Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi Team, Is buying SGR below $1.00 akin to catching a falling knife? If so, at what price are the risks fully priced? How does SelfWealth make a profit when charging a flat brokerage of $9.50 regardless of the trade size? Is it just as safe to trade with this discount broker as with other brokers when advice is not required? Thanks & regards, Sidney
Hi Sidney.
Star Entertainment (SGR) – what timing with the stock trading up ~20% after securing a tax reprieve from the NSW government. Previously we we had been targeting a 90c – $1.20 trading range through 2H hence now we’re knocking on the upper end its not one for MM, was a great play for the punters earlier in the week.
SelfWealth (SWF) – their stock has fallen from over -80% over the last couple of years because of the issue you highlighted – that being, they don’t make a profit. However I would suggest they are looking to build a large customer base from this extremely cheap execution price to then sell other financial products/services to in the future i.e. backloading profitability. In terms of holding stock, from what we understand, stock is held on HIN which is important, unlike Superhero. That said, I had a client try to move stock away for SWF and it was a challenge and took a lot longer than it should.
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