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ARG - Argo Investments

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Thanks for the post drmb.
I agree with your issue on the liquidity issue, but in my mind when I purchased AUI I had no exit strategy in mind. I still consider to buy, hold and reinvest the earnings and hold a significant chunk.
AUI has performed well and will continue to do so, as will other quality LIC's such as ARG.
The downside as you mentioned was the spp and the ability to invest $5k or whatever the max may be. In that case, thats why I also hold CHO. Another quality to have in the stable particularly heavy on banking.
 
Kravis said:
Thanks for the post drmb.
I agree with your issue on the liquidity issue, but in my mind when I purchased AUI I had no exit strategy in mind. I still consider to buy, hold and reinvest the earnings and hold a significant chunk.
AUI has performed well and will continue to do so, as will other quality LIC's such as ARG.
The downside as you mentioned was the spp and the ability to invest $5k or whatever the max may be. In that case, thats why I also hold CHO. Another quality to have in the stable particularly heavy on banking.
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CHO and AUI are definitely elite LICS. Agreed, IMO you can't go wrong holding these long. I also figure I have exposure to these through ARG, since AUI and Milton are in top 25, and CHO is held by milton. Cheers
 
Given this day of carnage when the ASX 200 was, at one stage, down 300 points to below 5500, a thought struck me. I hold ARG and I recall that in its latest report, it was sitting on over $420M in CASH.

I wonder if it has been in the market over the last few days with its ears pinned back? If so, I may have even more reason to take up the SPP which is on offer.
 
Its great that ARG is sitting on plenty off cash at the moment. But at the same time MBL was their biggest single holding by far. It is sure to have given the asset backing figure a big jolt this month.

I prefer to sit on the sidelines and wait until the market digests ARG's 31 August asset backing before considering buying.
 
I have read that ARG has been loading up on stocks.

They rarely sell stocks.

They are long term investors.

The NTA will be interesting next month.

But I suspect they are buying not selling.

There NTA would have lost a fair bit, but over the long run short term pain for long term gain.

This is what ARG was after a correction.

And this was what that big capital raising was for.

I think 7.70 is a little expensive though I think the NTA might be somewhere around $7.00-7.30 at a guess.

Because they have MBL and heaps of em.
 
This stock is not going to trade above its NTA I wouldnt have thought so might as well wait for the next announcement.
 
argo investments 10 year returns averaging 14% last 3 years has averaged 19% last 5 years 18 %.

last 12 months just 7.3%

what is this telling us? Either they are investing in the wrong things? Which I presume they aren't if you look at there holdings, or it is out of favour.

Uncertainty if the something people fear most in the market, so whilst there is uncertainty over the US, and the ARG are stagnatge, it appears a great time to accumulate the stock.
 
I have actually met Rob Patterson briefly and he is a very intelligent man.

I like Argo as a stock, especially if you are looking for diversified exposure. More of a managed fund than a stock.

Although the market doesnt ever seem to rate it heaps highly so i dont own any. :)

Good defensive stock imo.
 
Ken said:
last 12 months just 7.3%

what is this telling us? Either they are investing in the wrong things? Which I presume they aren't if you look at there holdings, or it is out of favour.
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Keep in mind the total dividend of $0.27 paid out in the past year, as well as the 1-for-8 renounceable rights issue in February, and the SPP offered at a discount to market price. This brings the return for the past year to 10%+.

Most LICs have underperformed the index in recent times due to their underexposure to the resources sector, which is considered more volatile than other sectors and tends to pay smaller dividends.

Interestingly, LICs tend to be steadier than the broader market, because they are largely owned by buy-and-hold investors (often SMSFs). For example, in today's 3.5% drop in the S&P/ASX200, ARG fell only 0.2%, MLT fell 0.5%, CHO 0.3%, AFI 1.5%, DUI 0.5% etc.
 
For those ARG shareholders;
ARG is, as usual, allowing existing shareholders to purchase some additional shares up to $2,500.

The price these shares will be provided at is $7.39.
Unfortunately, the current price is at $7.21.

Do you think many people will buy shares, and if they do not get much of an uptake, it is likely that future Share Purchase Plans will either:
a) go back to $5,000
b) be priced at a greater discount. The current discount is 2.5% but they can go to 5%.

Cheers,
Brett
 
For the first time in many years, I wont be taking up the spp. Arg hasnt really done all that much in comparison with other shares so I have even lightened my portfolio.
 
Yes it is also the first time that a business i am involved in will not be taking up their rights issue.

ARG to me has always been pretty much an index tracking fund and not much else really.

I strongly argued against taking up the SPP and i was glad the other members saw my point of view.
 
May I ask a basic question? I gather ARG had a capital return [over and above dividends] of, usually, $1/year for the years 2002-6. Was this a straight payment to share-holders and why did it cease?
I may be misinterpreting this but I did receive a straight capital return, about 2 years ago, for another stock I hold.
Also, please, how does NTA fit into your assessments of ARG?
Comments welcome
Thanks
This is from Etrade:
Dividend History
Type Cents per share Frnk % Ex Dividend Date Dividend Pay Date
Interim 14.00 100 12/2/2008 4/3/2008
Final 15.00 100 14/8/2007 5/9/2007
Interim 12.00 100 12/2/2007 9/3/2007
Capital Return 1.00 100 17/8/2006 8/9/2006
Final 13.00 100 17/8/2006 8/9/2006
Interim 11.00 100 20/2/2006 10/3/2006
Final 11.00 100 17/8/2005 8/9/2005
Capital Return 1.00 100 16/8/2005 8/6/2005
Interim 10.00 100 21/2/2005 11/3/2005
Capital Return 0.50 100 16/8/2004 8/9/2004
Final 9.50 100 17/8/2004 8/9/2004
Interim 8.50 100 23/2/2004 12/3/2004
Capital Return 1.00 100 18/8/2003 12/9/2003
Final 8.50 100 18/8/2003 12/9/2003
Special Cash 0.50 100 18/8/2003 12/9/2003
Interim 7.50 100 21/2/2003 14/3/2003
Special Cash 0.50 100 21/2/2003 14/3/2003
Capital Return 1.00 100 19/8/2002 13/9/2002
 
Muschu said:
I gather ARG had a capital return [over and above dividends] of, usually, $1/year for the years 2002-6. Was this a straight payment to share-holders and why did it cease?
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Those years had a capital return of 1 cent, not 1 dollar. Unfortunately I became an ARG shareholders after these capital returns, but I understand they would have been paid with dividends (i.e. as either cash or to be reinvested in the DRP, as per shareholder preference).

Muschu said:
Also, please, how does NTA fit into your assessments of ARG?
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If ARG's share price is below NTA, this means that you can purchase $1 of assets for less than $1, and thus signifies that you are getting good value. However, the ratio of share price to NTA varies continuously from a discount to a premium, so I wouldn't get too hung up on what the ratio might be at any particular time. As John Bogle (founder of the Vanguard Group) says, the best time to invest in a quality company (like ARG or a low-cost index fund) is when you have the money to do so.
 
I went to the Argo Shareholder meeting today here in Adelaide (we don't have a lot so I thought I would go)

This was my first AGM and I thought I would share a few of my observations:

1. We were at the Adelaide Convention Centre and the room they organised was almost packed out, I would guess in excess of 750 people attended.

2. At 32, I was definetely in the young crowd, there was a lot of grey or balding heads in attendance. I actually feel that a lot were there for the free sandwhichs and cake at the end.

3. On the whole, the audience was happy with the directors over the past year, with a record profit, albeit since the end of last finance years, things have continued to go down hill in terms of share price, and the prospect for dividend increases.

4. There were not a lot of questions, but this may be normal.

5. They showed their top 20 holdings as of the 30 Seoptember. They also said they have $200m+ in cash at the moment which is actually the biggest holding.

Point 5 begs the question, when will they start buying, unfrotunately, there was now answer provided.

Cheers,
Brett
 
What were the nibblies like...they say that the oldies got to AGM's for the refreshments.
Are the quality of the nibblies an indication of the strength of the company?
I am not far from the oldie category myself and wonder whether I would do better with a Vili's pie ?
 
They looked like gourmet triangle sandwhiches and the only desert I saw was a mini chocolate eclair thing.

My problem was I couldn't get past the hungry masses to even get near a table. I do think a fairly large portion are there just for the free lunch, or maybe it was afternoon tea for some of them :)

If the fare was a little more to my liking I may have stuck around and tried to get closer to a table.

Cheers,
Brett
 
This favourite of the blue rinse set on a monthly chart is very interesting.

The recent Feb/Mar 09 lows bounced off a long term up trend and the ecstasy of early 2007 shows the beginning of a downtrend from that high.

Both lines are approaching a meeting.

Perhaps an indication of "consensus value."

It will be interesting to see how this golden oldie performs next year.

I may even buy a few if it touches the lower line in October.

gg
 

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Just thought i point out Argo's recent announcement - new executive team...

good to know that R.Patterson is joining the board after retirement..
 
Can anyone explain why the SP for ARG has fallen by about 6% in the March Qtr while funds that track the S&P 200 such as STW have actually risen a % or 2. I know there is a 12 cent dividend which came out, but the SP has fallen a lot more than 12 cents. As I understand it, not only are you paying Management, but there is also a premium to NTA in the price. I have seen estimates of this premium as high as 15%! - although this figure is not recent.

I hold ARG in my SMSF but am looking for an exit point.
 
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