AEF - Australian Ethical Investment

[divs4ever]

Forgot to mention that buying these dips has been a profitable activity provided you can tolerate some further price falls. Although these dips are hard to buy.

@divs4ever I'd be much more interested in your thoughts and comments about the companies you're interested in buying now at current prices.

please keep in mind i am NOT a trader ( but have taken some short term opportunities )

currently i am looking at ( extra ) , RRL , GOR , EVN , MGX , FMG , WPL , CMW , and KSL ( which is now more interesting after the WBC deal was blocked )

BTW 'at current prices ' to me means roughly minus 10% on the last closing price i have been known to wait 5 years for a target price ( BPT)

i am considered a perma-bear elsewhere , because the issues i read about in the GFC don't appear to be fixed , just allowed to fester under the band-aid , and i decline to be optimistic until substantial progress is made

( think of me as more of a moray eel operating in a sea of sharks , that is hiding in a cave watching until a tasty morsel goes by )

cheers

i am looking for companies likely to survive almost anything

i am MOSTLY betting currencies will fall , allowing most of these to benefit from a weak local dollar and local costs rising slower than some international rivals

please note i am NOT expecting to get my target price for WPL even though i consider my target price is already too high , but am hoping they will inherit some quality BHP staff ( i already hold some BHP )

CMW is possibly a take-over target ( maybe only a change of control/partial take-over , but time will tell )

personally i think we have just been through a fake mining boom , unless of course this is a prelude to a MAJOR war ( and some nations are stock-piling while they can )

will various nut-jobs take us to war , i hope not , but it is a plausible distraction to the mess we are in ,

shares i do NOT hold but are interesting are MLG , MND AND QIP , the first two because i think the real mining investment boom is still roughly three years away , and QIP just has solid numbers ( if only it could get my target price )

 

[peter2]

@divs4ever Sorry to get us off the topic of AEF. I was hoping you'd post your current opinions on companies in the stock specific threads when others posted theirs. Your current opinions mean more to others than your historical buys.

It was such a good post that I'm obliged to comment. You're not a trader but you trade often. Initially I thought you were fiddling around the edges of your portfolio just for something to do. I've come to appreciate that you've learned to be a patient investor. To wait for the dips in the market and average up. It doesn't always work out but over the longer term I'm guessing you're happy enough with your results.

You're definitely a contrarian investor in that you wait for something to get beaten up before buying a parcel (gold, iron ore and oil companies have been beaten up lately).

It must be hard being a perma-bear while the market charges higher, even if it's all due to QE and low interest rates.

Thanks again and please feel welcome to continue posting your opinions in the stock specific threads.

 

[divs4ever]

i don't trade as often as you might think

6 months is short for me from memory 3 months is my shortest hold , and normally done because a company has made a move i dislike , and is NOT price-target driven

in AEF's case they started of as 'ethical investors ' and started to veer towards what is now ESG , , to me 'ethical ' means solid , honest well-run companies ,

also currently i am looking at sectors and themes mining because it seems to be one of the few sectors exporting at a profit , and considering we should be in the consolidation phase of a normal cycle , the miners in production now look to be well placed for any upswing in demand

i have tried to pick bottoms and sometimes ended up with a part-filled order to ruin the success , 4 or 10 shares is sometimes less than the brokerage , so would rather aim for a 'fair price ' and a second go at say 'fair price ' less 10 percent , and a third go at say less 25 percent

obviously if something important changes , i am likely to stop buying the dip , but the idea is to pick a solid share first , not just a 'market darling '

it is very had to assess a company now given the geo-political-medical climate currently , at least Joh Bjelke Petersen picked competent businesses when he handed out the contracts , the current mobs just splash cash to their friends

MAYBE things will change after the next Federal election , i bet these states will slow down once the money tree is locked up tight

i am actually an optimist , with glasses that see black and white , it just looks bearish to those who dream of better things

there are still SOME good companies out there at a reasonable price and i have been buying this and that for a little over 10 years
2011 and 2020 were pretty good if you had some reserve cash , in fact 2020 the problem was too many places to look at ,

so stuff hitting the radar now , like MCR , JYC , or SVW i was buying years ago and have even taken cash off the table on them

so if you look at AEF's latest portfolio moves , BVS , MVP , M7T , HPG , STG , JAN , RWL EYE , EPD to just go back to July this year you start to ask just what is their strategy , or at least i do

i hold WAX and WIC for their aggressive trading/investing strategy and they spit out some nice divs at my buying price for the extra risks taken

so when you hold several shares in 300 percent profit or more the current market seems to be over-priced , or inflation is rampant

 

[JohnDe]

No-one else is interested in AEF? Must be too busy counting your money. Since the last post AEF has made it's way to $11.

I put AEF into a conservative portfolio hoping that it's the right sort of set and forget position that won't require much monitoring. While it's been a good investment over the past year. It's not a set/forget type. Throughout the last year there have been many huge down days with little or unexplained reasons for them. Down days don't bother me, but HUGE down days do.

AEF had another one today. No news about it yet. The frequency of them throughout the chart makes this one a query and definitely not a set/forget position.

What irks me about this and many other investment managers are the huge fees that they gouge from the funds they manage. It's no wonder why most funds never trade above their NTA.

View attachment 130284

Another buying dip today? Down 7% so far, plus the previous drops during the week.

 

[eskys]

Another buying dip today? Down 7% so far, plus the previous drops during the week.

Saw it today.... l like looking in this section each morning for 'buying the dips' but didn't buy AEF

Company Performance​

	Volume	Today's Change
AEF	215,571	-0.620 (-5.15%)
DMP	144,515	-3.740 (-3.33%)
MCY	22,277	-0.180 (-3.11%)
MTS	1,466,786	-0.120 (-2.81%)
CEN	2,518	-0.170 (-2.25%)
JLG	104,353	-0.170 (-1.89%)
VSL	22,263	-0.180 (-1.86%)
MPL	1,455,341	-0.050 (-1.41%)
HMC	81,018	-0.100 (-1.31%)
MFG	701,793	-0.220 (-1.04%)

 

[divs4ever]

bought AEF in 2011 ( @ $24.45 and $19.10 ) and reduced/sold in April 2014 ( @ $36.50 , investment cash out ) and December 2015 ( @ $60.50 .. a complete exit )

they have done a share split since ( one share split into several )

the P/E and div. yield make it look unattractive ( to me ) currently

currently have an order in for extra CEN instead

DYOR

 

[Dona Ferentes]

@divs4ever Sorry to get us off the topic of AEF. I was hoping you'd post your current opinions on companies in the stock specific threads when others posted theirs. Your current opinions mean more to others than your historical buys.

bought AEF in 2011 ( @ $24.45 and $19.10 ) and reduced/sold in April 2014 ( @ $36.50 , investment cash out ) and December 2015 ( @ $60.50 .. a complete exit )

they have done a share split since ( one share split into several ) ...the P/E and div. yield make it look unattractive ( to me ) currently

currently have an order in for extra CEN instead

whereas all we really need is this except:

"the P/E and div. yield make it look unattractive ( to me ) currently"

"Therefore since brevity is the soul of wit and tediousness the limbs and outward flourishes I will be brief."

 

[peter2]

Back to AEF. There's been a selloff but I think this is a clear abc correction to the 50-62% buy zone that coincides with a prior trading range above the $10 level. If I was interested in a buy I'd be looking for a strong reversal pattern or a HL (even on the 1hr time frame). AEF is a smooth mover but has too many unexplained large daily selloffs for me.

 

[Miner]

Back to AEF. There's been a selloff but I think this is a clear abc correction to the 50-62% buy zone that coincides with a prior trading range above the $10 level. If I was interested in a buy I'd be looking for a strong reversal pattern or a HL (even on the 1hr time frame). AEF is a smooth mover but has too many unexplained large daily selloffs for me.

View attachment 136129

What do you reckon Pete on this ethical stock's unethical movement today ?

 

[divs4ever]

SOooo i am guessing the share-split didn't solve some of the liquidity glitches with this share

however despite this stocks past performance are folks being lured away by rival funds ( and ETFs ) there are plenty of choices NOW ( i mean for share investors rather than a AEF client )

 

[Miner]

SOooo i am guessing the share-split didn't solve some of the liquidity glitches with this share

however despite this stocks past performance are folks being lured away by rival funds ( and ETFs ) there are plenty of choices NOW ( i mean for share investors rather than a AEF client )

Thanks mate.
You write like Motley Fool advisers.
Take care

 

[frugal.rock]

SOooo i am guessing the share-split didn't solve some of the liquidity glitches with this share

What share spilt?

Or are you talking ancient history?
Nothing showing up for the last 3 years in the way of splits, according to Westpac charts.

 

[Miner]

What share spilt?

Or are you talking ancient history?
Nothing showing up for the last 3 years in the way of splits, according to Westpac charts.

AEF website rightly down for maintenance - that's an uncanny chill for me

https://www.australianethical.com.au/globalassets/pdf-files/asx-announcement/2018/20181210-aef-capital-reconstruction--share-split.pdf

After intrigued by @divs4ever I found the share split was back on 25 Oct 2018. So he was right on recollection of elephant like memory
The share prices were lagging flat until mid 2019. So there could be something more ethically happening before then and now from today. Look at 5 years chart.

 

[frugal.rock]

With no reference to a date, yes, it could of been anytime.... in the past 100 years ?

No liquidity issues trading wise imo. Lots of retail and insto money into it and has been in general overbought and exhausted territory for a while...

I might consider a buy (again) after its bottomed properly.
Good luck.

 

[peter2]

Victim of the falling market, especially today as FB fell >20% overnight (before our open), Paypal and Spotify are also being dumped. High growth tech is being trimmed significantly -20% to -50%. It may not stop there either.

 

[Garpal Gumnut]

Victim of the falling market, especially today as FB fell >20% overnight (before our open), Paypal and Spotify are also being dumped. High growth tech is being trimmed significantly -20% to -50%. It may not stop there either.

I'd agree. All those ethical funds are in to the big growth stocks in the IT Sector on NASDAQ.

It is a time of reckoning for their valuations.

gg

 

[Dona Ferentes]

launching an ETF today (AEAE) :

AEAE - Australian Ethical High Conviction Fund ETF

Australian Ethical is launching an ETF that has a similarity to their Managed Fund. The Market makers are starting their spread at 10.0000 / 9.6960 today as $10 is the base cost of assets as of CoB. Will watch to see if there is much uptake. AUS ETHICAL HIGH CONVICTION FUND (MANAGED FUND) ETF -...

www.aussiestockforums.com

 

[peter2]

How's the ESG investment going? "Down, down, prices are down". Up to 60% off.

 

[Miner]

How's the ESG investment going? "Down, down, prices are down". Up to 60% off.

View attachment 139544

Hi Pete
Is AEF going down constantly because there are no more companies earning profits being ethical or investors are buying Crown CWN and Aristocrat ALL shares instead of AEF?
Personally, I was having high hopes on AEF for the long term but probably it was too long term and exited as a stop loss.

 

[Dona Ferentes]

Is AEF going down constantly because there are no more companies earning profits being ethical or investors are buying CWN and ALL shares instead of AEF?

Just another Funds Management company, like Magellan MFG, Pendal and GQG, and others too many to mention, this one dabbles in ESG or 'ethical'; but not getting the dollars in the door. The investible dumb dollar is going to ETFs.

NH