How negative gearing works
By Jimmy B Prince, author of Tax for Australians for Dummies There are two ways to build wealth and more particularly a share portfolio. You can either wait until you’re saved a sufficient amount or you can borrow. If you decide to adopt the save and wait option, there’s a risk you could miss the…
18 Share Tips – 13 July
Brendan Fogarty, Alto Capital BUY RECOMMENDATIONS Meridian Minerals (MII) The speculative sector is seeing a gradual return in volumes in recent months, with overall risk in the macro-environment reduced to a more tolerant level. Some shrewd juniors have taken the opportunity to acquire reasonable small-to-mid sized resource assets at heavily discounted prices, post the exuberance…
Professional trader reveals system that has worked for 25 years
If you’ve ever entertained the idea of being a full-time trader then you’ve probably spent time looking for the holy grail of trading – the perfect system that will guarantee making big bucks on the market. Well, professional trader Kerry Johnston has, in his own way, found it – although he doesn’t like to call…
What happens if the stock that I have margin lent against falls off the approved list?
Brokers from time-to-time may reduce or remove the Loan to Value Ratio (LVR) on particular stocks. If this does occur to you and your Loan to Security Ratio (LSR) increases to a level higher than your margin call LSR, then a margin call will trigger and you will required to reduce your gearing level by…
Self-managed super funds and tax exemptions on pension assets
I am over 70, but my wife is only 62 and we are both retired. We have a SMSF that commenced in 2005 from which we both draw a pension. Each year I have donated funds to my wife’s super in order to claim the Co-contribution. Apparently this means that the SMSF is in both…
What is the difference between American and European style warrants?
When we talk about the “style” of a warrant we are referring to when the warrant can be exercised. Equity Warrants are very similar to equity options. Much like equity options, warrants can be either call warrants or put warrants. A call warrant gives the holder the right to buy the underlying security at some…
What happens if your CFD stock gets suspended from trading or worse, goes under?
What happens to your CFD trade if the stock that you’ve gone long or short gets suspended from trading or worse, goes under? In the Australian Securities Exchange (ASX), listed companies can either voluntarily or be ordered by the exchange, to have their securities placed in to a status where trading is restricted. This status…
Aussies ‘don’t understand their super’
It’s the average Australian’s second biggest investment, behind the family home, yet new research shows many Australians don’t understand their superannuation. Research by insurer Suncorp has found only four out of 10 people claimed to understand their superannuation statement. Vicki Doyle, executive general manager for superannuation and investments for Suncorp, said nearly half of the…
Price-to-Book Ratio
A handy measure used to assess whether a company’s share price is justified or not is the Price-To-Book Ratio (P/B ratio). The P/B ratio is calculated by dividing the closing price of the stock by the company’s latest book value per share (from its quarterly or annual statements). Many of you would be familiar with…
A simple method for finding dirt-cheap stocks
We often want to buy a stock on the cheap – and to do this we need to find how much the company’s shares should be worth. But how do you know if the current share price is too high or too low? There are many valuation methods around that attempt to calculate the ‘true’…
