Virtually Live
Markets
Australia

Virtually Live: 2nd July

2 Jul 2020
By
In this episode of Virtually Live, Local Investment Director Shannon Rivkin provides an update on the current market conditions. He also discusses Opticomm (OPC) as well as RMP Global (RUL). 

In this week’s show

  • 0:36 – Market update
  • 2:51 – Q1: Could you please provide commentary on Opticomm (OPC)?
  • 6:08 – Q2: Could you please have a look into RMP Global (RUL) and give your thoughts please?

 

Listen to the audio version

 

New Educational Videos

Members should also watch out for the first of a new series of educational videos that Rivkin plans on producing. These videos will be 3 to-6 minutes in length. We don’t want to inundate members with emails, so you can opt in to receive emails when they are released or you can simply see them on the website. The first one is discussing the opening and closing rotations on the ASX and can be found through HERE.

Rivkin does not take into account your or anyone else’s personal situation in their market and stock commentary.  Please keep keep this in mind when you are taking buy and sell decisions about any of these stocks that is mentioned in our Virtually Lives.

Video Transcript (click anywhere to play)

Rivkin does not ever provide financial advice. Please consider your own circumstances before purchasing any of our products or acting on our general advice, for any Rivkin product or recommendation.

SHOW COMMENTS / QUESTIONS (130)

130
Comments

You need to be a Strategies user to comment on this post. Click here and become premium now!

Graeme S.

Hi Shannon,
Every time I buy shares I receive paperwork in the snail mail asking me to update communication preferences, provide TFN, check bank account details etc. I find this a waste of paper & a security issue. After these are received I can request all subsequent correspondence to be provided electronically, but is there a way to avoid the initial paper deluge? Thanks. Graeme

Daryl L.

Hi Shannon
I hold APT both inside and outside of Momentum and I’m thinking, given the hard run since Mar 18 when it was $13.31, perhaps it’s time to take 25-30% of the holding off the table for a month or so and just see what develops. I could always buy back in then or sell some more. Your thoughts please would be much appreciated. It just seems a prudent strategy to me. Keep up the great work. Thanks Daryl Greenvale Vic.

Anonymous User

Hi Team,
Can you please give more information on how the Stanmore coal situation may play out ?
Is the company likely to come back after six months with the same $1.00 per share offer or better ?
What if i were to be stuck holding this stock long term, are they likely to pay dividends etc.
I’d like to know the risk / reward if i were to pick up small parcels around the current 70 cent mark.
Surely at some point this stock is a buy ?
Your comments would be much appreciated.
Regards,
Simon.

David W.

Could you please provide commentary on OPC. Share price has fallen since purchasing at $5.30 per recommendation. What is worst downside- I felt recommendation was a bit confusing With wording re this. Is stock at $5.10 even more compelling buy….or has something changed?

Brian F.

When do we expect to hear something from Pioneer Credit? It’s been in a trading halt for nearly three weeks.

Robyn K.

Hello Team
could you please comment on ORA and the special dividend of 37.3 c/share , and the capital return of 12 cents per share. I am not sure how the consolidation of shares from 5 shares to 4 shares to pay the capital return will be organised, no date was set for the consolidation and no strategy was outlined as to how the consolidated shares would be valued. Thanks
Robyn

Juliana Castaneda

Hi Robyn,

Your question has been added to our next virtually live, which will be available on Thursday the 25th of June after 5 pm.

Thanks!

Graeme S.

Hi Shannon,
If PNC resumes trading before EOFY, what will be the pros & cons of selling to crystallise a capital loss for this tax year to offset against other gains? PNC shares are held in our SMSF, I am in pension phase (pre 60) whilst my wife is still in accumulation phase.
Thanks. Graeme

Juliana Castaneda

Hi Graeme,

Your question has been added to our next virtually live, which will be available on Thursday the 25th of June after 5 pm.

Thanks!

Michael B.

hi shannon would appreciate your view on the latest isx isignthis vote to delist and change to another exchange regards michael

Juliana Castaneda

Hi Michael,

Your question has been added to our next virtually live, which will be available on Thursday the 25th of June after 5 pm.

Thanks!

Brian F.

Hi Shannon,
Not sure if this is in scope for your virtually live, but would be interested if you have a view about the article published in the atlantic by Frank Partnoy.
https://www.theatlantic.com/magazine/archive/2020/07/coronavirus-banks-collapse/612247/
Regards
Brian

Graham B.

Hi Shannon,
Could you please comment on AT1 Atomo Diagnostics Limited as either a short term hold or long term growth story.

Thanks.

Juliana Castaneda

Hi Graham,

Your question has been added to our next virtually live, which will be available on Thursday the 11th of June after 5 pm.

Thanks!

David F.

Has the US market got further to fall.

Juliana Castaneda

Hi David,

Your question has been added to our next virtually live, which will be available on Thursday the 04th of June after 5 pm.

Thanks!

Qinghui L.

Hi Shannon, CSL lost 10% in the last three days with large volumes (almost 5 times the average today). Are there anything fishy about CSL behind such weakness? Thanks.

Juliana Castaneda

Hi Qinghui,

Your question has been added to our next virtually live, which will be available on Thursday the 04th of June after 5 pm.

Thanks!

Daryl L.

Hi Shannon
Further to last weeks positive comments about Sydney Airport, will they be the owner operator of Badgerys Creek? Keep up the great work.
Daryl Vic

Juliana Castaneda

Hi Daryl,

Your question has been added to our next virtually live, which will be available on Thursday the 04th of June after 5 pm.

Thanks!

John W.

Two questions, the first being, before today’s price fall I was questioning myself as to whether APT can sustain the lofty price rises it has attained recently. Should one hold or sell & come back in at a lower price. The second; on Wednesday I noticed that NAB was upgraded from neutral to a buy from a company. This coincided with a considerable price rise in all of the banks & again today. Would this have anything to do with the forthcoming SPP placement so large companies can sell down at a larger profit if they choose? Can they manipulate… Read more »

Juliana Castaneda

Hi John,

Your question has been added to our next virtually live, which will be available on Thursday the 04th of June after 5 pm.

Thanks!

Geoffrey I.

Hi Team,
I am fairly new to trading shares and get a little put off when looing up a company to buy and seeing the morning star ratings stating OVER PEICED. For example Appen APX is over rated 20%. What does this really mean? Should I still buy over priced stocks? Regards Geoff, Nairobi Kenya.

Juliana Castaneda

Hi Geoffrey,

Your question has been added to our next virtually live, which will be available on Thursday the 04th of June after 5 pm.

Thanks!

David J.

Hi Shannon
Appen limited APX recently restated its profit guidance for 2020 at EBITDA $125 to $130m. Do you see AI playing an even bigger part in our day to day lives post covid-19

Juliana Castaneda

Hi David,

Your question has been added to our next virtually live, which will be available on Thursday the 04th of June after 5 pm.

Thanks!

Anthony D.

Hi Team, please comment on the current non-binding offer to acquire Village Roadshow. Thanks.

Juliana Castaneda

Hi Anthony,

Your question has been added to our next virtually live, which will be available on Thursday the 28th of May after 5 pm.

Thanks!

Thomas M.

Please comment on what is happening with Isignthis (ISX).

Juliana Castaneda

Hi Thomas,

Your question has been added to our next virtually live, which will be available on Thursday the 28th of May after 5 pm.

Thanks!

Graham B.

Hi Shannon, As a very long term subscriber I recall just after Sept 11 Rene said that you either believe the World will ultimately win against terrorism and therefore stocks would recover or that a bunch of terrorists would win and we should run for the exits. On that basis many of us did as he suggested, blocked out the “noise”, looked for bargains and did very well! All these years later and using similar logic are stocks such as SYD – Sydney Airport , Flight Centre – FLT and Webjet – WEB so beaten up that they should now… Read more »

Juliana Castaneda

Hi Graham,

Your question has been added to our next virtually live, which will be available on Thursday the 28th of May after 5 pm.

Thanks!

Rafael A.

Hi Shannon, please provide your view on IDP Education.
Thanks
R

Juliana Castaneda

Hi Rafael,

Your question has been added to our next virtually live, which will be available on Thursday the 28th of May after 5 pm.

Thanks!

Robert S.

ROB QLD
looking for a speci to add to the portfolio and thought BLU may have some promise being in gas and hydrogen and under valued greatly at the present time. Your thoughts please.

Juliana Castaneda

Hi Robert,

Your question has been added to our next virtually live, which will be available on Thursday the 28th of May after 5 pm.

Thanks!

David J.

Hi team,
What are your thoughts on Smartgroup Corporation Litd SIQ

Juliana Castaneda

Hi David,

Your question has been added to our next virtually live, which will be available on Thursday the 28th of May after 5 pm.

Thanks!

Graeme S.

Hi team. If the current rally fails & equity markets take another significant leg down, are hybrid prices expected to be as badly affected as during the initial sell-off? Thanks

Juliana Castaneda

Hi Graeme,
Your question has been added to our next virtually live, which will be available on Thursday the 21st of May after 5 pm.
Thanks!

Terry W.

Hi Team
Recent Special Dividends such as found in Zenith Scheme of Arrangement and one off as in Salmat. Are these subject to the 45 day rule for frsnking credits ?

Juliana Castaneda

Hi Terry,
Your question has been added to our next virtually live, which will be available on Thursday the 21st of May after 5 pm.
Thanks!

Campbell G.

Hi Team, Could you please comment on SPT – Splitit Payments.
Thanks!

Juliana Castaneda

Hi Campbell,
Your question has been added to our next virtually live, which will be available on Thursday the 21st of May after 5 pm.
Thanks!

Bruce G.

Hi Guys Great show. Love the transcript. Could you please comment on the Macquarie Capital Notes 2. Will they be worth inclusion in the income portfolio, if there was spare capital? Bruce from NSW

Juliana Castaneda

Hi Bruce,
Your question has been added to our next virtually live, which will be available on Thursday the 14th of May after 5 pm.
Thanks!

David F.

Hi Great show. Could you please comment on mesoblast and its growth prospects. Thanks David from Logan.

Juliana Castaneda

Hi David,
Your question has been added to our next virtually live, which will be available on Thursday the 14th of May after 5 pm.
Thanks!

Carol B.

Hi Team

Shannon made some general comments today about the plethora of SPPs offers but I wonder if he could comment directly on the offers from LendLease and Ingenia, mainly his thoughts on the longer term outlook for these companies. Thanks

Carol

Juliana Castaneda

Hi Carol,
Your question has been added to our next virtually live, which will be available on Thursday the 14th of May after 5 pm.
Thanks!

Daryl L.

Hi Team
Just wondering if there’s an explanation for the surge in Afterpays price from $13 in mid Mar to $36 this week.
Thanks
Daryl Vic

Juliana Castaneda

Hi Daryl,
Your question has been added to our next virtually live, which will be available on Thursday the 7th of May after 5 pm.
Thanks!

Daryl L.

Hi Team
Thanks for your efforts under lockdown, could we have your view on the Qube 1 for 6.35 non-renounceable share offer at $1.95 please. With trading currently suspended and the last close $2.21, it appears on face value, a good offer.
Thanks
Daryl Vic

Juliana Castaneda

Hi Daryl,
Your question has been added to our next virtually live, which will be available on Thursday the 7th of May after 5 pm.
Thanks!

Daryl L.

Hi Team
Just wondering if the people cashing in their super to support themselves will likely have an adverse short term effect on the market?
Thanks
Daryl Vic

Juliana Castaneda

Hi Daryl,
Your question has been added to our next virtually live, which will be available on Thursday the 30th of April after 5 pm.
Thanks!

Graeme S.

SMR Hi. I placed an order (GTC) for SMR at 0.99 on 2 Apr then amended to 1.00 on 17 Apr. Order was not filled, then “purged by exchange” on 27 Apr. Can you explain why the order was purged? Assuming it was related to the Bonus Issue, could you please provide advice in similar situations in future – i.e. warn that the order will be purged & advise whether or not the order should be placed again and at what price? After some research it seems that the SMR ex-bonus date has passed. Is the current advice still to… Read more »

Juliana Castaneda

Hi Graeme,
Your question has been added to our next virtually live, which will be available on Thursday the 30th of April after 5 pm.
Thanks!

Daniel P.

Hi, thoughts on tracrs, are they a way to buy overseas shares? what are the pros and cons? is see large spreads and not sure of the fees involved? also chi -x, how does it work and what are the benefits of chi-x to ASX. https://www.tracrs.com.au/

Juliana Castaneda

Hi Daniel,
Your question has been added to our next virtually live, which will be available on Thursday the 30th of April after 5 pm.
Thanks!

Daniel P.

Salmat (SLM) owned the largest letterbox distribution business in Australia and recently sold it to IVE Group (IGL) for $25m while they’ve also sold their MicroSourcing business for $100m with the company now looking to return funds to shareholders. They have a market capitalisation of $152m at 76.5c, they receive cash of approx. ~$125m subject to some settlement balancing and it looks like they had cash and equivalents of around $45m beforehand, so you’re right, SLM is a cash box and is looking to return funds to shareholders. From a quick ‘back of the envelope’ calculation, the business could be… Read more »

Juliana Castaneda

Hi Daniel,
Your question has been added to our next virtually live, which will be available on Thursday the 30th of April after 5 pm.
Thanks!

Daniel P.

Shannon sent an email to [email protected], done a bit of reasearch made a few calls, got some information to the oil etf which may clarify some of you virtually live comments today. Hope it is useful.

James Y.

Ramsay health Care is offering both an Institutional Placement and a share purchase plan at a price of A$56.00 per New Share (“Placement Price”)
which represents a 12.9% discount to the last closing price of A$64.29 on 21 April . RHC resumed trading today and is trading in the range Open$62.490High$62.740 low$58.82
how are these discounts calculated?
What is the extent of the dilution?
Is it worth subscribing to SPP?
Is it worth buying more RHC below $60
Thanks again for your worthwhile analyses.
james

Daniel P.

I sold my $4k of rhc today at $60.85, I will wait until the last day and based on the price will buy. The amount depends on the discount. Recent raisings not holding up as well as those early deep ones – as expected given the timing and nature. Easy money not so easy anymore

Daniel P.

I’m interesting in buying oil as a long term play. I see the only way is via ASX code: ooo. However, I don’t really understand this product that well, and I’m worried that by its nature it could go bust. Is that possible? any chance you can explain this product? I note the outcome of an investment will be determined by: Spot oil price movement (negative or positive) Roll cost/benefit from rolling the futures contracts (negative or positive) Interest income Can you explain the relationship of the spot oil price and roll of future contracts? I see this company as… Read more »

Ignacio Larralde

Hi Daniel,
We will address your questions in the next Virtually Live edition.
Cheers,

Daniel P.

ASX: MEQ – can you please discuss what is happening with this SIA and the background, its very unclear from reading the announcement. I find it hard to know if the $7 offer was via cash or script or both. Looks Like another Material adverse clause issue. Is there a potential opportunity here for us? why is the stock not trading?

Gregory Phillip M.

Hi Team. I saw the comments about CWNHB interest payments. Would the same conditions apply to the other Notes held in the income strategy? Do all the companies have to eventually catch up missed interest payments or are some able to suspend interest payments (after suspending dividend payments) and then restart interest payments once dividends are reinstated, without having to make up for interest payments missed?

Ignacio Larralde

Hi Gregory,
We will address your question in the next Virtually Live edition.
Cheers,

Graeme S.

No sound – after the intro music, just silence!

Ignacio Larralde

Hi Grame, thanks. We already fixed it. Regards,

Daryl L.

Hi Team,
There has been significant discussion and criticism of LICs recently. Is that criticism fair of the Argo, Australian Foundations, BKI Investments and Miltons when compared to the multitude of other LICs where establishment fees and kickbacks are prolific.
Thanks
Daryl – Greenvale Vic

Keith E.

Question on Stanmore Coal. If Golden Investments want to own the whole company, why don’t they just buy the shares on the ASX or is there a maximum they can acquire by this method?

Keith E.

A slightly different type of question that I would value your opinion on. There was a very interesting and, not a little bit troubling, article by Terry McCrann in last weekend’s Australian on the subject of Share Placements and the tendency for companies to offer heavily discounted share purchases to the big institutional investors but not to smaller retail investors like us. McCrann was very critical of the ASX and ASIC for allowing this to happen. So my question is in a number a parts: 1. Do you agree this is a significant problem? 2. If so, should we be… Read more »

Daniel P.

Thoughts on buying SMR, at 99 cents, looks like we can hold until mid May for a higher offer then sell at a $1, worst case scenario is 1% profit less brokerage with the free option of a higher bidder?

Shannon Rivkin

Hi Daniel,

Thanks for your question and it is timely as we have released a buy recommendation on the stock. You have read the situation as I have, so it looks a good buy at anything under $1.00.

Regards,
Shannon Rivkin

Daniel P.

Hi Shannon, any updates on the Bonus share issue and impact under section 2.9 of the agreement is this looks to me a potential for the bidder to walk about and increases our downside risk from zero as its effectively increasing the buy price by 3%. The current environment is definitely teaching me a few things about the importance of reading the terms and conditions,

John G.

Hi Team, I have noticed MHH is continuously selling under its intrinsic value and management is conducting a buyback. There is around 8 to 15 cents difference. Who gets the benefit of this profit, the shareholders or management?

Daniel P.

Hi there, can we please add a question for Thursday, can you help me understand when I can by a stock before it goes ex entitlement. For example, if we look at Katmandu, its in a trading halt and starts trading Thursday, therefore in this example I do not believe you can buy and be eligible for the entitlement. Seeing if any opportunities may present themselves if an SPP presents itself in the future or a rights issue with the option to apply for more then your entitlement. Therefore important to know the timeline and timing of purchases

Paul L.

Hi Team, What are your thoughts on Nufarm Notes – NFNG
Thanks
Paul

Bruce G.

Hi Team, This was part of the announcement on mon 23/3/20 by National Australia Bank Limited (NAB). NAB has today successfully completed the resale of all NAB Capital Notes (NABPC) issued by NAB on 23 March 2015 (the NCN) to the NCN nominated purchaser in accordance with the resale notice issued by NAB on 17 February 2020 (Resale). Payments of $100 cash per NCN were made. Unfortunately earlier in the day there was a confusing announcement by NAB which did not lead investors to believe full face value was being paid. My question is how fast are the hybrids we… Read more »

Daryl L.

Hi Team

Just wondering your thoughts long term on Qube (QUB). At $2.17 it’s $1 off it’s highs and seems sound, ignoring current Covid19 impacts.

Thanks
Daryl, Greenvale

Monika & Wayne S.

Hi Team, what are your thoughts on the restructure of PMV, Soloman Lew has long been one of the business leaders who is generally in front of the pack. Do you think PMV is a good buy in the current environment for a long term hold.

We are glad you liked it

For your convenience, this will appear under your Saved articles in the top menu.