Speculative Stock Portfolio

[Dona Ferentes]

After selling most of my SLC after a poor result, last month, I went back in today at $1.08. This follows the First State superfund takeover move on OptiComm OPC. If some long term player is gobbling up fibre optic networks, then there's a possibility another one could fall. Especially as a prior offer was at $1.90, even though it was pulled.

 

[aus_trader]

After selling most of my SLC after a poor result, last month, I went back in today at $1.08. This follows the First State superfund takeover move on OptiComm OPC. If some long term player is gobbling up fibre optic networks, then there's a possibility another one could fall. Especially as a prior offer was at $1.90, even though it was pulled.

SLC has spent a vast amount of money laying the sub-sea cabling to SE Asia and building the communications infrastructure. I have it in my watched stocks list as well and may consider buying in at some stage. An asset rich cash poor stock in my opinion, and as you said, one of these days the value of the assets may come into the radar of a big fund or private equity firm...

 

[aus_trader]

Shares have backed off today and I've locked in the gains of two stocks that have put some runs on the board.

Closed Stocks:

 

[aus_trader]

Since buying the 1 banking stock BOQ for this portfolio, I've been looking at what other companies could play a part in the artificially manufactured building boom. Artificially manufactured because of Govt grants for new homes and big budget extensions/renovations etc which I have mentioned in the past. Nevertheless there is money sloshing around and going to specific companies that would benefit and that's what I am aiming for.

I've been looking at a few players in the sector such as cement makers, brick makers etc. but I preferred a stock that provided a bit more diversity in terms of product range. I decided to buy a few shares of a stock that that has been in this portfolio before, CSR Limited (CSR).

They have a wide range of construction products to supply the building industry with, not just traditional bricks and pavers but new lighter weight products like Hebel, insulation products and roofing products...


It also has further diversification away from the building industry with CSR Sugar. I decided what's available at Coles and I was surprised how many varieties of sugar are available , below is just a few:



It pays a dividend as well usually, which would be appreciated by investors in the current environment.

Open Portfolio:

 

[frugal.rock]

Enjoy the sugar rush

Have you looked at FBR and EDE ?
There more of a speculative nature than CSR.
I believe sugar prices are at a world low... ?
I have been thinking about Boral and EDI Downer as potential stimulus beneficiary candidates. WAM is in general agreement with this theory...

 

[Miner]

Dont forget SHH - speculative list

 

[aus_trader]

Enjoy the sugar rush

Have you looked at FBR and EDE ?
There more of a speculative nature than CSR.
I believe sugar prices are at a world low... ?
I have been thinking about Boral and EDI Downer as potential stimulus beneficiary candidates. WAM is in general agreement with this theory...

Yes I have looked at few of them, in fact one of the stocks in this space locally I looked at was Boral. At 27x P/E I think it may have run pretty hard already, so I may have missed the boat, getting in early on that.

FBR and EDE are in the smaller end of the market with quite large swings in share price, so I would be hesitant to put into this portfolio.

Besides I looked at EDE for example years ago when they were expanding into US road building etc. Things haven't really kicked on and I am glad to have sold out as I would have been really frustrated as a long term hopeful, hoping for the price to recover...

FBR looks interesting as a concept to replace human brickies with robots in the building industry. But commercialisation and revenue generation look like something in the far far distance, if that were to ever happen. At the moment Directors are paying themselves handsomely with salaries and shares but the company is barely making a dime in revenues...


In terms of share prices, there seems to be a general downtrend for service companies to the construction and mining industry. Even the big fellas in this space like good old Leighton Holdings now called Cimic Grp (CIM) and Monadelphous Group Limited (MND) are lagging in the recovery or trending down. So will wait and see before investing in this space.

 

[Dona Ferentes]

Enjoy the sugar rush

Have you looked at FBR and EDE ?
There more of a speculative nature than CSR.
I believe sugar prices are at a world low... ?

CSR Limited (CSR) is engages in manufacture and supply of building products in Australia and New Zealand. In Australia, CSR hold interest in the smelting of aluminium through its 70% interest in Gove Aluminium Finance Limited, which owns 36.05% of the Tomago aluminium smelter located near Newcastle . As well it hold significant industrial property (56 Freehold Sites › 1,438 hectares owned by CSR – includes operating sites) mainly in Western Sydney.

(but no Sugar)

 

[frugal.rock]

Wikipedia
"Founded in Sydney in 1855 as the Colonial Sugar Refining Company, the company expanded into milling cane in Queensland and Fiji from the 1870s. It quickly became the most important miller and refiner in Australasia, with a virtual monopoly on Queensland and Fiji sugar production up to, respectively, 1989 and 1972. It also sold by-products of the sugar industry, from mollasses to ethanol. In 2010, CSR sold its sugar and ethanol business, which had been given the name Sucrogen in 2009, to the Singaporean company Wilmar. As of 2015, the business is known as Wilmar Sugar."

Good one Dona.
I guess this is why I don't buy CSR sugar... The CSR name was always associated with sugar...
All the better for Austrader with sugar on the pile...

 

[Dona Ferentes]

But how about Colonial; how about that for anachronistic non-PCedness? Or, reducing it to a TLA like everything including their name, LoL

 

[aus_trader]

Wikipedia
"Founded in Sydney in 1855 as the Colonial Sugar Refining Company, the company expanded into milling cane in Queensland and Fiji from the 1870s. It quickly became the most important miller and refiner in Australasia, with a virtual monopoly on Queensland and Fiji sugar production up to, respectively, 1989 and 1972. It also sold by-products of the sugar industry, from mollasses to ethanol. In 2010, CSR sold its sugar and ethanol business, which had been given the name Sucrogen in 2009, to the Singaporean company Wilmar. As of 2015, the business is known as Wilmar Sugar."

Good one Dona.
I guess this is why I don't buy CSR sugar... The CSR name was always associated with sugar...
All the better for Austrader with sugar on the pile...

OK, I got the assumption that the sugar business was still owned by CSR wrong. Well that is interesting that the sugar business still uses CSR logo and that got me thinking it was still part of CSR. It means no sugar in the business, it's more leveraged to the building industry.

 

[aus_trader]

CSR Limited (CSR) is engages in manufacture and supply of building products in Australia and New Zealand. In Australia, CSR hold interest in the smelting of aluminium through its 70% interest in Gove Aluminium Finance Limited, which owns 36.05% of the Tomago aluminium smelter located near Newcastle . As well it hold significant industrial property (56 Freehold Sites › 1,438 hectares owned by CSR – includes operating sites) mainly in Western Sydney.

(but no Sugar)

Well done on doing further research on CSR, thanks DF.

Yes you are absolutely right about the Aluminium involvement, in fact CSR saw a big increase in their Aluminium based revenues:

 

[Miner]

Wikipedia
"Founded in Sydney in 1855 as the Colonial Sugar Refining Company, the company expanded into milling cane in Queensland and Fiji from the 1870s. It quickly became the most important miller and refiner in Australasia, with a virtual monopoly on Queensland and Fiji sugar production up to, respectively, 1989 and 1972. It also sold by-products of the sugar industry, from mollasses to ethanol. In 2010, CSR sold its sugar and ethanol business, which had been given the name Sucrogen in 2009, to the Singaporean company Wilmar. As of 2015, the business is known as Wilmar Sugar."

Good one Dona.
I guess this is why I don't buy CSR sugar... The CSR name was always associated with sugar...
All the better for Austrader with sugar on the pile...

Good research and share.

 

[Dona Ferentes]

Well done on doing further research on CSR, thanks DF.

Yes you are absolutely right about the Aluminium involvement, in fact CSR saw a big increase in their Aluminium based revenues:

View attachment 112008

And the land... All they need is a John Elliott to flog everything off. Nice way to boost top line , though, in a quiet year. Bit like SOL/ BKW

 

[aus_trader]

BOQ is underperforming in the Big Bullish day for the banks today...



Haven't had a day for the banks to shine like today for a while, something must be up...

 

[frugal.rock]

Haven't had a day for the banks to shine like today for a while, something must be up...

Just a bleary eyed announcement by the Treasury,
the Honourable Fries n Burger.
The guv has finally realised that the current red tape to get a loan is like plastic handcuffs...

 

[aus_trader]

Just a bleary eyed announcement by the Treasury,
the Honourable Fries n Burger.
The guv has finally realised that the current red tape to get a loan is like plastic handcuffs...

Good analysis FR

I also heard on the news that there is extended support for small businesses that are facing bankruptcy, so that's got to be good for the bank balance sheets in terms of asset write offs.

 

[aus_trader]

I have bought a stock that is at it's historic All-Time-Low's in terms of price, the sort of thing that gets me exited. It's not a penny stock that's hitting the low's because it's running out of cash and may be about to call in the administrative lawyers to 'garage sale' it's assets if there is any. It's a highly profitable dividend paying stock that could be about to get a boost of revenues due to the unique situation we are in. Will write about it over the weekend right here in the spec portfolio thread when I get time, in the mean time here's a sneak preview:

 

[frugal.rock]

What sort of sneak preview is that...
what's the name...ticker
Hurry up, closing soon...

 

[aus_trader]

What sort of sneak preview is that...
what's the name...ticker
Hurry up, closing soon...

Mortgage Choice Limited (MOC), will give details later...