# Sectors you have decided to invest in and why



## skating101 (13 January 2010)

What sectors have you guys decided to invest in and why, im interested to know as I plan to invest in major players in a variety of sectors based upon my own research and peoples advise.


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## ROE (13 January 2010)

No sector in particular, whatever I find reasonable value and trades at a discount and the down side is covered or limited.

Some trades at high PE but if I'm comfortable with the business model and I can make a calculated guess what's going to be in 5-10 years I still load it up.


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## Dowdy (13 January 2010)

A sector i'm looking at is anything to do with electric cars.

Mainly battery technology and i'm trying to find a company that mines Lithium but i can't find any.

Are there any listed? - in any stock exchange country


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## Smurf1976 (13 January 2010)

Energy. 

1 - It's something I understand very well.

2 - The fundamentals are rising consumption and increasing constraints on production by conventional means due to various factors geological and political.


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## awg (13 January 2010)

Dowdy said:


> A sector i'm looking at is anything to do with electric cars.
> 
> Mainly battery technology and i'm trying to find a company that mines Lithium but i can't find any.
> 
> Are there any listed? - in any stock exchange country





GXY and ORE.  plus one other I think

I hold GXY

In relation to other sectors I am overweight in the gas sector, is ripe for consolidation plus increasing energy needs. 

Fairly speculative though as there is still much conjecture on the ultimate profit margins, and especially proving up reserves.

So you need to be a bit fortunate on which ones you pick.


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## Purple XS2 (13 January 2010)

skating101 said:


> What sectors have you guys decided to invest in and why, im interested to know as I plan to invest in major players in a variety of sectors based upon my own research and peoples advise.




Not real keen on major players myself, but I have a yen for biotech. (The elephant in this room is CSL, if you like elephants, also Cochlear - COH).

Biotech was starved of funds as a casualty of the Great Simianogenic Financial Crisis, as well as a flight from risk by investors.

Some of the more interesting speccies are therefore greatly undervalued, IMO.

My great hope is Avexa - AVX, also looking at Virax - VHL, Avita - AVH. Back in the days when BPH pretended to be a biotech company, I signed up for a spin-off called Cortical Dynamics. (still waiting for listing - the BPH principals decided life was more fun in resources). 
(As was said of Alan Bond when he attempted to get into resources, "he's better at mining investors than mining the ground ...").

Used to own Select Vaccines - SLT. It's been a sick puppy for ages, but I noticed it's shown a flicker of life today. 

Ultimately, my rationale is that I can justify (dreaming of) making money from health research more easily than I can from digging up holes in the ground as if there's no tomorrow.

I can also justify investing in the Australian armaments industry (Metal Storm - MST, also looking at Electro Optic - EOS), because when it comes to health the best defence is attack ..... err, hmm ....  :

Regards,
P.


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## eddyeagle (13 January 2010)

For 2010 and beyond, I like energy (oil, gas, LNG), precious metals (gold, silver, platinum) and I am looking at having a punt on smart phone technology / IT stocks in the US, as I reckon this will be a massive growth market in the next 5 years.


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## Dowdy (14 January 2010)

Purple XS2 said:


> Not real keen on major players myself, but I have a yen for biotech. (The elephant in this room is CSL, if you like elephants, also Cochlear - COH).
> 
> Biotech was starved of funds as a casualty of the Great Simianogenic Financial Crisis, as well as a flight from risk by investors.
> 
> ...




I tend to stay away from spec health stocks. They have to raise massive amounts of money (800mil-1B) to get their product tested, tested and tested again, then marketing and make sure the average person can afford it. The testing stage can take close to a decade to pass all the requirements too.

I like the health stock that own the private hospitals since our waiting system is so bad people will pay extra to get the care they need

I like the Metal Storm technology and been watching them for ages but their financials aren't the best. Although i've noticed that as soon as a story of them appears in the Herald Sun business section their stock nearly doubles.


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## ROE (14 January 2010)

Dowdy said:


> A sector i'm looking at is anything to do with electric cars.
> 
> Mainly battery technology and i'm trying to find a company that mines Lithium but i can't find any.
> 
> Are there any listed? - in any stock exchange country




A Whole list here
http://www.australian-lithium.com/lithium-stocks.html

I'm not into speculative stocks so I usally dont invest in these stocks having said that there are sector that I never invest in doesnt matter who they are  Airline come to the fore front 

never own qantas or virgin or anything to do with airline and never will 

It failed the test on so many levels it's scary..


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## Julia (14 January 2010)

ROE said:


> I'm not into speculative stocks so I usally dont invest in these stocks having said that there are sector that I never invest in doesnt matter who they are  Airline come to the fore front
> 
> never own qantas or virgin or anything to do with airline and never will
> 
> It failed the test on so many levels it's scary..



Same here, ROE.  Totally in my "don't touch them" zone.


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## Smurf1976 (14 January 2010)

ROE said:


> never own qantas or virgin or anything to do with airline and never will
> 
> It failed the test on so many levels it's scary..



I don't remember who it was, but I did hear someone on radio who seemed to be quite knowledgeable on such matters saying that the global civil aviation industry has, all airlines collectively, made a loss since its inception.

So the odds would seem to be against making a profit, any profit, in the airline business. 

Thinking locally, Ansett went broke, so did Compass (twice). Government got out of the business too.


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## awg (14 January 2010)

Smurf1976 said:


> I don't remember who it was, but I did hear someone on radio who seemed to be quite knowledgeable on such matters saying that the global civil aviation industry has, all airlines collectively, made a loss since its inception.
> 
> So the odds would seem to be against making a profit, any profit, in the airline business.
> 
> Thinking locally, Ansett went broke, so did Compass (twice). Government got out of the business too.





Graham and Buffet dont like them, thats good enough for me

Apart from anything else, if they are unfortunate enough to have an accident the SP would drop.


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## It's Snake Pliskin (15 January 2010)

Smurf1976 said:


> Energy.
> 
> 1 - It's something I understand very well.
> 
> 2 - The fundamentals are rising consumption and increasing constraints on production by conventional means due to various factors geological and political.



Smurph, what effect will inflation have on the businesses and the demand as you understand it?


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