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Australia

Virtually Live: 21st January 2021

21 Jan 2021
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During this episode of Virtually Live, Shannon provides insight into Frontier Digital Ventures (FDV), Aussie Broadband (ABB), Omni Bridgeway Ltd (OBL), 360 Capital Group (TGP), Gentrack Group (GTK), Wisetech Global (WTC), the Bingo takeover by private equity CPE Capital as well as some commentary on the resources sector.

In this week’s show

  • 0:19 – US politics update
  • 1:31 – Q1:  Can I have your thoughts on Frontier Digital Ventures (FDV)?
  • 3:24 – Q2: Can I have your thoughts on Aussie Broadband (ABB)?
  • 5:19 – Q3: Can I have your thoughts on Omni Bridgeway Ltd (OBL)?
  • 6:48 – Q4: Can I have your thoughts on 360 Capital Group (TGP)?
  • 9:01 – Q5: Can I have your thoughts on Gentrack Group (GTK)?
  • 11:49 – Q6: Happy New Year – just wondering the Teams’ current view on Wisetech Global (WTC), please?
  • 14:02 – Q7: Do you expect the resource sector stocks to do a bit of capital management in light of the recent iron ore prices?
  • 15:56 – Q8: Just wondering your view on the Bingo takeover by private equity CPE Capital, please?

 

Listen to the audio version

 

New Educational Videos

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Video Transcript (click anywhere to play)

SHOW COMMENTS / QUESTIONS (216)

216
Comments

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Daryl L.

Hi Team
Just wondering your view on the Bingo takeover by private equity CPE Capital please?
Thanks
Daryl-Greenvale Vic

Mervyn Y.

Hi Shannon.
If the WAM offer equates to $0.86 per share against the current AYS price of $0.74, the discount seems quite large compared to the risk/reward… is there any reason why AYS isn’t trading closer to $0.86?
Thank you.

Daryl L.

Hi Shannon
Happy New Year, just wondering the Teams current view on WTC-Wisetech Global please?
Much appreciated
Daryl

Danny J.

G’day Shannon,
Given recent commentary on FMG, BHP, RIO and the resources sector in general and in light of the Iron ore price over recent months do you expect these companies to do a bit of capital management following half year results by way of special dividends, share buy backs etc. FMG in particular must be sitting on a huge mountain of cash. Any thoughts
Regards
Danny

Ian G.

Hi Shannon
During this period I have had lots of time to do research and one term that is being used a lot by analysts in discussions is “rotation stocks”. Are you able to give a layman’s description of what this means in terms of the market.
Cheers Ian

James Y.

What can be done when loyal shareholders are not offered the opportunity to purchase additional shares when their holding has been diluted by a company placement to institutional and other investors? Shannon has made members aware of this issue in the past. I have written to Mr Subhash Challa Chairman and Managing Director, SenSen Networks Limited SNS as follows. The questions I have raised are at the end of this letter Dear Mr Challa, On 6 January SenSen announced that it had raised $7.15 million through the issue of 57,200,000 shares at $0.125 per share (Placement) to institutional and sophisticated… Read more »

James Y.

Post Scriptum
Post scriptum
Dear Mr Challa,
I regard SenSen networks as a reputable company and I look forward to your consideration of my requests.
Yours sincerely,
James Y

James Y.

Mr Subhash Challa rang me at home today Sunday and provided me with a full explanation.
I’m impressed!

Shane D.

Hi Shannon, can you comment of Carnarvon (CVN) Petroleum transiting from an exploration company to a production company. CVN hold several permits off the north west shelf W/A, recently CVN entered into an equity agreement with Advance Energy enabling CVN to progress its Dorado oil development and Buffalo oil redevelopment. Early days I know, however CVN’s future looks okay, your thoughts?.

Keith E.

Good call on not moving too fast on potential take-over situations, Shannon. I refer specifically to LNK which was the subject of a take-over by an American outfit for $5.65. Couple of days ago they withdrew so the LNK share price went over a cliff. I have to admit I looked at taking a punt on LNK, REG or TNK but I kept hearing your voice in my head advising to wait until things firmed up, so I resisted the temptation and am now glad I did. More a comment than a question, but I do think the LNK situation… Read more »

Bruce S.

Hi Team I have an inquiry / question for Virtual Live Would you care to give an option on Strategic Elements Limited (SOR) ? This is a research Company associated with the University of NSW . It is involved with Liquid Battery Technology and Nanocube Memory . This is high tech in the extreme . Cutting edge stuff . All research reports that i have seen are looking very bright for this Company .The Stock has begun to take off. From 15 cents to 32 cents within a week And whats more because it is research there is an exemption… Read more »

John G.

Hello Shannon, Pilbara Minerals (PLS) is purchasing the adjoining lithium mining lease from a company that went broke. I have my doubts whether this is a good idea. If the vendor company could not make money out of it, why would PLS be successful? I can see some advantages, the synergies of having a larger area, may be the use of the same equipment and machinery, but is that sufficient? My other concern is, PLS debasing the value of everyone’s holding, by conducting an equity raise, issuing shares at $0.36 to finance the purchase. A few days ago, it was… Read more »

Alan S.

On 17 December in relation to rare earth plays you mentioned Alkane Resources (ALK) as a RE stock. Sorry to correct you but ALK is a pure gold stock now after demerging their subsidiary company Australian Strategic Materials (ASM) in July 2020.
ASM has a great story to tell in the RE space having links with South Korea in the development of a new cleaner process for extracting RE minerals.
Could you please research ASM and provide a view in your next Virtually Live.
cheers
Alan

Graham B.

Hi Shannon,
Could you comment please on Crown Resorts (CWN) as a comeback story. I acknowledge the Class actions announced as well as legislative problems around Casino licences and the holding of James Packer. However, given that the Barangaroo site is already constructed in Sydney and all Governments need the tax revenue attached to gambling, are we ultimately looking at a very beaten down stock likely to recover or are there easier, less risk, gains to be had elsewhere?

Mervyn Y.

Hi Shannon.
Thanks for the show, I learn a lot every week from your commentary. I didn’t end up selling CDV on the hope that the stalemate could be broken and the worst case scenario would have been $1.00 at the time. Can you please comment on how you think this will play out? Would your recommendation be to hold now? Thank you.

Anonymous User

Hi Shannon,
A question for next virtually live – “What is the simplest way to invest in IPO’s? It’s simple to find IPO calendars and identify when they will first be listed publicly, but to invest in IPO’s before this listing date seems rather convoluted? (ie, i need to reach out directly to the company or broker and get prospectus, etc, etc – is there a better way?). Also – any suggestion for getting access to US or HK IPO’s. Much appreciated.

Linda – NSW.

Daryl L.

Hi Shannon
All the best for Xmas and the festive season, I was a bit surprised in your LIC V ETF response you didn’t mention or advocate for FGG, FGX and maybe AFIC. I have significant funds in all and feel they represent the opposite of what you discussed. Appreciate your thoughts/comments. Thanks for a great 2020, really looking forward to 2021.
Compliments of the season to all
Daryl – Greenvale Vic

Damon B.

Hi Shannon,
I’d love to hear your thoughts on Unibalwest (URW) in particular with the ongoing boardroom and debt issues. Do you feel this will impact the long term recovery?
Thanks

David F.

Is it a good time to invest in kogan?
Thanks
David from Logan

James Y.

hi Team,
Recently companies I hold have offered shareholders Share Purchase Plans, Renounceable and Non- Renounceable Entitlements. Can you explain why companies would choose each of these three different options?
Kind regards,
James

Daryl L.

Hi Team
An example of poor performance of Australian Companies going offshore would be WES venture into UK Hardware with their Bunnings model that didn’t work But, there are others.
Thanks
Daryl Vic

Daryl L.

Hi Team
Given the poor performance history of Australian Companies going offshore, I’d be interested in your comments on the inclusion of Pointsbet in the High Conviction Strategy?
Thanks
Daryl, Greenvale Vic

Graham B.

Hi Shannon,
As a means of gaining international exposure, without direct ownership, can I have your thoughts please on LIC’s v/s ETF. Which you would choose, if any and why. IOO is widely reported can you comment on it please.

John G.

Hi Shannon,
What are your views of APA?
I do like the yield of 4.7%, but according to Commsec, their EPS is only $0.27 and the actual DPS is $0.50! My other concern is, that their debt level is very high. When one get next to nothing in the bank, the 4.7% yield is very attractive, but is it sustainable and is it safe?
Many thanks,
John

Daryl L.

Hi Team
Does ASIC’s recent review of BNPL suggest the best is perhaps behind us and it’s time to lighten our holding of these stocks? Keep up the great work.

Thanks
Daryl, Greenvale Vic

Graham B.

Hi Jordan, Given the improving likelihood of Covid vaccines could you please let me have your thoughts on Flight Centre (FLT) and Webjet (WEB). Both are down roughly 50% on prices immediately before Covid, however Webjet looks to have a lower cost business model, higher profit margin and diversification due to hotel and car rental businesses. It also has more corporate shareholders on its register than Flight Centre. Do you see either of them as a come back story and if so which one would be your 1st choice?

Anthony D.

Hi team, I know it is early days, but I am interested in your thoughts on two new takeovers which have been announced this week, RXP at $0.55 and VTH at $1.00. The price of each has climbed significantly since the respective announcements, but both are still below the levels of the takeover bids.

David F.

Could you please comment on ooo as a play on the oil market.
Also is telstra a good stock to buy to have exposure to 5g.

Brian F.

Hi team. I have actioned the recommendation to sell Village Roadshow (VRL) but while doing the trade I wondered why the stock would be trading at a premium to the SOA offer. Do you know the reason for this? PS. Should have read the previous question before posting this.

Mark R.

24 hours after Brian F and I sold our VRL shares and asked why VRL was trading above the offer price, VRL is up 8% with still no announcements or news indicating why. I understand the rationale for selling yesterday and am still satisfied with the return, but it is of course frustrating to see the stock rally the next day. Same thing happened with OPC. Obviously there are some people in the market that either know more than us, or are simply braver. Do you think that in future, when stocks are trading slightly above the offer price, we… Read more »

Mark R.

VRL turned out to be a good quick trade, we received the return we were expecting but much faster than expected, so that the funds could be released for investing in another trade such as CCL. Well done! Question though: Why were we able to sell VRL at $2.35 or more, when VRL and its bidders more or less said that holders would not be receiving more than $2.32. Why were others willing to buy for more than $2.32? Might they announce a dividend as part of the scheme? Reminds me of what happened with OPC. Could something similar happen… Read more »

Mark R.

For the CCL trade, I’m interested in your thoughts about protecting against downside by using options… either buying puts (which would limit upside) or selling calls (which costs money). My question is that at what strike prices and bid/offer? There are no bids or offers from market makers, so how do I know what to bid or offer?

In the past I’ve used calls for this purpose, but in those cases there was more activity in the derivatives and the bids/offers were already in the market.

Paul F.

Hi Team, PNC has more than doubled since it came out of its trading halt. What is happening here and what is the outlook for the future?Thanks.
Paul L. Farrugia Member 11456

Brian F.

Hi team,
Could you please give your opinion on Suncorp.
They were once a darling of the dividend with a share price over $19, but seems to be a bit of a basket case now at just over $8.
I have shares that I’ve owned since 1988 when Metropolitan Permanent Building Society became Metway Bank, later to merge with Suncorp.
While they certainly don’t owe me anything as the dividends over 32 years have paid the initial price of $1 over and over again.. I’m undecided whether maybe it time to let them go.
All thoughts appreciated.
Regards
Brian

Bruce G.

Can you please comment on virtual live regarding CGFPC. Some Rivkin members maybe Holders of CGFPB and will be able to apply for CGFPC.

Carol B.

Hi Shannon

Could you give me your views on Dubber Corporation please. Is it a buy?

Thanks for the show

Carol

Ian G.

Hi Shannon
I have been offered the opportunity to invest in the Bendigo and Adelaide Bank Capital Notes (Capital Notes) Offer. Can you please give your thoughts on these.

Thanks
Ian

Michael T.

Hi Shannon,
Thanks for comments on DOW last week.
Would like to know your though on LYC Lynas Corp both fundamental & technical. The company seems to be slowly turning thing around since its lofty highs of 2010. Have sent you a separate email with some research done this end.
Thank
Mike T

Agustin Benitez

Hi Mike! Your question has been added to tomorrow’s episode. Thanks.

Graham B.

Hi Shannon,
Can I have your thoughts please on the TPG Singapore spinout known on the ASX as TUA – Tuas Ltd. At the time of writing the price was about .71c. The price has risen about 42% in a month.

Agustin Benitez

Hi Graham, Thanks for your question – it has been added to tomorrow’s episode. Regards 🙂

Ryan S.

Hi Guys,

AGL, I started looking at it a few months ago and its lost about 22-23% of its share price in that time, I have also looked back on anything you have talked about for it but wonder at what point might it become a buy again. As in for a 5 year hold with say a parcel between 5000-10000 shares

Any chance you could throw it into tomorrow’s show?

Cheers
R.

Agustin Benitez

Hi Ryan! We added your question to tomorrows show. Thanks for your submission!

Daryl L.

Hi Shannon
Great show, could we have your current view on Wisetech Global WTC please.
Thanks
Daryl Greenvale, Vic

Agustin Benitez

Hi Daryl, your question has been added to tomorrow’s episode. Thanks for your support 🙂

Brian F.

Hi team,
Could you please give your opinion of Boral (BLD).
Also please comment on the appointment of nominee directors of Seven Group Holdings (SGH) to Boral’s Board. Is this beneficial for shareholders?
Thanks and regards
Brian

Agustin Benitez

Hi Brian. We’ve added your questions to tomorrow’s episode. Thanks for your submission.

Michael T.

Hi team, Your thoughts on DOW Downer EDI, Price has not returned to pre CV19 levels, is there any up side from here with the Govt spend on infrastructure. Will the anti coal sediment affect them.
Mike T

Agustin Benitez

Hi Michael. We’ve added your question to tomorrow’s episode. Thanks!

Graham P.

Can you please comment on virtual live CGFPB and the repurchase options

Antony S.

Hi Team
Is there a price at which AMP becomes a buy? Or is it a complete basket case?
Cheers
Tony

Philip P.

Hi everyone,
I currently own Amcor shares (AMC) and have noticed that I now have CDIs in this company.Could you please explain what they are,how this came
about,and what implications this has on my share holding ??? Many thanks for the good work.
Cheers Phil

Josephine P.

Hi Team

I am an investor in both Coles (COL) and Woolworths (WOW) and if I was to invest further as a recession defence strategy, which company would be best at current values in your opinion. Dividends are not that great, but we all have to eat.

Thanking you

Josephine

Stephen W.

Guys, I notice PNC has structured its 3 year exec incentives on vesting if and when the share price hits $1. Does this influence your view and likely recommendation to exit at around current prices when PNC starts trading again and take the loss?

Stephen W.

Hi guys, this is a broad question on investment opportunities as we emerge from COVID. Which sectors do you see as providing the best probability for capital gain over the next 12-24 months?

Daryl L.

Hi Team
Just wondering if you had any clues as to the recent past improvement in the share price of FGG & FGX? FGX in particular had been dragging for quite some time and at one point dropped well below the initial entry.

Much appreciated
Daryl Greenvale Vic

Agustin Benitez

Hi Daryl,
Thanks for your question – It has been added to tomorrow’s episode.
Cheers

Brian F.

Hi,
Can you please give your opinion on REECE LIMITED (REH). “Over the last 3 years, earnings at REH have declined by an average of -2.55% annually.This is worse than the industry average growth of 1.17%. For fiscal years 2021 and 2022, analysts are estimating that average annualized growth will be weaker than during the last 3 years.”
But contrary to that, it seems to have some upward momentum recently.
Regards

Agustin Benitez

Hi Brian!
Thanks for your submission – the question has been added to tomorrow’s episode.
Regards

Michael & Lisa T.

Hi
Can I get your opinion of whether the Charter Hale Wale Long (CLW) Securities Purchase Plan is likely to be worthwhile and generate a profits on shares purchased. Best Regards Michael Tegg

Agustin Benitez

Hi Michael!
Thanks for your submission – it has been added to tomorrow’s episode.
Regards

Mia R W.

Hi Team,
What are you thoughts on Piedmont Lithium (PLL)?
Thanks,
Mia

Agustin Benitez

Hi Mia!
Thanks for your question – it has been added to tomorrow’s episode.
Cheers

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