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Australia

Virtually Live: 29th June 2022

29 Jun 2022
By
In this episode of Virtually Live, Shannon Rivkin covers: Macquarie (MQG), Resapp Health (RAP), Pfizer (PFE), I BONDS, Iron ore, Future Generation Global Invstmn (FGG), and Paygroup (PYG).

In this week’s show

  • 0:18 – General market update
  • 0:26 – Q1: Is Macquarie a buy at these levels? Is is more attractive than banks in this environment as it is more diversified?
  • 4:53 – Q2: Do you have any insights in the takeover of ASX company RAP by Pfizer Australia?
  • 9:44 – Q3:  Morning Shannon, Have your team at Rivkin ever looked at US Treasury “I BONDS”.
  • 11:20 – Q4: Given the long and good run of the iron ore miners, in the medium term, should one be looking to lighten these off?
  • 14:52 – Q5:  Just an extension of last weeks investing for the 6 year old question 2, I’m wondering if perhaps that could be extended to FGG to give some international risk spread to the total.
  • 15:52 – Q6: What do you think about PYG as a potential takeover arbitrage – would it be considered a low risk play?

 

Listen to the audio version

 

Video Transcript (click anywhere to play)

SHOW COMMENTS / QUESTIONS (325)

325
Comments

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Lawrie H.

Hi Shannon, I am thinking of rebalancing my portfolio by increasing exposure to hybrids and reducing holdings in the Blue Chip portfolio. I am risk averse with a priority towards income rather than capital growth. Since the sharemarket generally is facing a number of well-known headwinds such that risks in the short to medium term seem to be on the downside, I wonder if hybrids to some extent can provide a safe haven? Since many pay interest based on a percentage above the BBSW, it’s highly likely that the return on these will increase over the next few months as… Read more »

Michael W.

Hi Shannon
Thanks for your comments on your watch list. Appreciate your thoughts.
Regards
Michael

Shannon Rivkin

Hi Michael,
You’re very welcome. I will try to do this regularly.
Regards,
Shannon

Daryl L.

Hi Shannon,
Just an extension of last weeks investing for the 6 year old question 2, I’m wondering if perhaps that could be extended to FGG to give some international risk spread to the total. I’ve certainly used FGG for our SMSF to get some international exposure along with Warren Buffet’s BRKb’s.

Daryl
Vic

Daryl L.

Hi Shannon
Given the long and good run of the iron ore miners, in the medium term, should one be looking to lighten these off?

Stuart H.

Morning Shannon, Have your team at Rivkin ever looked at US Treasury “I BONDS”. Warm regards Stuart

Charles C.

Hi Team, Is Macquarie a buy at these levels? Is is more attractive than banks in this environment as it is more diversified?

Bruce G.

Hi Team, do you have any insights in the takeover of ASX company RAP by Pfizer Australia? Cheers Bruce from NSW

Michael W.

Hi Shannon
Just wondering what your thoughts on where you see substantial value at the moment and what companies do you have on your watch list?

Also would you consider having even just a small portion on VL set aside for value plays when and how you see them? Nothing against the systematic approaches but I originally subscribed in the old days of Rene (then Jordan, then yourself) and Nigel and do miss your perspectives on this approach, even if it is just a brief discussion on what you are doing with your portfolio.

Thanks

Michael

James Y.

Hi Shannon,
I would like to hear your view of the risks and Rewards with Convertible Notes offers like this from WNX
Summary Points
• Wellnex Life to raise $7.5 million via a Secured Convertible Note facility issued to
Wholesale Investors1 only with the following main terms:
o Conversion Price ($0.25 per share)
o Maturity (maximum 24 Months)
o Interest Rate (9% p/a)

Robert S.

Hi Shannon I have held FGR for some time now, they appear to be a solid company with a compelling product and have performed well in the past. Do you see upside in the graphite industry and therefoe a potential buy opportunity in this company at the current level thank you.

Terence C.

Hi Shannon, you mentioned during your show that there are a lot of growth stocks in the market at the moment that are exceptional value. Care to elaborate more and name a few that stand out (in your opinion) that are not currently part of the Growth Strategy ?

Axel N.

Hi Shannon, I do own some NABPD as alternative cash investment to 0.05% interest in a bank account. Today I received a letter from NAB informing me that I am no longer able to apply for new capital issues unless i go through one of their licensed brokers, where both parties undoubtedly will get a nice commission. Is this just telling the ordinary retail customer “we don’t value your business, go away and stop bothering us”? In my book this is the height of impertinence! Would this be a reason to boycott Companies like that and concentrate on the ones… Read more »

Sasha Munir

Hello, your question has been added to the next virtually live session.
Kind Regards, Sasha

Daryl L.

Hi Shannon
Just wondering your current thoughts on AGL and whether the current upheaval represents a buying opportunity for the longer term.
Thanks
Daryl – Greenvale

Sasha Munir

Hello, your question has been added to the next virtually live.
Kind Regards, Sasha

James Y.

hi Shannon,
I am surprised that the Australian Election Campaign took place without addressing Energy Realism in Europe apart from Matt Canavan.
Would you like to comment on the Financial Times Report on HSBC response?
HSBC suspends banker over climate change comments
Financial Times, 23 May 2022

HSBC suspends senior executive for daring to question climate hyperbole

Sasha Munir

Hello, your question has been added to the next virtually live.

Brian F.

Hi Shannon.
I’d appreciate hearing your thoughts about DOMINO’S PIZZA (DMP)
It’s momentum was great until Sept 2021, but has been a real dog since then.
Thanks and regards
Brian

Graeme S.

Hi Shannon. I’ve recently inherited some shares, hybrids, and a bond fund. As there would be a large capital gains tax payable if the shares were sold, I intend holding most of them for the attractive yield. However I’d appreciate your views regards holding or selling UMG – which is showing only a modest capital gain and has a very low (unfranked) yield. I’d also appreciate your views regards holding or selling the hybrids (CWNHB, NABPF, WBCPI) and the bond fund (BNDS). Thanks!

Daryl L.

Hi Shannon, just wondering how shareholders were supposed to be advised of PDN SPP. I have a holding in my SMSF and I received neither email nor “snail mail” advising of PDNs SPP. If it weren’t for you guys and in particular VL, I’d have been none the wiser. Appreciate your comments so I’m ready for next time.
Keep up the great work.
Daryl
Greenvale Vic

David J.

I see now IGO raised its offer for WSA and looks like full steam ahead. WSA had a 19.9% stake in Panoramic, could this be the next step

Paul B.

Hi Shannon. Can you provide some clarification on the status of Prime Media Group (PRT) I bought in early Jan at 0.4575. There was a capital return of 0.10 and a special dividend of 0.26 on Feb 4. Nevertheless, PRT is still trading (as PRT Company Limited) at 0.465. It looks like I’m sitting on a significant gain, but I’m unclear as to future events and timing. Best regards, Paul

Ryan S.

Hi Guys,

Im not a big fan of Kogan, but how low do you think it could go? and is there a level you would buy some as a medium risk investment? (Or would you just stay well clear)

Cheers

Stephen W.

Hi Guys, I still hold a number of PNC shares which, after the Carlyle scam, have traded around 50c for a while. Off the back of a recent insto raising (for positive reasons) PNC has announced the chance for existing shareholders to buy shares at $0.55 per share, with an attaching 1-for-1 option at an $0.80 exercise price, expiring on 31 March 2025. I’m holding a 60% loss on PNC. Is this a chance to average down or a flashing red light?

thanks

Robyn K.

Hi team
I hold PDN shares and am eligible to buy shares @ .72 in their SPP. I am wondering what you think of the potential of investing up to $30000 in these, considering the current climate for uranium?
Thanks
Robyn

Keith E.

Hi Shannon, Please can you provide some comment and clarification on the proposed merger of BHP’s petroleum business with Woodside. I just received an email from BHP which raises more questions than it answers! BHP proposes an in specie dividend which seems to be in recognition of the value of BHP’s assets being transferred to Woodside. It also talks of the issue to BHP shareholders of one Woodside share for every 5.534 BHP shares held. This, I assume, is the in specie dividend. But the BHP email also talks of the value of the in specie dividend at the current… Read more »

Anthony D.

Hi Shannon, I am interested in your thoughts on lithium producer Sayona Mining Ltd SYA. In the past month, it has risen from around 12c to close at 31c yesterday, having touched 38c during the day. I appreciate lithium is a big thing at the moment, but this one seems to stand out.

Regards,

Tony

Brian F.

Hi Shannon

Is the Income Strategy still being maintained? I can’t find a recommendation regarding the strategy since November 2020.

CBA redeemed CBAPF on 31 March. I’m not sure now whether they were part of the strategy or whether I bought them on my own. Either way, can you recommend something to replace them with, please?

Regards

Brian Foster

Stephen Y.

Shannon
I’d appreciate your views on URFPA as an arbitrage opportunity. The responsible entity of URF announced on 28 March the proposed sale of their property portfolio and winding up of the fund. They say that the proceeds of the sale will first be used to retire the URFPA at their $100 face value; and the residue paid to holders of URF at about $0.22 per unit. Oddly URFPA and URF last traded on 1 April at $82 and $0.225 respectively. The proposed sale needs the approval of the holders of URF by ordinary resolution.

Shane D.

Hi Shannon, can you comment on Canarvon’s CVN recent confirmation of oil reservoirs at their Pavo-1 well. Canarvan’s Dorado production infrastructure is planned to be in place by the end of 2025 and will have the capacity to tie-in other fields like Pavo & Apus-1. Today Canarvon announced it was conducting a fully underwritten institutional placement of 234.8 million new fully paid ordinary shares to raise approximately A$70 million. Do you see Canarvon as a good investment with its recent confirmation of oil reserves, and is an institutional placement of this size “normal” to raise capital to enable Canarvon’s development… Read more »

Keith E.

Hi Shannon, was wondering if you have any opinion on Whitebark energy (WBE). I bought some as a punt some time ago, and they got into a bit of trouble with their Canadian operation at Wizard Lake I think it was, Have since been delisted from the ASX but are trying to get this back. They have just announced a 1 for 2 offer at the rather ridiculously low price of 0.002 plus a 1 for 2 option. It’s not a lot of money but I wonder if I should continue investing in this little company or say no more!

Michael W.

Hi Shannon
Read today that the Saudis are looking at accepting Yuan for Oil. What effects do you think this will have on world markets?

Michael

Andrew J.

G’Day Shannon, the Magellan Financial (MFG) share price has taken a hit over the last 12 months for various reasons, do you consider it a bargain/ undervalued at the moment with up side potential? I would be interested in your thoughts on their current predicament.

Andrew.

Andrew J.

Hi Shannon,
What are your thoughts on the AGL demerger and the pros / cons of each of the proposed new entities?

Andrew

Stephen T.

Hi Shannon. Ansell’s share price has fallen significantly since mid last year. Would you please explain why and is this a buying opportunity?

Shane D.

Hi Shannon, can you comment on Tritium, a newly Nasdaq listing. Their proposed DC fast charger manufacturing facility in Tennessee is expected to produce more than 10,000 DC fast charger units per year with the potential of producing approximately 30,000 units per year at peak capacity.
Your thoughts on their future please, is this a reasonable long term investment.
Shane.

John R.

Hi Shannon. Just returned from W.A., and was blown away by the mines and transportation of minerals wherever I travelled. My research led to a company called Altech. Involved in high purity alumina for the battery industry. Seems to fly under the radar and I was wondering what your opinion might be.

John R.

Hi Shannon. A little research for you for your opinion on HZR. Could you also give your opinion on Strike and Talon on their quest for Aussie made urea and hydrogen via the Haber process. Looks exciting. Keep up the good work, but isn’t time we started getting into a few speculative stocks with potential?

John R.

Hi Shannon, I invested in Orecobra, Galaxy now called Allkem, AVZ & VUL well before the meteoric rise. With all the planned battery chemical companies coming on stream in the next year or two, do you believe that the supply will be greater than the need and put downward pressure on some of the newbies trying to get established. By the way made a killing on LMG. Should have recommended.

John W.

Hi Shannon, I always enjoy Virtually Live & the diversity of questions. I’m just wondering if you can shed light on CSL & the weakness in price. Is this tod do recently with their SPP. Regards John

Muhamed N.

Hi Shannon, QRI has been in a downtrend and even trading under NTA. As this is my first investment in a real estate income trust, have I missed some specific macro or other factors specific to this type of income trust to explain the current situation? Thank you. John Nathar

Stephen T.

Hi Shannon. I would appreciate your thoughts on Cobalt Blue (ASX:COB) and any other ASX listed companies that have a substantial interest in Cobalt.

John G.

Hello Shannon, Could you please throw some light on, how to extract lease obligations from a company’s debt. For example, if you look at WOW, it has nearly 1100% debt to equity. COL is ~350%. Normally, I would not invest in a company with such high ratio of debt, however I suspect their actual debt level is far lower. Many of their premises are leaseholds and the requirement to include lease obligations in their debt, bumps up the figures. (I dislike the idea of treating rental, as debt. Rent is expense, no different than electricity, insurance, etc.) Is there a… Read more »

Michael T.

Hi Shannon, would appreciate your thoughts on LSF (L1 Long Short Fund Ltd) trading on a very low PE 3.5 has had a good run over the last couple of years but so has the rest of the market. Recently failed to break a high set in October. Do you think this has the potential to go higher. Was looking to trade this one as opposed to holding for the long term.
Cheers
Mike T

David S.

Hello Shannon,
Can you give my your opinion on Latitude Group Holdings recently released hybrid LFSPA. Would it compliment the Income Portfolio as I prefer the quarter payment hybrids.

Jim E.

Hi Shannon,
According to Amaysim’s (AYS) announcements dated 21/03/21 there was supposed to be a final distribution payment of between 7 and 13 cents (estimated) about October 2021 for shares not acquired by WAM.
I don’t think this has been paid, can you explain if this is still coming?
Thanks,
Jim

Neville S.

Hi Shannon, sorry my query re diversified financials was unclear. The names I was referring to are PTM, PDL, MFG, AMP & others, that have fallen significantly. Your comments would be valued.
Thankyou,
Neville.

Michael B.

hi shannon happy new year appreciate your views on differences of afterpay shares going forward on australian listing or american listing do you think there would be much of a price difference thanks michael

Shane D.

Hi Shannon, I’m interested in your thought on Paladin PDN. I see PDN is one of Rivkin ASX Momentum Stocks, can you comment on PDN future.
Thank you,
Shane.

Anthony D.

Hi Shannon,
I am interested in your thoughts on the scheme implementation agreement where WAM Capital proposes to take over both Ozgrowth (OZG) and related entity Westoz Investment Co (WIC). There is no cash price, with the only payment option being in the form of WAM shares, but it may be worth a look.

Happy New Year!

regards,

Tony

Andrew J.

Hi Shannon,

4DS seems to be a speculator, what’s your view to there being any upside?

Daryl L.

Hi Shannon, it is my understanding that as a result of CSL acquiring Vifor Pharma they will conduct a SPP. Would you recommend taking up the offer or otherwise please?
Thanks
Daryl – Greenvale Vic

Daryl L.

Hi Shannon
Just wondering your current thoughts on WTC, Wisetech Global as a long term play. I’m looking to replace SYD with them when the takeover concludes. Compliments of the season to the Team. Thanks for your efforts in 2021, very much looking forward to a wonderful 2022, with less Covid as an issue though it is clearly going to be with us like the flu.
Daryl – Greenvale Vic

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