# So what's worth buying?



## Pager (31 January 2008)

With the carnage in some stocks, what are ASF forum members buying ?.

Not talking about trading stocks but what are you buying with a view to hold.

The past week ive bought BTT at $3-45 and today WBC at $24-75 and ROC at $2, All 3 i already hold so just topping up my positions, others im looking at are WES and ZFX both with a long term view.


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## Joe Blow (31 January 2008)

*Re: So whats worth buying?*

If this thread becomes a ramping thread it will be closed.

If you are going to nominate a stock, give reasons. 

I am really not fond of these types of threads, so this one will be watched very carefully.


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## TheRage (31 January 2008)

*Re: So whats worth buying?*

Agree about WBC. I have also been eyeing off ANZ carefully. Best priced banks at the moment. If only interest rates would go down so my portfolio was a little more Positively geared.


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## Nyden (31 January 2008)

No one can tell *you* what is worth / not worth buying.

Just research, look for good fundamentals, good earnings estimates, & set yourself a time frame. 

Quite frankly, in this market - no one *can* really know what is!

What am I buying? Nothing. I'm all cash at the moment, why not? The average investor makes 10-15% a year, at risk. At the moment you can make 8% with 0 risk ... 

Missed gains are easier to deal with than losses! Believe me  :


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## ROE (31 January 2008)

Nyden said:


> No one can tell *you* what is worth / not worth buying.
> 
> Just research, look for good fundamentals, good earnings estimates, & set yourself a time frame.
> 
> ...




No way you can get 8% with zero risk.. the only think that comes close to zero risk is government bond and that doesnt pay you 8% .

If any bank that pay you 8%, it's not risk free, your deposit in the bank could disappear, there is no guaranty on bank deposit.


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## Nyden (31 January 2008)

ROE said:


> No way you can get 8% with zero risk.. the only think that comes to zero risk is government bond and that doesnt pay you 8% .
> 
> If any bank that pay you 8%, it's not risk free, your deposit in the bank could disappear, there is no guaranty on bank deposit.




I trust this post is sarcastic? :

Bankwest does 8%, ING offer 7.5 on a term deposit ...
They're called Interest Rates : & they're only set to go higher!

I look forward to 15%, what with labor in power :


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## ROE (31 January 2008)

Nyden said:


> I trust this post is sarcastic? :
> 
> Bankwest does 8%, ING offer 7.5 on a term deposit ...
> They're called Interest Rates : & they're only set to go higher!
> ...




No I am not,  bank deposit is not *Zero risk* ... they are commercial institution and they dont guaranty your deposit.
The chance of bank run away with your money is low but it's not zero risk..

that why when people use zero risk they use government bond figure not bank deposit.
People dont buy low paying interest government bond for nothing, because they carry no risk.
why do you see a difference in bond and bank deposit rate? because bank deposit carry risk


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## Nyden (31 January 2008)

ROE said:


> No I am not,  bank deposit is not *Zero risk* ... they are commercial institution and they dont guaranty your deposit.
> The chance of bank run away with your money is low but it's not zero risk..
> 
> that why when people use zero risk they use government bond figure not bank deposit.




Sigh, alright - 99.9% risk free :

By that logic, everyone should go & withdraw their money, & stick it under the mattress

& Let me tell you, if a major Aus bank went down ... heh, you think our markets would be safer? : Half of them have money with em', they'd all be bankrupt.


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## explod (31 January 2008)

Nyden said:


> I trust this post is sarcastic? :
> 
> Bankwest does 8%, ING offer 7.5 on a term deposit ...
> They're called Interest Rates : & they're only set to go higher!
> ...




Yep that's fairly sarcastic.   "...what with labor in power".  One we move on from the past and two, interest rates are determined by matters well outside the ant hole size of Australia.   The banks are linked world wide and are privately owned.  They also manipulate cash rates to influence politics to, inturn ensue they can get away with robbing the people.


Prolly worth nuthin.


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## ROE (31 January 2008)

Nyden said:


> Sigh, alright - 99.9% risk free :
> 
> By that logic, everyone should go & withdraw their money, & stick it under the mattress
> 
> & Let me tell you, if a major Aus bank went down ... heh, you think our markets would be safer? : Half of them have money with em', they'd all be bankrupt.




Well I just want to correct that it's not zero risk and they are heap of banks that went under around the world including the big USA and people losing their saving and deposit..a google search will yield you many of those case.

and the state of the market who know what will happen if a bank or two went down, that all speculative but for a bank to go down and you got unsecure deposit you will be in line like everyone else to collect what salvage they can make out of the bank. 
and by logic if you want risk free you get government bonds dont have to stick money under mattress


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## CamKawa (31 January 2008)

Pager said:


> With the carnage in some stocks, what are ASF forum members buying ?.
> 
> Not talking about trading stocks but what are you buying with a view to hold.
> 
> The past week ive bought BTT at $3-45 and today WBC at $24-75 and ROC at $2, All 3 i already hold so just topping up my positions, others im looking at are WES and ZFX both with a long term view.



I wouldn't be buying shares at the moment. What looks cheap this week could look very expensive next week. If you must buy shares buy gold, forget the rest. There's a lot to be said for 100% cash at the moment.


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## cordelia (31 January 2008)

I sold all my blue chips. Took a loss but could have lost a lot more. It was hard at the time but now I am glad. I put the cash into my mortgage. At 8.25% it is a good low risk place to put it until this market settles down.

If Bankwest fall over then our economy is in serious trouble and at least I will have virtually no mortgage. Besides  In order to make an 8,25% gain on the sharemarket I would have to take into consideration CGT. The risk is not worth the returns at the moment. I can draw down on it if I wish and I sleep easy at night. I daytrade one share on volume and range.......works for me and is less stressful. I don't care what the market does overnight...everyday's a new day......


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## Pager (31 January 2008)

cordelia said:


> If Bankwest fall over then our economy is in serious trouble and at least I will have virtually no mortgage.




Why do you say this ????, unless ive missed something since when has Bankwest been in trouble


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## Temjin (31 January 2008)

Hmm..Precious metals ETF? Agriculture ETCs? Gold stocks ETF like GDX? 

That's what I am thinking or have already owned.  

All for holding purposes anyway.

Edit: Ok, ignore this post. This is an ASX stock thread, can't buy them through ASX stock exchange anyway. Soz.


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## cordelia (31 January 2008)

Pager said:


> Why do you say this ????, unless ive missed something since when has Bankwest been in trouble




if you read some of the earlier posts...it will explain. I dont believe Bankwest will fall over


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## tronic72 (31 January 2008)

I sold prior to the mid January Crash (see me post regarding jumping ship when I and many others were referred to as lemmings). I've recently purchased AFG, BNB, MQG, ZFX, AQD, SDL and Centro.

I did really well with my AFG purchases at 1.85 current dividend is .77 and yearly high was nearly $14 the share was over $6 mid Jan 08. I'm looking at buying more AFG as I suspect their price will climb when their figures come out in Mid Feb.

I think their figures will also boost stocks like MQG & BNB because the market will see how little effect the sub prime issues have effected them (well that's the plan).

Also looking very hard at Boom Logistics. Their current SP is nearly $1 down from a high of nearly $5!!!!!! Current divident is 11c so that's a 11 perent return assuming the share stands still for the the rest of the year which I suspect it won't.

Edit: Pretty much anything that has been falling for a long time. Never see the point in buying near the peak no matter what the share is.


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## ormond (31 January 2008)

Sold some oil specs today and plowed the lot into WOR-Worley parsons.Long way of highs and revenue forcasted to double by 2010-time will tell.
Also coal and platinum look strong at the moment.


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## wayneL (31 January 2008)

A years supply of food and a .357 magnum?



 (Just joking)


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## vishalt (31 January 2008)

Looking to make some long term investments in beaten down but good (well according to research) stocks like Beach Petroleum, Roc Oil, Neptune, Envirozel.


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## Bill M (31 January 2008)

Nyden said:


> No one can tell *you*
> At the moment you can make 8% with 0 risk ...




Where where where??? Provide evidence/links and I'm in.


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## zt3000 (1 February 2008)

So say you have a loan with a bank ... and the bank collapses ... what happens to your loan?

Surely they cant recall the loan and obviously if you cant pay it then they take the asset which leaves you up sh*t creak without a paddle??


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## wayneL (1 February 2008)

zt3000 said:


> So say you have a loan with a bank ... and the bank collapses ... what happens to your loan?
> 
> Surely they cant recall the loan and obviously if you cant pay it then they take the asset which leaves you up sh*t creak without a paddle??




Another institution will simply purchase the debt and instead of monthly paymemnts going to XYZ bank, it will go to ABC bank. Your terms will not change.


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## TheRage (1 February 2008)

Wayne is spot on. Institutions purchase the debt which in the industry is known as distressed debt. The creditors are usually paid off but the deposit holders lose out. Banks can and will go bust and while I conceed it is unlikely the whole reason this country has prudential regulation through APRA is to minimise the chance of this happening.


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## PortfolioPlus (1 February 2008)

As a contrarian view how can you avoid adding select Property shares? Sure, they're out of favour, and have been "boxed around the ears" big time this fin year.

For instance, Prime Trust (PTN) currently at 74 cents and paying a dividend (in quarterly tranches of 2.1 cents each) is showing a yield of 11.6% fully tax deferred. With gearing at just 20% and a NTA represented by bricks and mortar of $1.02 and this, in an industry that is GROWING (retirement). Plus, Prime are largely property owners with close on 75% of their revenue stream in the form of rent with CPI additions and also a share of the DMF income.

Tricom have written a brilliant summary on this company with great comparisons to the competitors (don't associate the present woes of Tricom with the value of the research). T's estimate is a value of $1.03 by Dec 2008.

There is one "spot" on the PTN Xray...the manager has a long contract that doesn't have too many performance clauses in place. Plus the fees are higher than industry norm. 

So, do your own research...I've always been a property enthusiast and history has traditionally been very kind to property.

In the meantime with PNT you get a 11.6% yield...and a three year outlook will see the share price well beyond its July listing of $1.


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## CFD (1 February 2008)

zt3000 said:


> So say you have a loan with a bank ... and the bank collapses ... what happens to your loan?
> 
> Surely they cant recall the loan and obviously if you cant pay it then they take the asset which leaves you up sh*t creak without a paddle??




I reckon they can. Others have stated what is more likely to happen, but yes they can. Now you know why people shouldn't winge about banks' profits.


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## cordelia (1 February 2008)

CFD said:


> I reckon they can. Others have stated what is more likely to happen, but yes they can. Now you know why people shouldn't winge about banks' profits.




yes they can but realistically it would cause pandamonium....imagine all the housing loans that Bankwest finance. If they suddenly called them in and people had to sell thier homes  wouldn't it  flood the market and leave thousands of homeless people looking for rentals......


I think the sub-prime thing has been factored into the price of shares now. I think that there is such a sense of instability at the moment that people are reluctant to stick their toes in the water ...so to speak. A dramatic fall such as just has been experienced is a reality check for many....particularly those with super nearing retirement.

I know some people are keen to jump back in get shares at cheap prices but I just think it can go either way at the moment....so sitting back watching


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## Rainmaker2000 (2 February 2008)

Portfolio, I like your contrarian bent.....property is a good asset when its not excessively geared like the recent horror stories......it's funny how listed and unlisted property in now firmly in the dog house but Aussies, it seems, still can't get enough of residential property....I think time will tell on that one.....

Meanwhile, I've been doing a bit of scouting on ASX property stocks.....it appears there are a few gems, but lots of disasters as well


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## wayneL (5 February 2008)

wayneL said:


> A years supply of food and a .357 magnum?
> 
> 
> 
> (Just joking)



Well I was joking, but this guy isn't:

http://www.bloomberg.com/apps/news?pid=20601088&sid=aImBVle3OMyo

Holy Crap! What a horrible contemplation.


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