Portfolio, page-98

  1. 231 Posts.
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    As always, thanks for your detailed and informative response. My views


    I rarely hold discretionary retail stocks, the last one i remember was Bonds. Not sure why maybe as i'm not much of a consumer. After living out of a backpack for 12 years it helps not to be materialistic. But i do think MYR is looking interesting lots of cash, does seem to have turned around and i dont think Solly is going to sit around doing nothing forever, even paid a dividend last half. AX1 with Brett Blundy buying and LOV with Brett Blundy holding a large parcel both look interesting. Even HVN with all the property it holds, but you never know when they may buy the next dairy farm.


    Consumer finance - i think MME is interesting growing quickly with what is supposed to be a very good product, lots of insider ownership. I used to own CLH a few years ago and wish i never touched it. CCP is such a better business but still gets hit every cycle and going to/being in the USA worries me. But it is going to be a hard year or so for the consumer.


    Consumer distribution - Even after the fall Intelligent Investor still has BWX as a buy. Never been able to buy DDR after looking at it in the $2 range and just thinking of such low margins. But has done amazingly well and great management.


    Online retail - I think KGN has to be worth something to someone with all the customers they have, look at mydeal and catch. Market cap is only 300m but i couldnt touch it with the present management even though they have done a great job starting it from nothing. CTT just feels wrong to me.


    Agree with SWM at least the balance sheet is a lot better than last cycle.


    Banks - i had hoped to sell some NAB over $32 this financial year but think it will take a while before it gets back to that price. Think IAG is interesting over the short term with quite a bit of pricing power and raising interest rates helps insurers as much as anyone.


    Property sector has been hit hard with the rising interest rate - as discussed on the ENN page i like TGP. Its the only share that i have bought in the last year that is for the longer term. Tony Pitt is a very good operator. Dont have anything against ENN just when I compare the two i prefer TGP. WPR has dropped a lot. I like how they are selling off non core assets and the value of the properties they own will always be worth something being good prime locations. Ditto SCG.


    Recreation and leisure - I hold ATL which hopefully gets taken over and they own a fairly large chunk of CHL. Never understood the appeal of EXP just dont like the assets. SKC is something i hold and nearly topped up a couple of weeks ago. They have been spending lots in CAPEX which is nearly at the end. Would like it more if they could offer Fully Franked Divs. TGP also manages a hotel fund for a large private investor.


    To finish off, I totally agree with you that there is more value in the Tech sector and that they are better businesses, especially the ones with some pricing power. Even some of the loss making ones with lots of cash in the bank and high organic growth. That was one reason why i couldnt buy PYG they had lots of acquisitions. Couldnt believe the takeover premium they received only. I think only 30% of the revenue they received was Saas. Just thought it was a low quality business. PTG definitely seems higher quality, with great management but just dont know about the growth.

 
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