Archives: Questions And Answers
“Message: If my memory is correct, back in October you recommended taking up the CLW offer at $2.80 and that you were proposing to do the same. On 18/11 you were “bullish CLW for yield” although 3 weeks later you were “natural at current prices”. Yesterday you offloaded CLW at circa $2.50 taking a haircut on at least the SPP offer. What happened over a three month period? Surely your radar should cover that period of time and the warning should have been out back in October.” – Colin H.
“Hi James, Can you explain the difference between the Market Matters portfolio performance and a separately Managed Account with Shaw’s? Are your Ideas the same as theirs? If the majority expect a pullback soon does that mean it’s not likely to happen? Is it possible to get a view on the big picture for markets going forward based on fundamental Economics. Does the market ignore fundamentals?” – Cheers Marvin C.
“Hi Guys, I have recently cashed out Xero shares because their current share price and business model is unsustainable. They are hardly turning a profit let alone paying dividends to shareholders. I know that they have their reasons and are pushing for further growth but what is the delay? Why aren’t small businesses using online software? How much further growth can they realistically expect? It appears that great hype comes with great expectation but the jury is still out on Xero. My investment philosophy has always been that the most valuable assets are income producing assets. We live in unprecedented times.” – Regards, Cade Z.
“Hi! James, from a solvency point I understand how to evaluate a corporation, well within reason, but how do u evaluate a hedge fund such as BBOZ from a solvency point, what I mean is the possibility of it going ‘ belly up’ What is the maximum percentage u as an investor would be prepared to hedge in BBOZ?” – Keep up the good work, Tom A.
“Hi James. Thanks for your view on WPL. I decided to take profits and sold at the high during last week. I am considering Buying QBE again as the SP is falling back towards previous lows. The Supreme Court has ruled in support of the UK Court Finding today, which increases risk and also increases the Re-Insurance Amount to be factored into the Accounts. QBE claim to have anticipated this ruling and included provisions in their Forecast. So theoretically this bad news has been factored in to the SP. Question: Does your analysis support QBE‘s claim they have mitigated the impact of this decision? As QBE’s Foreign Income from its US Bond holdings will be affected by rising Interest rates – What are your views on QBE at this time re Growth in EBIT and is it on your radar as a Buy?” – Richard O.
“Hi James. As a new member, here’s my first query. In your weekend report you made a major point about inflation killing bull markets. By ‘inflation’ I presume you mean consumer price inflation. If so, you seem to be saying that consumer price inflation causes asset price deflation – i.e. share and property prices. This would imply that people would rather have more AUDs that are currently being printed at about $5B per week, than hard assets. I would also appreciate your present thoughts on CSL, because Bell Potter thinks it could fall below $200. I’m thinking of selling, in spite of recent falls.” – Regards Stuart C.
“Hi MM Team, with inflation in mind what is your preferred ETF. I’m thinking either bnks or ixi? Or is there another option you would recommend.” – thanks for your time, Paul A.
“Hi MM, Thank you for the very good Sunday update. Have a few questions as follows; GWA – has had a good run. Is it time to take profits or ok to sit in this one and use for dividends? IEU – has gone nowhere. Time to get out or stick with it? SPT & EML – Thoughts?” – Cheers, Jill C.
“Hi again James and Team.
“Hi James, with the falling USD, many commentators suggest investing in emerging markets during 2021. Which specific emerging markets do you recommend, and how does a rising AUD affect this choice?” – best wishes John K.
