Something other than mining or banking

[ozdave]

Hi all, well first post, been lurking for a while and have to say great forum! loads of informative and friendly posts around

So i'm just wondering what people are buying/holding thats NOT mining or banking on the asx at the moment? most of the talk anywhere is about these 2 sectors so im interested in what else is out there for a number of reasons.

Interested in hearing people thoughts!

Dave

 

[dink182]

Alcohol (LNN, FGL), because that won't be effected that much. Between the two of them, they have the Australia/New Zealand beer market cornered. Speaking to family and friends in the industry, sales aren't really that effected. They are expecting another bumper christmas period.


Construction companies with exposure to government contracts (LEI, MAH). Rudd will be announcing he will be spending his way out of the economic downturn. I am gambling that he does not give another handout, but rather will announce large capital spending on infrastructure projects. Both MAH and LEI will be awarded at least some of the new projects.

 

[sinner]

LNN is sitting on a 177% Debt/Equity ratio....

I like IHK (EWH international) and IZZ (FXI international), saw Jim Rogers on the youtube yesterday saying "selling China is like selling America in 1909". Apt advice if you ask me, from a dude who put his money where his mouth is sold most/all US assets and moved to Asia!

It's a nice mixed basked, everything from Bank of China to China Mobile.

EDIT: Worth pointing out gargantuan trade and bugdet surplus from China really drives JRs point home. They can afford to bail out all their companies, the US and the other western countries are borrowing money to bail out!

 

[Sean K]

Consumer staples supposed to be a defensive play example above FGL.

Construction has been decimated. Not sure if the bottom of LEI or WOR has been seen but still in solid looking down trends.

Utilities. We'll always need power.

Undertakers. People will keep dying.

Healthcare. SHL, COH, HSP, CSL.

Agriculture. ABB, is IPL ag? Ag and mining related I suppose.

 

[gfresh]

Healthcare is what I feel safer putting some money into at the moment, rest probably won't improve until there are signs the economy is recovering, and at the moment we are still on the downward path.

People get still sick, require treatment, during recessions, governments still have long-term contracts with providers, and things continue pretty much as are. Debt levels are a bit of a concern, and most of them are pretty loaded up - although some have taken nice steps to

SHL, PRY, COH, CSL, and HSP can all be considered.

The Sonic Placement at $11.60 is a nice deal (expected EPS growth this year too, good yield at that price), but if you've missed out on that you'd have to buy on market. I'd wait a bit, as price may fall after placement completed.

Yeah, utils as Kennas mentions as well are solid revenue streams.. ORG (this one particularly for the gas) is holding pretty steady, but could be a good pickup if it drops back any further.

 

[Smurf1976]

Utilities. We'll always need power.

Based on past recessions, worst case is 1 - 2% drop in consumption.

However, anyone depending on spot sales into the National Electricity Market could be hit harder. Firstly because price in any market tends to move more than physical volumes in either direction. Second because coal prices coming down will likely see lower price offers from black coal-fired generators. Third because the apparent ending or at least reduction in the drought will enable higher output from some coal-fired plants that have been running low on water as well as hydro-electric generation.

So utilities certainly, just not anyone who is primarily generating power for the market and is exposed to the spot price.

 

[Knobby22]

I really like ORG.

Flush with cash. Coal seam gas project for future growth. Doing a buyback and just paid another dividend. Good utility income.
Unlikely to lose your shirt should the stockmarket have anothe big drop which is a possibility.

 

[ozdave]

ORG has done really well in this market. I didnt start paying attention and getting in until a couple months ago so missed it but its just gone the complete opposite way to everything else. anyone who got in before may should be quite pleased with themselves

Anyone playing with any tech stocks anymore? they seem to have got a battering as well lately, not seeing anything that stands out from the crowd (but only just started on the sector list)

 

[So_Cynical]

Anyone playing with any tech stocks anymore? they seem to have got a battering as well lately, not seeing anything that stands out from the crowd (but only just started on the sector list)

U mite want to have a look at

DYE - Dyesol is the international leader in the commercialisation of Dye Solar
Cell (DSC) technology, bringing DSC to the forefront of the solar industry.
http://www.dyesol.com/

BLG - BluGlass was formed to commercialise unique technology used to produce
the semiconductor material gallium nitride (GaN).
http://www.bluglass.com.au/

DDT - Datadot develops asset-based identification technologies. DDT has
developed a microdot application, which allows various types of assets,
mainly motor vehicles, etc to be uniquely marked and identified.
http://www.datadotdna.com/

The technology all looks good and is mostly well advanced, charts all look pretty sick.

 

[ozdave]

nice one, thanks for the tips will be sure to check them out!