-
Location Lie
“The past 12 months has seen huge growth in Sydney’s western suburbs, with the top five local government areas for growth Concord (nearly 26 percent), Camden (23 percent), Fairfield (nearly 21 percent), Blacktown (20 percent) and Burwood (nearly 20 percent).” A Current Affair story. So is location^3 a lie? Well, mostly yes. Every suburb has…
-
Another bubble measure
Negative gearing has a lot to answer for. I was sent an article with this quote buried deep in it. “If you desire to identify potentially overpriced markets, compare the monthly cost of owning a given home to the monthly cost of renting that same home. After factoring in taxes, if owning costs significantly more…
-
Meaning of Median
In Housing Boom I touched on a price-to-income measure for the state of the housing boom. For those who missed it, I simply questioned the disconnect between property prices and household wages. There is a flaw in my logic. Median priced homes are not bought by median income earners in every suburb. In Sydney’s eastern…
-
NCP Commentary
I did have a sell order in for my remaining NCP @ 10.46 but I cancelled it. If I’m betting the market will consolidate over the next few days, then NCP should follow. I could sell as insurance but given how long I’ve gone on BHP it doesn’t really make sense. NCP spent most of…
-
Buy 1831 CSR @ 5.46
This is not strictly a trading position. But If it jumps I’ll take it. Given the perilous state of the stock market I’ve been keeping an eye out for value stocks that pay consistent dividends, represent a discount to NTA and have good businesses. CSR was one of the ones on the list and is…
-
Buy 5000 BHP @ 9.95
Andy, my full service broker called me today. There must be something about having an unused margin facility that makes these guys nervous ;). Anyhow he gave good spiel so I thought I’d give it a go. Andy’s 5 good reasons to buy BHP under $10.00 Market should be up – Microsoft released a ripper…
-
Sell 6298 ALZ @ 1.35
I love it when a plan comes together. 😀 ALZ may well move back up over 1.40 and I’ve left money on the table. But nobody ever went broke taking a profit. This may well be the bottom of the market but I don’t think so. The Dow and NASDAQ both ended down overnight. The…
-
Housing Boom
I don’t know what the immediate future of the Sydney (and other Oz capitals) property market is. Will it continue to boom? Historically low interest rates, poor stock market performance and the need to increase suburban densities suggest business as usual. Superannuation and commercial/industrial property funds are adding asset allocation pressure as well. The counter…
-
Buy 6298 ALZ @ 1.31
ALZ has come off 15 cents (10.27%) over the last month. There has been some negative research on it. However they pay nice quarterly dividends, so holding at this point is ok if this trade doesn’t go anywhere. ALZ hasn’t announced the next quarterly dividend yet. My sell point is 1.35 for a 3% gain.…
-
Avoiding mistakes?
I suffer from analysis paralysis — a delusion that if I get enough data and study it enough, I can remove risk from an investment. To deal with this shortcoming I talk to myself. More than normal ;). I remind myself that Mark Twain has an answer for every occasion. In this instance he said…