Market Matters Q&A

Anyone else having trouble with Magellan Financial Management (ASX: MFG)?

Wondering how other investors are dealing with the chaotic Magellan Financial at the moment? They have merged with Barrenjoey and their website is a mess. Almost none of the links work. Of huge annoyance to me is that MGOC – a flagship fund no longer exists in that ticker, and has been almost secretly changed to V1AC, which I’m guessing refers to one of their new “partners” – Vinva Investment Management. Has anyone heard of them?
I have not experienced a mid-stream change for unknown reasons like this in 23 years of investing, and it will take me over 20 hours of reformatting 68 spreadsheets to fix it.
Has anyone else experienced difficulties with the decline in this previous giant of Australian investing?

Bill

Your thoughts on Regal Partners Ltd (ASX: RPL)

Dear team,

You have RPL in your Emerging Companies portfolio. It looks like a good buy. Many pundits seem to like it. However, I am somewhat concerned about the activity of some directors within the company who seem to be selling a lot of stock when the price is, at present, rather low. Such sales can be interpreted in a thousand ways from innocent to nefarious. How do you interpret these stock sales and has your assessment of the company changed at all?

Thank you, yet again, for your ever wise consul.

Octogenarian

Paul

Bonds

Hi Guys,

Was wanting to get a question to you for tomorrow’s edition thinking the deadline is midday, but I am in the West and for some stupid reason was overlooking the fact that we are two hours behind, hoping there might be some leeway.

I’m thinking it might be a good time to buy bonds. Not sure what you think about the old idea that the older you are the bigger percentage of your portfolio should be in bonds. I suspect that formula is now suspect.

However I’m thinking it could be good to buy some bonds in these uncertain times to lock in the higher yields on offer and then while continuing to receive said yield also benefit in time from bond prices rising if inflation comes off the boil. No doubt certain of your reports have influenced my thinking here.

You have mentioned bond ETFs and my question is can you truly lock in a yield with bond ETFs? Presumably they aren’t just buying a bond and holding it but rather buying and selling them over time and therefore the yield would follow the direction of the general bond market if you know what I mean.

Would also be grateful if you briefly elucidate how one buys bonds. Can you buy them on the ASX as you can ETFs, options etc?

Looking forward to hearing your view on this.
I appreciated your response to my last question regarding HLI, and as ever am somewhat amazed that you are able to keep on top of so much information.

Regards

Pietro

Peter

Titomic Pty Ltd (ASX: TTT) move to the US Market

I’ve been a patient holder of TTT with very little upside in the past few years. The board seems to be doing the right thing with various senior defence personnel appointed to the board in the USA and Europe. They are relocating the headquarters to the USA and are proposing shareholders will be given a 1 new share for every 25 existing shares in the new entity via a CDI. Do you think the proposed changes will impact share price in any way and do you think they have any tangible prospects of a substantial share price rerating?

Sean

Contrary views and AI chatbot.

I’m a new subscriber and see value in links to data on MM bearish views on monitored stocks. Also, an AI chatbot is required for during and outside working hours.

Matthew

Garda Property Group (ASX: GDF)

Hi guys,
In the context of a SMSF retiree in pension phase seeking consistent annual income, how do you best evaluate GDF. Currently on 8.2% forward yield with a good concentrated property book of only industrial properties and only in Brisbane area. 90% leased, annual lease rises of 3.3%, 4 yr WALE, 37% discount to NTA and that is after very recent independent valuations. No debt repayment for 3 years. Gearing under 30% and they even ‘fiddle’ with a small lending book to add a few extra bips to the annual yield going forward.
Welcome your thoughts and what areas I have missed or should keep an eye on.
Cheers
david O

David

SpaceX (Nasdaq: SPCX)

Hi James and team,

Love your special insights and consistent advice.

My question relates to SpaceX. Will passive funds have to buy shares in order to ‘hug the index’.

What is the implication when most shares are held by Elon Musk limiting the available shares in the market. Will the buying pressure send the share price to Mars? Regards Lindsay

Lindsay

SmartGroup Corp Ltd (ASX: SIQ) Outperformance

I started buying SIQ after MM bought the stock “for income” more than 6 months ago. I was influenced by the fact that management is very capable and has skin in the game but was worried that the Labor government might change the EV concessions and FBT rules. I have started selling but I’d like to know why the stock has performed so well.

John

I wonder whether you could please give your thoughts on Smart Group.

Having seen many stocks hit highs only to hold and watch them retrace (CSL comes to mind) I’m wondering whether if MM still held SIQ at the moment whether this would be a time that it would sell ? or stay on to ride the winners for more upside?

Many Thanks Don

John

Perenti Ltd (ASX: PRN)

Hi Market Matters Team
SmartGroup has risen around 40% in 2 months to a high of $12.35 today. I have held SIQ from around $7 – would you continue to hold SIQ or take profit? Do you see further upside/ and or would you continue to hold for the yield?
PRN- Perenti reached a high of $3.12 in January and has come off to around $2.10. What’s your current view on PRN – Do u see it returning to around the $3?
regards
Debbie

Debbie

Global X Space Tech ETF (ASX: MOON) and Global X S&P/ASX 200 High Dividend ETF (ASX: ZYAU)

Hi MM team, thanks for your clear communications and analysis during this unpredictable time. Could you please give your opinion on the new MOON ETF and also ZYAU (for yield)
Thanks Trish

Trish