In the Media

While some analysts say bank stocks appear to be fully priced, fund manager Wealth Within expects their share prices will keep rising. “We still see buoyancy in this sector with money still flowing into the sharemarket and it usually goes to the biggest stocks which are often the banks,’’ Wealth Within analyst Janine Cox says. “This will also likely have a flow on to others, such as Suncorp and IAG, as prices drift higher across the financials.” Mining stocks, too, are still popular among Australian investors, but that goodwill will need to be supported with some good news, Ms Cox says. “This includes stocks like BHP and Rio...

The failure of boards to report information to the market at the time it was known has seen a significant rise in the number of class actions launched against listed Australian companies. This lack of public disclosure has left shareholders out of pocket and wanting to take on companies in the courts. Sadly, some shareholders are not aware of the opportunity to be a part of the legal action to get their money back...

Owning property requires limited knowledge and gives you capital growth and income over the long term, which is essential for any good investment strategy. However, the barriers to entry, and the reason for the lack of diversification into property is generally due to the large sum we require upfront and purchase costs. Quality blue chip shares, unlike property, are a highly liquid asset that also provides good capital growth and income. However they do require a little more knowledge, depending on your risk level. 

Janine Cox, senior analyst at Wealth Within, told SmartCompany Bellamy’s strong debut is a “great result for the people who have invested in the stock and the company”. But Cox says it’s important to “factor in we’re in a bull market” and that can influence whether or not a stock exceeds expectation. Cox says Bellamy’s debut also highlights the importance of timing for companies preparing to float, and believes the company gained popularity because it “offers something a bit different”. Cox says the real test for Bellamy’s will be the in the three to 12 months after listing, as more information becomes publicly available about the company.

Although winners such as Freelancer, Sealink Travel and Veda hit the headlines, only about half of all new floats go on to make money says Wealth Within chief analyst, Dale Gillham. "Waiting to see how they go in the market can save you time and money, and lower your risk," he says. "If you’re determined to buy into a float then consider investing half in the float and half six to 12 months later."  The other problem is you have nothing but management’sword for what’s in the prospectus...