Analysis & Opinion

YOUR PORTFOLIO: Overseas Demand For Coal Stocks To Energise Gains

Investors should always consider the company, sector and global outlook before buying shares. In the case of coal – thermal for generating electricity and metallurgical or coking for steelmaking – the outlook appears relatively bright. According to the Australian Bureau of Agricultural and Resource Economics and Sciences, world thermal coal trade is projected to increase…

Seeking Double Digit Returns From REITS

At face value it’s hard to be bullish about listed property trusts (LPTs) – also known as REITs – within a rising interest rate environment that grants investors relatively risk-free returns of 7 percent-plus on term deposits. With distributions still at the lower end of the range, REITs – expected to deliver an average gross…

Know Your Strength? Relative Strength Index (RSI)

How many indicators does technical analysis have? Simply put, too many indicators to count, and most charting software will give you the option of customizing existing ones or creating your own. However, the situation was different 33 years ago in 1978, when J. Welles Wilder (engineer, turned real estate developer, turned technical analyst) self-published his…

The Construction Sector – A solid long-term pick for growth investors

Recent data indicates that Australian construction activity contracted for the ninth consecutive month in February. Yet the engineering construction subsector, buoyed by an increase in new orders, saw considerable gains and expanded slightly last month. The Australian Industry Group’s Performance Construction Index, released in conjunction with the Housing Industry Association, showed that overall, the construction…

Bear Of The Week – 13th March 2011

Stock: Billabong International Limited Stock code: BBG  Share Price: $8.11 (as at Friday 11th March, 2011) Broker sells:  Lincoln Indicators (28/2/2011, share price was $8.46 that day) Austock (20/12/2010, share price was $8.07 that day) Patersons (15/11/2010, share price was $8.31 that day) Alto Capital (29/11/2010, share price was $8.56 that day) Chart: Share price over…

Stock of the Week – 13th March 2011

Stock: QBE Insurance Group Limited Stock code: QBE  Share Price: $17.17 (as at Friday 11th March, 2011) Broker buys:  Patersons (28/2/2011, share price was $18.14 that day) Shadforths (21/2/2011, share price was $18.90 that day) Broker holds: Alto Capital (7/2/2011, share price was $18.40 that day) Chart: Share price over the year to 11/03/2011 versus ASX200 (XJO)  You…

SECTOR SCAN: Five Consumer Stocks Poised To Grow

The consumer sector consists of more than 200 ASX listed companies that distinguishes them by their offerings. Food and beverage producers and distributors are widely referred to as consumer staples, while general retailers are considered consumer discretionary stocks. Consumer staples are said to be defensive because their earnings tend to hold up much better in…

YOUR PORTFOLIO: Six Stocks To Ride The Iron Ore Boom

Asia’s insatiable appetite for iron ore paints a bright outlook for Australian companies. The Australian Bureau of Agricultural and Resource Economics and Sciences is forecasting Australia’s iron ore exports to increase from 403 million tonnes in 2010 to 425 million tonnes this year and 462 million tonnes next year. ABARES is forecasting increasing exports to…

The Buy and Hold Investing Strategy – Will Rising Oil Prices be the Final Nail in the Coffin?

In January 2008, the price of oil reached the century mark – $100 a barrel – for the first time ever.  By May 2008, American investment banking giant Goldman Sachs was predicting the price of oil would reach $200 a barrel within two years.  It did not. In September 2008, another American investment bank –…

In Search of the Source of All Ratios – Financial Statements

Ratio Analysis is one of the most widely used investment tools all over the globe.  With the exception of the hard-core technical analyst types, most investors rely on financial ratios of all kinds to evaluate shares.  It is the cornerstone of fundamental analysis. Even the most recent newcomers to share market investing quickly discover the…