My first stocks :D

[Longjaw]

Hi,
As this is my first post,I want to introduce myself and tell you a little about me,

I have been an investor in property for several years and hold a small portfolio of properties in coastal and mining areas.

I have been feeling a little down lately as property prices are lower and the risks for exit are high.

I have had some money put aside waiting for a cheap bargain property but to date I haven't taken the plunge and spent it.

I have always wondered about the stock market and this week I signed with nabtrade and made my first buys.

I don't know **** about share trading but I'm starting small and as I do with property I am not putting all my eggs in the same basket.

I have chosen the following and would love feedback ,good or bad on my selections.

I haven't made any money this week but I haven't lost any either

CGH
RIO
WHC
AWC
NWE
COH

There it is,at this stage I am not paying broker fees as I am on the first 20 trades free so that gives me a little learning room

Be kind to the nube

 

[springhill]

Hi Longjaw,

Welcome to ASF. As a starting point it might help other members if you outlined the reasons why you chose those particular stocks. Ie, dividends, capital growth, defensive positioning etc
You will get a better concentration of feedback if you provide some more in depth information.

Not my end of town so I am not qualified to give an opinion.
All the best.

 

[Knobby22]

Australians call them shares not stocks.
You are game to hold Rio imo.

 

[ROE]

Hi,
As this is my first post,I want to introduce myself and tell you a little about me,

I have been an investor in property for several years and hold a small portfolio of properties in coastal and mining areas.

I have been feeling a little down lately as property prices are lower and the risks for exit are high.

I have had some money put aside waiting for a cheap bargain property but to date I haven't taken the plunge and spent it.

I have always wondered about the stock market and this week I signed with nabtrade and made my first buys.

I don't know **** about share trading but I'm starting small and as I do with property I am not putting all my eggs in the same basket.

I have chosen the following and would love feedback ,good or bad on my selections.

I haven't made any money this week but I haven't lost any either

CGH
RIO
WHC
AWC
NWE
COH

There it is,at this stage I am not paying broker fees as I am on the first 20 trades free so that gives me a little learning room

Be kind to the nube

Most of them are resource and energy stock and I'm not into those area so I know little...

COH good company but I think their price is too high at the current level, I think they are losing market share not huge but their competitor are eating in...and the fact management came out defending they not losing market

shares tell me they are starting to lose market share...at this price it need to grow at a healthy clip each year for a number of years and I cant confidently predict that it can so I stay out....not saying that is how it will pan out
just my opinion in approaching this stock....it could go to $80 or $100 but for me too expensive to touch....

CGH I have some of them after the massive sell off, someone who bought at IPO price will be will under water
but at 40s level I think there is a decent chance of recovery and
the market mark it down due and recent mining slow down and management trust
they new listed, management gave prediction that are off the mark and didn't see the slow down coming...

CKF followed exact same path and pretty much exact same thing happen to them before it recovered....

good luck and enjoy your investment journey..

 

[Longjaw]

Hi Longjaw,

Welcome to ASF. As a starting point it might help other members if you outlined the reasons why you chose those particular stocks. Ie, dividends, capital growth, defensive positioning etc
You will get a better concentration of feedback if you provide some more in depth information.

Not my end of town so I am not qualified to give an opinion.
All the best.

Thanks for your quick reply,

I have property in NSW so the WHC is in the backyard of the largest investment i have,so I suppose I am hopeful they will go forward,mining is something I have been around for a while so short term they should perform well and I understand if there is a dry start included.

I have only had several days to chose these stocks so the reason is probably I like the underdog as this is where the larger returns are found.

Just like an old set of run down flats that no one wants just waiting for a loving new owner to transform them into a swan.

I have taken a couple of more expensive stocks like COH and RIO just to see what happens,just like in monopoly

I do not yet understand the dividends or franking but I am sure it will come to me in time

I have only just yesterday found out about the falling knife and I guarantee you I will be cut to pieces but I haven't invested anything I cannot afford to lose at this stage.

I am happy to sell any of these and move forward into something different but I needed to buy something to start this journey.

 

[Longjaw]

Most of them are resource and energy stock and I'm not into those area so I know little...

COH good company but I think their price is too high at the current level, I think they are losing market share not huge but their competitor are eating in...and the fact management came out defending they not losing market

shares tell me they are starting to lose market share...at this price it need to grow at a healthy clip each year for a number of years and I cant confidently predict that it can so I stay out....not saying that is how it will pan out
just my opinion in approaching this stock....it could go to $80 or $100 but for me too expensive to touch....

CGH I have some of them after the massive sell off, someone who bought at IPO price will be will under water
but at 40s level I think there is a decent chance of recovery and
the market mark it down due and recent mining slow down and management trust
they rnew listed, management gave prediction that are off the mak and didn't see the slow down coming...

CKF followed exact same path and pretty much exact same thing happen to them before it recovered....

good luck and enjoy your investment journey..

Thanks for your reply,
I like the feel of COH and I agree the price is a little high,but there is room to move and I am patient.
CGH I only bought yesterday after I read something on the BHP site,I am hopeful they will get up.

 

[Longjaw]

Australians call them shares not stocks.
You are game to hold Rio imo.

I am such a nube I didn't know they were called shares here
I have only 1k in Rio and only held them for a couple of days ,do you have an alternate for me in the same sector?

 

[galumay]

I have only 1k in Rio and only held them for a couple of days ,do you have an alternate for me in the same sector?

I actually think RIO is the only resources share in your portfolio i would consider holding, like ROE i dont buy resources stock, dont like the cyclic nature of the business and the dependence on intangible assets (minerals in the ground).

RIO should be at a low at the moment given their extraordinary managerial incompetence, but they do have good resources and they have now basically completely written off the disastrous purchase of Alcan so as Alumina turns around they will make good returns.

The main thing I would suggest is that having rushed in with insufficient research and understanding, dont panic and sellout for a loss. Try to assess which of your purchases are ones where you have invested in good profitable businesses with a likelihood of continuing profits and hopefully strong dividend streams and hang onto them for the long term. If your research leads you to believe that any of your purchases are real dogs that have no prospects then sell and swallow your pride!

BTW, none of the above is financial advice and i may well be 100% wrong.

 

[McLovin]

Hi,
As this is my first post,I want to introduce myself and tell you a little about me,

I have been an investor in property for several years and hold a small portfolio of properties in coastal and mining areas.

I have been feeling a little down lately as property prices are lower and the risks for exit are high.

I have had some money put aside waiting for a cheap bargain property but to date I haven't taken the plunge and spent it.

I have always wondered about the stock market and this week I signed with nabtrade and made my first buys.

I don't know **** about share trading but I'm starting small and as I do with property I am not putting all my eggs in the same basket.

I have chosen the following and would love feedback ,good or bad on my selections.

I haven't made any money this week but I haven't lost any either

CGH
RIO
WHC
AWC
NWE
COH

There it is,at this stage I am not paying broker fees as I am on the first 20 trades free so that gives me a little learning room

Be kind to the nube

You hold property in mining areas which have high exit risks (presumably related to a mining slowdown) and on top of that you've now created a portfolio of mining and mining related companies?

Just curious as to the reasoning behind that.

Like ROE, I don't invest in mining because it's too volatile and requires me to make too many assumptions.

 

[So_Cynical]

Hi,

I have chosen the following and would love feedback ,good or bad on my selections.

CGH
RIO
WHC
AWC
NWE
COH

Be kind to the nube

I'm a contrarian too!

Welcome to ASF, you will met all sorts here, not many contrarians though so expect a lot of negative comments as you go forward...with your stock choices its gona take some time so i hope your prepared for a journey, personally i think your in too early, as ive been saying, an opportunity is coming with the miners/etc but i don't think we are there yet.

 

[Longjaw]

You hold property in mining areas which have high exit risks (presumably related to a mining slowdown) and on top of that you've now created a portfolio of mining and mining related companies?

Just curious as to the reasoning behind that.

Like ROE, I don't invest in mining because it's too volatile and requires me to make too many assumptions.

That's the sort of information I am looking for,I dont want to have all mining related shares and it looks like I already have subconsciously ??

I didn't know that and I would be the first to say,don't put all your eggs in the one basket>
I though I had a good range,
What area don't I cover in my portfolio that you can see?

 

[Longjaw]

I'm a contrarian too!

Welcome to ASF, you will met all sorts here, not many contrarians though so expect a lot of negative comments as you go forward...with your stock choices its gona take some time so i hope your prepared for a journey, personally i think your in too early, as ive been saying, an opportunity is coming with the miners/etc but i don't think we are there yet.

I had to look up what a contrarian means

You are right I don't follow the masses,I will always look a little deeper than most others and look at all options and sometimes I go on a gut feeling and I don't know why.I don't like to read financial reports like some people,I have a friend who always says the devil is in the fine print and spends all his time researching but by the time he is ready to buy a property,the bargain or opportunity is gone or he's talked himself out of it.

It hasn't failed me in property yet and hopefully I can use that same instinct and turn it toward the shares?

When I spotted CGH a couple of days ago I got that gut feeling very strong,hopefully I am right.
I am prepared for the journey and at the moment I am just trying to find shares that I can trade long term but in the meantime I am feeling the water.
(I got the same feeling with COH by the way.)

 

[galumay]

What area don't I cover in my portfolio that you can see?

Banks, Insurance, big retailers (woolies/westfarmers), online services.....

Many different sectors and it would be mad to try to cover all of them.

 

[Longjaw]

Banks, Insurance, big retailers (woolies/westfarmers), online services.....

Many different sectors and it would be mad to try to cover all of them.

I am watching WOW and the banks for my three young children's shares as I feel they are a lot safer for them long term.I would hate to lose their money so I am more careful .

 

[ROE]

I have taken a couple of more expensive stocks like COH and RIO just to see what happens,just like in monopoly

I do not yet understand the dividends or franking but I am sure it will come to me in time

Monopoly is important but the price you pay for a business is even more important ...the higher price you pay the lower your return and if for some reason you pay at the top of the market it could be a fair way down and many years of recovery before you make a buck out of it....

And the two business you describe isn't really monopoly they just have large market share, there are many other doing the same thing as they do....Brazil has some of the largest Iron Ore miners as well along with our BHP/FMG etc..

Monopoly is when you can command your own price and dictate your term....iron ore is supply and demand business and you can not control its price....BHP and RIO try but it fall down to demand....if China want 50% less you see the price will collapse... Woolies is more of the monopoly than those 2 because they can dictate their term and price...

Dividend is a share of profit made from the business, say business A make $100 profit this year and they decided to pay out $50 as dividend and keep the other $50 for expansion and you have 1% of the shares....your share of dividend is 5c ...

Franked dividends are payments made to shareholders on which the company has already paid tax (usually 30%) if you received 5c fully franked ...30% has already taken out as tax and if your tax bracket is lower than 30% you entitle for a refund of the difference say your tax bracket is 20% ...you get 10% back when your lodge your tax return...

If you don't have much money in those shares I wouldn't worry too much about it...treat it as an education and I found you learn better when you have something at stake.....As time goes by you will discover your niche and know what business you like to be invested in.

And share price of 20c could be more expensive than $10 dollars one, it got nothing to do with price of the share but its intrinsic value...(the value of the business going forward and its ability to generate profits)...

business of 20c generates 1m profit and business of $10 generate $2 mil profit which is more value ....certainly the $10 one...

 

[sydboy007]

How much have you invested in each company?

While you might get the buys for free, if you've been buying small parcels then the sell side will eat up a lot of the profit.

Since you've just started investing in shares, and from the sounds of it you sort "jumped" I'd like to know how much research you did prior to your purchases.

I'm starting to gravitate to ETFs that give me diversity in 10K bites, which lets me pick sectors I think will out perform the market, and then let the ETF manager hopefully make some decent stock selections for me. They work out cheaper than managed funds, and much easier to buy and sell.

We all like to think we can beat the market, but at least half don't.

I've found I'm far more successful in my SMSF investment selection than I've ever been on the personal side. IF I can figure out why I might move back to picking specific stocks.

 

[Longjaw]

Monopoly is important but the price you pay for a business is even more important ...the higher price you pay the lower your return and if for some reason you pay at the top of the market it could be a fair way down and many years of recovery before you make a buck out of it....

And the two business you describe isn't really monopoly they just have large market share, there are many other doing the same thing as they do....Brazil has some of the largest Iron Ore miners as well along with our BHP/FMG etc..

Monopoly is when you can command your own price and dictate your term....iron ore is supply and demand business and you can not control its price....BHP and RIO try but it fall down to demand....if China want 50% less you see the price will collapse... Woolies is more of the monopoly than those 2 because they can dictate their term and price...

Dividend is a share of profit made from the business, say business A make $100 profit this year and they decided to pay out $50 as dividend and keep the other $50 for expansion and you have 1% of the shares....your share of dividend is 5c ...

Franked dividends are payments made to shareholders on which the company has already paid tax (usually 30%) if you received 5c fully franked ...30% has already taken out as tax and if your tax bracket is lower than 30% you entitle for a refund of the difference say your tax bracket is 20% ...you get 10% back when your lodge your tax return...

If you don't have much money in those shares I wouldn't worry too much about it...treat it as an education and I found you learn better when you have something at stake.....As time goes by you will discover your niche and know what business you like to be invested in.

And share price of 20c could be more expensive than $10 dollars one, it got nothing to do with price of the share but its intrinsic value...(the value of the business going forward and its ability to generate profits)...

business of 20c generates 1m profit and business of $10 generate $2 mil profit which is more value ....certainly the $10 one...

Thanks for explaining it to me,to be honest I find it hard to take in so much at once and will slowly absorb it as time goes by.
I do understand buying high is a risk and that is why I included only two in my portfolio.I did steer towards BHP instead of RIO but decided on going with RIO,doesn't mean I wont buy some BHP in the near future and see which one I like better.

 

[Longjaw]

How much have you invested in each company?

While you might get the buys for free, if you've been buying small parcels then the sell side will eat up a lot of the profit.

Since you've just started investing in shares, and from the sounds of it you sort "jumped" I'd like to know how much research you did prior to your purchases.

I'm starting to gravitate to ETFs that give me diversity in 10K bites, which lets me pick sectors I think will out perform the market, and then let the ETF manager hopefully make some decent stock selections for me. They work out cheaper than managed funds, and much easier to buy and sell.

We all like to think we can beat the market, but at least half don't.

I've found I'm far more successful in my SMSF investment selection than I've ever been on the personal side. IF I can figure out why I might move back to picking specific stocks.

So far I have around 10K in just to get a feel,spread around the six companies,I can add or sell as I get more knowledge of these shares.
I get the 90 days / 20 free online trades so I am assuming this includes some sells in there.
I should have it all sorted by then and probably end up with around 10 companies all up.

These will hopefully be long term holds unless I see a good profit jump up in front of me.
I like the idea of your EFTs for the future but for me if I get someone else to do it I wont learn but is definitely something to look at in the new year

 

[sydboy007]

So far I have around 10K in just to get a feel,spread around the six companies,I can add or sell as I get more knowledge of these shares.
I get the 90 days / 20 free online trades so I am assuming this includes some sells in there.
I should have it all sorted by then and probably end up with around 10 companies all up.

These will hopefully be long term holds unless I see a good profit jump up in front of me.
I like the idea of your EFTs for the future but for me if I get someone else to do it I wont learn but is definitely something to look at in the new year

So you will have 10 * 10K or 10 * 1K investments?

The sell will be $15 a trade with NAB from memory

IF you have a small amount to invest then an ETF is the way to go, otherwise you will eat up a lot of profit when you sell. 10K into an ETF provides the same diversity oas what your going for now, but with far less costs in terms of the sell side.

You can learn without actually doing. Is always good to just do some dummy investments and see how they go. Keep a track of the reasons why and then see how those reasons hold up over the months.

I keep an investment journal for my SMSF. I note the whys of the purchase, and then each qtr I refer back to it and see if the reasons still stack up, and if I've identified any opportunities that might provide better returns into the future.

 

[Longjaw]

So you will have 10 * 10K or 10 * 1K investments?

The sell will be $15 a trade with NAB from memory

IF you have a small amount to invest then an ETF is the way to go, otherwise you will eat up a lot of profit when you sell. 10K into an ETF provides the same diversity oas what your going for now, but with far less costs in terms of the sell side.

You can learn without actually doing. Is always good to just do some dummy investments and see how they go. Keep a track of the reasons why and then see how those reasons hold up over the months.

I keep an investment journal for my SMSF. I note the whys of the purchase, and then each qtr I refer back to it and see if the reasons still stack up, and if I've identified any opportunities that might provide better returns into the future.

I have only used 10K to spread around the 6 companies at the moment,when I get comfortable I can add to that.

I don't want to go over that amount at this stage,

I cant personally see any reason for dummy investments,bit like picking numbers in the lotto,not putting them on and finding out your numbers came up and you didn't buy the ticket.