Friday, October 26, 2012

TIPS - Dividend above 6.5, PE above 9

From the recent Motley Fool newsletter, which had a big tease about one stock with Dividend Yield (Grossed up) to be 6.5% and P/E forward looking as above 9.0, we can use a search of the ASX 300 shares to see which stocks fit this category.

VectorVest is used to filter the selection of stocks and the results are given below. The dividend used in the search is the actual dividend received by investors which is 70% of the grossed up value. The other criteria include:
Growth Rate > 10%
Recommedation = Buy

So the group of five stocks may contain the one Motley Fool was referring too - but even if it does not, then the list below still represent a good selection of strong stocks both technically and fundamentally.

Note: The VST is the VectorVest number and anything higher than 1.0 is good. It is made from the three components of RV, RS, RT indicating relative value, safety and timing respectively.


Company Symbol Price $ Change DY RV RS RT VST Sector GRT EPS
Mirvac Grp MGR.AX 1.545 0.02 5.18 1.42 1.23 1.36 1.34 Financials 17 0.11
ALS Ltd ALQ.AX 9.8 -0.05 4.59 1.49 1.05 1.335 1.3 Industrials 24 0.8
Investa Office Fund IOF.AX 3.03 0.06 5.28 1.34 1.16 1.21 1.23 Financials 15 0.23
M2 Telecom GP MTU.AX 3.77 0.01 4.77 1.34 0.99 1.22 1.19 Telecommunication Svcs 15 0.31
Westfield Retail Trust WRT.AX 3.13 0.08 5.43 1.21 0.97 1.26 1.16 Financials 11 0.3

Thursday, October 18, 2012

TIP - Making New Highs


The following have been identified as making new highs. These are not penny dreadfuls stocks. Apart from their technical trends, they also enjoy relatively good earnings (EPS) and growth. Feel free to do your own research on these stocks.

WHF - Whitefield
AHE - Automotive Holdings
AAX - Auscenco
LLC - LendLease Corp

Tuesday, October 9, 2012

Valuation of Micro Caps, Small Caps Stocks

Some things to consider to filter out the good small caps or micro caps stocks.


1. Proven management team. Look for leaders with track record in other companies


2. Strong industry dynamics. Look for competitors, barriers of entry, power of suppliers.


3. Funds for key milestones. It is ok to dilute shares for startups - it is better that they get more funding when they need it to develop the product, rather than go bankrupt.

4. Strong news flow pipelines 


5. Management incentives. Look for rewards in form of stocks or options for management.