion

I halved our work portfolio of Westpac and CBA a couple of weeks ago ahead of the latest reporting period. The Westpac result was pretty ordinary and there is a small buying opportunity to get $30,000 from the share purchase plan they announced yesterday. It may be possible to buy Westpac below that share purchase price in the next month.
Meanwhile a family member flew in from Europe and bought a home in the PERTH suburb of Scarborough that has ocean views. It is a 3 bedroom 2 bathroom unit that sold about $165,000 less than 5 years ago. At $530,000 cash purchase price it was a pretty good deal compared with say anything in Sydney or Melbourne at the moment. There is still a big overhang of properties to get sold In WA but in Karratha the prices have surged ahead of the increased mining and oil and gas activity coming in 2020 and 2021.
 
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Good thread, this has informed some of my recent research.

I'm about to buy a portfolio of ETFs accross Australian, international, emerging and bond markets. My intention is to hold them for 10-15 years. I'm towards the 'growth' end of the risk spectrum.

My plan is to allocate 45% to VGS but wondering if i should consider the hedged version (VGAD), or even a split between the two. My concern is the low AUD at the moment - lower that the long term average.

Whilst not a "when is the best time to buy shares" question (I am happy to commit and ride the Index for better or worse over time) I am interested in your thoughts regarding the current climate for international shares and their hedged counterparts with respect to the AUD.

Thanks.
 
cove said:
The Westpac result was pretty ordinary and there is a small buying opportunity to get $30,000 from the share purchase plan they announced yesterday. It may be possible to buy Westpac below that share purchase price in the next month.
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Have I read it correctly that if you purchase as part of the offer you either get shares at $25.32 (the price the institutional investors paid) or at a discount of 2% to a 5-day period just prior to the offer closing, which could be lower than what the institutional investors paid? Could be quite lucrative.

I note that STX also had a similar offer, but it was only offering shares at a fixed price, and since then the price actually dropped below that price. Sure, there's no brokerage but it probably wouldn't take much to capitalise.
 
samh004 said:
Have I read it correctly that if you purchase as part of the offer you either get shares at $25.32 (the price the institutional investors paid) or at a discount of 2% to a 5-day period just prior to the offer closing, which could be lower than what the institutional investors paid? Could be quite lucrative.

I note that STX also had a similar offer, but it was only offering shares at a fixed price, and since then the price actually dropped below that price. Sure, there's no brokerage but it probably wouldn't take much to capitalise.
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It's five trading days, rather than '5-day period', but I assume you understood that.

Otherwise, this is exactly how I read the SPP offer for Westpac. It's definitely the lesser of those two scenarios.

I have 5 different accounts, so planning on taking up 5 x $30,000.
 
Dr Ralph said:
It's five trading days, rather than '5-day period', but I assume you understood that.

Otherwise, this is exactly how I read the SPP offer for Westpac. It's definitely the lesser of those two scenarios.

I have 5 different accounts, so planning on taking up 5 x $30,000.
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Yes, was just feeling a little simple when I wrote it and didn't want to find the booklet they made me download to get the exact wording (VWAP and all that). That said, I do recall it mentioned that it doesn't matter if you administer several accounts, each individual person is only entitled to one lot of up to $30,000. So in your case if they manage to match your details between registries I think they might object to you taking up a $150,000 position on the offer ;)
 
eJamie said:
Good thread, this has informed some of my recent research.

I'm about to buy a portfolio of ETFs accross Australian, international, emerging and bond markets. My intention is to hold them for 10-15 years. I'm towards the 'growth' end of the risk spectrum.

My plan is to allocate 45% to VGS but wondering if i should consider the hedged version (VGAD), or even a split between the two. My concern is the low AUD at the moment - lower that the long term average.

Whilst not a "when is the best time to buy shares" question (I am happy to commit and ride the Index for better or worse over time) I am interested in your thoughts regarding the current climate for international shares and their hedged counterparts with respect to the AUD.

Thanks.
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My preference would be VGAD but each to their own. You may want to read this:
 
samh004 said:
Yes, was just feeling a little simple when I wrote it and didn't want to find the booklet they made me download to get the exact wording (VWAP and all that). That said, I do recall it mentioned that it doesn't matter if you administer several accounts, each individual person is only entitled to one lot of up to $30,000. So in your case if they manage to match your details between registries I think they might object to you taking up a $150,000 position on the offer ;)
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This rule is never enforced from what I've seen.

In any case I wouldn't be concerned as I've set things up so as not to be captured by such limitations.
 
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With Westpac you will get one approved entitlement per name regardless of getting multiple offers to one name. In our family we have 6 eligible holders out of ten parcels of shares and there is always a chance Westpac may refund a portion if they get swamped with subscribers.
 
Buzzard said:
It could be a busy day for me when I get home tomorrow. 3 of my holdings are at or above my sell price:
WOW, CCL & ORG
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For WOW don't forget about the planned sell off/separation of liquor businesses. May we worthwhile holding on to at least some of your shares.
 
I find I have wins and losses as I tend to be in the smaller cap stocks that are showing promise.
Looks like Westpac share issue is now non urgent with the share price tanking below the price the institutions paid.
I have Atlas Arteria and Consolidated Operations both wanting money with issues.
I did buy some Newchev ahead of their listing as well as Micro X both of which are at the starting gate so would be needing good management to become valuable.
 
Westpac have cut all their senior executives bonuses so I plan to wait to see how the market handles all the information. I have no idea where the Westpac share price will be at the end of this trading week and I will be in Los Angeles working.
 
I've got a few $s in some of smaller speccies.
Ones I've made money on
TPW Temple & Webster online furniture
CUV Clinuvel biotech for skin issues (previously known as Epitan)
BIS Bisalloy Specialised steel

Yet to perform
FRX Flexiroam Global roaming Telco that I've used and recommended here
MX1 Micro-X Same as cove. Not happy about their recent selective discounted placement.

Sadly missed out on the pay later darlings APT and Z1P despite knowing people working at both.

I'm generally thinking the global markets are crazy high given ongoing Brexit, US-China issues and low inflation, and thinking about shifting some money in index funds to cash
 
I sold AfterPay and Clinuvel so they may keep going up. I will let OPHIR fund guys play on with those two as I am about to travel.
I bought those MX1 from that recent discounted placement because it was offered.
With Consolidated Operations I applied for more at 9 cents because their merger should work out..They plan to be a dividend payer next year.
 
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Dr Ralph said:
BOQ announce capital raising:

www.news.com.au

BoQ announces $275m capital raising

Bank of Queensland plans to raise $275 million to build a buffer above APRA's new equity benchmarks and to give the lender room to plot its growth.
www.news.com.au www.news.com.au
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Would have been attractive to me had I any spare cash. Unsure if I should sell down any companies that aren't losing for me simply to increase my exposure to financials, which haven't been doing great :p only benefit I can see is that the share price is likely to tank for a while on account of this offer and this would lower my average buy price. I think I'd be happier if BEN and BOQ just merged!

Shame about WBC recently. Of note, the 5-day VWAP period for the SPP is between Tuesday (tomorrow) and next Monday, and at its current level it's certainly a discount to what the institutional investors paid, but will probably sink lower over the next year due to their screw ups.
 
samh004 said:
Would have been attractive to me had I any spare cash. Unsure if I should sell down any companies that aren't losing for me simply to increase my exposure to financials, which haven't been doing great :p only benefit I can see is that the share price is likely to tank for a while on account of this offer and this would lower my average buy price. I think I'd be happier if BEN and BOQ just merged!
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Looks like the shares will be issued at a significant discount. Certainly more attractive than the current Westpac offer.
 
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