Portfolio
Age variations make planning tricky
With considerations such as super from various sources, non-super investments and possible Centrelink entitlements, effective retirement income planning can be a complicated exercise, especially where there is a big age gap between a couple.
Beware a hard landing in China
Baker | The only shining light for investors over the past few years has been the resources boom. But lately the news out of China has not been good.
Paladin Energy (PDN)
Macquarie Group has cut its price target on Paladin Energy to $1.30 from $1.50 a share and reiterates its “underperform” recommendation on the stock following industrial action at its Kayelekera project in Malawi. Workers on the site are demanding a 66 per cent immediate wage increase and for their pay to be pegged to the US dollar after the government devalued the Malawian currency by 50 per cent.
DuluxGroup (DLX)
Citigroup has upped its price target on DuluxGroup to $2.91 from $2.84 a share after the company posted a pleasing half-year result but kept its “neutral” rating as it believes the stock is trading at fair value. The broker noted that DuluxGroup’s result highlighted its relatively limited exposure to the weak new residential housing market, its strong premium-brand portfolio and solid management with operations recovering from the Queensland floods.
Mirabela Nickel (MBN)
Morningstar has upgraded Mirabela Nickel to “buy” from “accumulate” following the stock’s underperformance due to the fall in the nickel price and the miner’s stretched balance sheet. The stock has been very volatile in recent months as nickel prices tumbled below $US8 a pound, raising speculation that the company will run into funding issues.
Questions cloud Billabong’s outlook
With no operational update at last week’s surprise announcement that Launa Inman has replaced Derek O’Neill as Billabong International head, questions remain.
Yield puts industrials to work
The sharp drop in government bond yields is drawing the spotlight on stocks that offer a generous dividend payment.
Minnows show trends
The smallest stocks in the index are a good emasure of how bullish investors are. They are often mooted as the next best place for investors to find bumper returns but can be volatile as they tend to outperform when the market rises and fall further when the market takes a dive.
Rate cut could be trigger
With so much uncertainty surrounding Europe and in particular question marks over the Greek government, volatility in sharemarkets is likely to continue in the near term. But the recent rate cut by the Reserve Bank of Australia could be a trigger for the domestic cyclicals.
Clever collecting puts you in the frame
Strong gains are to be had from investing in art, but it’s much more speculative than many would have you believe. You need to keep your eyes and ears wide open, and do your research
Seed capital, a home-grown approach
Back home in Tasmania after 20 years at Harvard University, Professor Jonathan West admits to being one of many Australian farmers who would never sell the family farm.
Bonds are making stocks look good
“The one thing in favour of equities is that bonds truly suck,” says James Montier, who helps manage GMO’s asset allocation strategy.
Get ready to gear up for extra profit
As interest rates fall, the appetite for gearing is growing, but investors need to know what they are doing.
Small caps good value
The forward P/E multiple for the top 50 companies is about 15, while the small ords P/E is closer to 12.
Not so cheap close up
The forward price-earnings ratio of the local sharemarket is about 11.5 times, well below the historical average since 1990 of around 14. Does that make stocks cheap? Maybe not.
Miners alert but not alarmed
The risk to resource juniors from the growing threat of nationalisation in South America is not as great as might be expected.
When a stronger investment motive is needed
Many people - including about 900,000 who have do-it-yourself super funds - enter retirement with an accumulation of savings and investment arrangements to provide them with an income.
If yields hit bottom, only way is up
Baker | Bond investors, be careful. It’s a tricky time for the defensive asset class, with many favouring the income stream they generate over the wild ride in sharemarkets.
Emeco Holdings (EHL)
Morningstar has changed its recommendation on Emeco Holdings to “buy” from “accumulate” after the company’s share price fell below $1.00. Recent worries that the heavy earth-moving equipment supplier would miss 2011-12 consensus expectations have weighed on the stock. Emeco holds leading positions in equipment rental markets in Australia and Indonesia with the mining sector a key focus.
Orica (ORI)
Deutsche Bank has retained its “buy” recommendation on Orica and raised its price target by 3 per cent to $30.50, following the chemical company’s first-half net profit result yesterday, which came in 8 per cent ahead of expectations. The company reported that full-year guidance was maintained and also highlighted the strength in explosives demand across key regions. Its Minova manufacturing business showed some improvement and it was the first result under the new chief executive Ian Kingsley Smith.
Wesfarmers (WES)
Deutsche Bank has maintained its “hold” rating on Wesfarmers, with a price target of $28, after taking a closer look at the company’s revamped Flybuys programme, which is aimed at attracting and retaining more customers to the Coles brand.The broker expects continued benefits to stem from a turnaround in Coles but it believes any upside from this is already factored into the company’s share price.
Age-old super poser headed for too-hard basket
Hot on the heels of the halving of the superannuation contributions tax concession for high income earners is speculation that another change in next week’s federal budget will be the government stepping away from its promise to allow a higher than $25,000 contribution cap for those over 50.
Bonds deliver best returns amid fresh anxiety
For the first time since the start of 2008, bonds were the only investments to provide positive returns amid renewed concern the global economy is slowing and as widening deficits in Europe threaten contagion.
Bonds no longer the bridesmaid
Bonds have beaten shares for 25 years, not that it’s something fund managers or brokers highlight. The asset class should be viewed as more than just insurance for a portfolio.
Fixed securities require timely decisions
Baker | Half the girls born today will live beyond 95 – highlighting the challenges for people retiring at 65 who may have to fund 30 years of retirement.
Record fiscal drag talks to more rate cuts
It seems the handouts from the Rudd government during the global financial crisis are now just a distant memory. Fiscal policy is now contracting.
Adjusting for longevity
The Actuaries Institute says improvements in life expectancy present major risks to the future of super funds, investment managers, insurers and other financial product providers.
No rates respite for emerging companies
There is unlikely to be a let up in the pace of profit warnings in the small cap space over the next two weeks, despite Tuesday’s generous interest rate cut, as companies get a chance to reflect on how the last quarter of the financial year is shaping up.
Super needs to take the next step
Superannuation funds must do more to prepare their members for the challenges they will meet in retirement
CSL (CSL)
Deutsche Bank has cut its advice on CSL to “hold” from “buy”, saying the potential near-term positives are reflected in the share price following recent gains.
