Market Matters Q&A

% of Portfolio Allocation Clarification

Hi James and the team,
I’m seeking some clarification on the % of portfolio allocation of a stock. Given the following scenario:
Portfolio value $100,000
Previously bought stock XXX 5% $4,500 (Portfolio value was 90k)
XXX now worth $5,500 (5.5% of Portfolio)
MM instruction is to reduce XXX to 4% from 5%
Do we sell $1,500 of XXX to make it $4,000 (4% of Portfolio value)?
Or 5% -> 4% is a 20% reduction – Sell $1,100?

Also, can you explain why you hang on to stocks like PDN (-49%) and MIN (-51.47%) when they have fallen so far?

Regards

Nick Stanley

Nick

Where to invest for exposure to data centres?

Given they’ve recently dropped in price, wondering where you would now invest for exposure to data centre ramp-up? NXT, DGT?
And does HMC still own some of DGT ? Is it in “buy” territory? Would it offer a more diversified investment?

Also, thanks for your hard work this year guys! It’s been a difficult year for investors but your commitment to subscribers in always answering questions and finding new ways to add value is obvious and appreciated.

Cheers and Merry Xmas, Nick

Nick

Outlook for Bowen Coal (BCB)

Hi MM
Wondering what chance is there for a turnaround in the fortunes of Bowen Coal BCB? Are they a basket case to be avoided or is there some hope of a recovery?
Thanks for your great service and commentary.
Regards
Rob

Rob

CRN SHARE PRICE SITUATION

Brokers seem positive on CRN. Why?

Colin

Thoughts on DigiCo (DGT) please

Hi Shawn and James
Firstly best wishes to all of you and wishing you a joyous Christmas and a happy healthy and prosperous new year
I managed to obtain a reasonable allocation on the big float which I was quite happy with but day one and the market appears not to like the stock.
I understand you cannot give personal investment advice but appreciate any thoughts you may give on the future of this stock.
Many thanks
Cheers
Mark

Mark

US Stock Market Cap

Hi MM,
It’s more a comment than a question. I saw a slide on another webinar that showed the US stock market cap is 70% of the world’s stock market cap. This is with the US having just over 4% of the world’s population.
While there are clearly some very big (tech and other) companies in the US, I found this quite astonishing.
Regards,
Peter

Peter

Environ Group (EGL) and your power to move the market

Wondering whether you know of and have a view on the small cap EGL?

Also wondering whether when you put out alerts you have already acted on them?

Presumably you have to buy or sell a very large volume of shares when you add or subtract from a portfolio which could be tricky with smaller cap shares. Then with your many subscribers acting on the alerts I imagine you could easily move the market in the direction of your trades, on the day at least? Which could be a problem, or not, and one faced by all fund managers?

Thanks for providing the opportunity to ask.

Pietro

Peter

Mesoblast Ltd (MSB)

I hold a few MSB & obviously have enjoyed a good week. With high risk, high volatility stocks like this how do you trade them? i.e do you take some money off the table or in this case, with FDA approval held, let them run. Thanks

Ian

ASX index once volume returns

Hi guys, Merry Christmas and a happy new year.
Look forward to the ongoing reports and quality views.

I’m hoping I’ve just squeezed in for the cut off the weekend.

You mentioned in todays report that 8000 looking likely for the ASX. Would you call this a fair value after the US rerating, or is this just down to the low volume Christmas period? I was in for a Santa rally, but got caught out, I wasn’t expecting such a sell off and now second guessing what range we’ll likely see once the Christmas dinner has been digested and we all slowly return to work. Do you think it would be a fair call to say that it’s been over cooked and we’ll see a decent bounce in the new year. I would’ve thought our stocks are looking appealing at the moment due to the exchange rate and with any luck some China stimulus and rate cuts.

Regards,
Simon

Simon

MOAT and Healius (HLS)

Hi James and Team
1. Can I have your view on the ETF – MOAT for a more diversified exposure to US.
2. HLS – Healius – Upon completion of the sale of Lumus imaging -do you know the form & timing of any surplus proceeds to be distributed to shareholders? Will this be a reason to continue to hold HLS or like you mentioned in your AM report today -additional funding for ” 5 stocks on your Radar ” could come from selling Healius.
regards
Debbie

Debra