ARG - Argo Investments

[Dona Ferentes]

Argo had a buyback last month, first notice appeared on 11 Nov

Number of securities that have ceased
840,692
Reason for cessation
Cancellation pursuant to an on-market buy-back
Date of cessation
3/12/2024
Total consideration paid or payable
for the securities
AUD 7,539,478.6500

.
and today

Date of this announcement
17/12/2024
ASX Security code and class of securities that are subject of the buy-back
ARG : ORDINARY FULLY PAID
The type of buy-back is:
On market buy-back

 

[monkton]

Good discount to NTA at present, so good time for a buyback.

 

[qldfrog]

Good discount to NTA at present, so good time for a buyback.

And good time to buy?

 

[divs4ever]

And good time to buy?

i factor in the div. yield as an important decision

but maybe .. if the market corrected , they might be heavily sold down in a panicked market

so maybe not yet .. but one to watch ( as well as it's conservative rivals )

 

[qldfrog]

And good time to buy?

Do i buy an index etf or argo?
If the argo team can at least match the index, then buying argo is a nice way to get done of that index at a discount .
I do own ARG

 

[rolly1]

Do i buy an index etf or argo?
If the argo team can at least match the index, then buying argo is a nice way to get done of that index at a discount .
I do own ARG

Maybe WLE is worth your look. Benchmark asx200, better div yield, better return, about same discount % to nta and directors are buying too.

 

[qldfrog]

Do i buy an index etf or argo?
If the argo team can at least match the index, then buying argo is a nice way to get done of that index at a discount .
I do own ARG

I meant get some of that index

 

[Ferret]

Do i buy an index etf or argo?
If the argo team can at least match the index, then buying argo is a nice way to get done of that index at a discount .

My thinking too.
Buy the LIC when it is at a discount to its NAV.
Buy the index ETF when the LICs are trading above their NAVs.

 

[divs4ever]

My thinking too.
Buy the LIC when it is at a discount to its NAV.
Buy the index ETF when the LICs are trading above their NAVs.

remember ETFs drop very quickly in line with their index ( courtesy of the 'market makers ) whereas a LIC is usually slower to drop and slower to recover ( but offer better value in that dip , if management 'smooths dividends ' , because your dividends are often 'pre-planned' , give or take the special dividends if they are prudent

 

[Bellcose]

My thinking too.
Buy the LIC when it is at a discount to its NAV.
Buy the index ETF when the LICs are trading above their NAVs.

Yeah, an approach I have been applying for so long I've forgotten when I started doing it.

 

[monkton]

Do i buy an index etf or argo?
If the argo team can at least match the index, then buying argo is a nice way to get done of that index at a discount .
I do own ARG

Yes as @Ferret said in #208, discounted NTA then ARG or other old school Lic's. I like the dividend smoothing in tough times.

 

[divs4ever]

I like the dividend smoothing in tough times.

yes , it ( div. smoothing ) has it's charms for me as well

especially after 2020/2021 where divs ( in individual stocks ) were slashed , delayed and even withheld ( even after being declared )

div. smoothing ( in moderation ) is very useful if trying for an income from your investments

BUT those cash reserves can lure unwanted predators ( that are credit rich but cash-poor ) it isn't entirely a free lunch

 

[monkton]

Maybe WLE is worth your look. Benchmark asx200, better div yield, better return, about same discount % to nta and directors are buying too.

Yes, but if you look at the 1yr.,3yr. & 5yr performance it tells a different story. I do hold WLE & like the big yield, but the fees are high but am not sure if this is sustainable long term, WAM itself is a case in point, high fees, high yield but lousy performance of share price, glad I sold out of that at a profit so am watching WLE.

 

[divs4ever]

Yes, but if you look at the 1yr.,3yr. & 5yr performance it tells a different story. I do hold WLE & like the big yield, but the fees are high but am not sure if this is sustainable long term, WAM itself is a case in point, high fees, high yield but lousy performance of share price, glad I sold out of that at a profit so am watching WLE.

i hold WAX which has been the outlier of the Wilson stable , where i bought in sub 70 cents and reduced ( rescued the investment capital ) @ $1.40 , but is currently come back down to under $1.15

but i bought WAX for the small cap , high activity exposure , and the yield ( which is nice on a 70 cent outlay )

i do NOT mind high fees if they produce the returns ( most of the time )

whereas ARG is the polar opposite , i just need an attractive entry price ( to buy some of them )

 

[Bellcose]

I like the dividend smoothing in tough times.

I understand your position on this. In recent times ARG has amended it's dividend statement to one of sustainable dividends. To my mind, this is a more than reasonable approach since there may be occasions for the company to reduce its payable depending of the circumstances and being able to maintain that reduced dividend for an extended period.

 

[Bellcose]

If the argo team can at least match the index, then buying argo is a nice way to get done of that index at a discount .

A random thought. ARG has less than 100 separate holdings. And yet it is compared with VAS (300 holdings approx) or STW/A200/IOZ (200 holdings). Plus it's Top 10 is also different to the Top 10 of the index funds. Strange how we seem to tend to do comparisons.

 

[qldfrog]

A random thought. ARG has less than 100 separate holdings. And yet it is compared with VAS (300 holdings approx) or STW/A200/IOZ (200 holdings). Plus it's Top 10 is also different to the Top 10 of the index funds. Strange how we seem to tend to do comparisons.

I just want to make sure ARG is earning its fee;
if it can not historically match the index, why bother

 

[divs4ever]

A random thought. ARG has less than 100 separate holdings. And yet it is compared with VAS (300 holdings approx) or STW/A200/IOZ (200 holdings). Plus it's Top 10 is also different to the Top 10 of the index funds. Strange how we seem to tend to do comparisons.

it can get very strange in LIC/managed fund world

i remember a discussion on a different ( now defunct ) forum where ARG used to be traded as a de-facto top 100/200 index by seasoned traders

but just because the components differ doesn't mean they can't equal/exceed the results

at one stage the XJO was full of buy-now-pay-later stocks that still didn't make a profit ( ARG looked very sensible back then )

 

[Bellcose]

I just want to make sure ARG is earning its fee;
if it can not historically match the index, why bother

Fair enough. Only you can judge whether that's worth $160 per $100k.

 

[qldfrog]

Fair enough. Only you can judge whether that's worth $160 per $100k.

Indeed, and bought so i think worthwhile especially with NTA discount
Only regret is why buying yesterday and not today..but in the scale of things