How will you spend your WAM windfall?

[Lawso]

WAM's 54c special div arrived on Friday and the takeover cheques will be mailed out tonight. What to do with all this lovely money?

I'm normally pretty cautious and income and capital security are important to me. But this time, untypically, I'm thinking of taking a couple of punts by putting a few thousand into Viking Capital and buying another 100,000 Widespread. Also, for the first time, going into NOG because of the Kupe gas prospects.

After that? Modest entries into TPI and RYM and top-ups of my FBU and NPX holdings. And, to compensate for the low or nil yields on most of the above, about half of the proceeds will go into fixed interest - North-South, Dominion Finance and/or St Laurence.

It would be interesting to know what other WAM holders have in mind. Flash car? Not for me thanks. Overseas trip? Just had one.

[Treetops]

KFL and GPG. Let them decide for you. Dam good managers. KFL has RYM and was a major sh of WAM Forget the finance companies. They're all struggling for funds apparently and will either fold or have to increase their rates. Use Raboplus on-line account oncall linked to your existing bank account, AAA bank security at 7.35% while you consider.

[Placebo]

Lawso: Are you taking the P*ss? Out of a solid performing market leader, jumping into unproven or high-risk non-yielders? And dodgy finance companies as well??

Methinks you have your tongue in cheek my friend...

[bongo66]

Buy an Island. Only a small one though cause Ellis sold the farm cheap.

B

[Paper Tiger]

Buy this website and it's contents. Then ban a few members....

;) Paper Tiger

[bongo66]

quote:Originally posted by Paper Tiger

Buy this website and it's contents. Then ban a few members....

;) Paper Tiger


I would of course have to ban myself...

[bongo66]

Im not sure what stocks to buy. Some of it will go back in.

On my list-sort of-are CEN, FPH, RYM and a few others.

Maybe even RBD...



Nah, just kiddin, B

[pimpit]

what u need is a JoeKing type investment style. that guys is a money making machine...

[bongo66]

quote:Originally posted by Lawso

WAM's 54c special div arrived on Friday and the takeover cheques will be mailed out tonight. What to do with all this lovely money?

I'm normally pretty cautious and income and capital security are important to me. But this time, untypically, I'm thinking of taking a couple of punts by putting a few thousand into Viking Capital and buying another 100,000 Widespread. Also, for the first time, going into NOG because of the Kupe gas prospects.

After that? Modest entries into TPI and RYM and top-ups of my FBU and NPX holdings. And, to compensate for the low or nil yields on most of the above, about half of the proceeds will go into fixed interest - North-South, Dominion Finance and/or St Laurence.

It would be interesting to know what other WAM holders have in mind. Flash car? Not for me thanks. Overseas trip? Just had one.



I was expecting it in my ASB CMA acc tonight as it says July 3 for "amalgamation payment" but nothing. Are they actually sending out cheques as you say?

Me want me money. NOW:D

B

[trackers]

quote:Originally posted by Lawso

WAM's 54c special div arrived on Friday and the takeover cheques will be mailed out tonight. What to do with all this lovely money?

I'm normally pretty cautious and income and capital security are important to me. But this time, untypically, I'm thinking of taking a couple of punts by putting a few thousand into Viking Capital and buying another 100,000 Widespread. Also, for the first time, going into NOG because of the Kupe gas prospects.

After that? Modest entries into TPI and RYM and top-ups of my FBU and NPX holdings. And, to compensate for the low or nil yields on most of the above, about half of the proceeds will go into fixed interest - North-South, Dominion Finance and/or St Laurence.

It would be interesting to know what other WAM holders have in mind. Flash car? Not for me thanks. Overseas trip? Just had one.


Viking Capital huh?

Ya...me..2...

[Lawso]

quote:Lawso: Are you taking the P*ss? Out of a solid performing market leader, jumping into unproven or high-risk non-yielders? And dodgy finance companies as well??
For your information, P, my planned dabble into VIK and WID will use up about 5.5% of my WAM payout and will represent 0.67% of my investment portfolio. Not unreasonable, I would have thought.
And, by the way, there's nothing dodgy about Dominion Finance and its subsidiary North-South, while St Laurence is primarily a property investor, not a finance company.
It's nonsense for people to think that all finance companies are in trouble and should be avoided. Take a look at www.chrislee.co.nz

[Placebo]

Cheers Lawso. Actually was a bit of a p*ss take myself. Good luck to you, what you do with the dosh is ultimately up to you (of course!).

I decided a couple of months back to "take the money and run", the biggest windfall came when TPI made its bid and added, what was it? 30% to the share's value? Anyway, I got out and jumped into RYM (very happy with that) and SKT (not so flash).

And I take your point re finance companies. I wouldn't for a moment think that the likes of Marac (PGC) are threatened by the fall of Provincial etc. I do, however, believe the sector is saturated and it will be a case of last man standing in the not-too-distant future, particularly if we see rises in consumer prices (fuel-driven) and a rise in loan defaulters as a result.

[COLIN]

quote:Originally posted by Lawso

It's nonsense for people to think that all finance companies are in trouble and should be avoided. Take a look at www.chrislee.co.nz


You are aware, of course, that this is the same Chris Lee who steered $7.5m worth of clients' money into Provincial Finance?

[OldRider]

For my money, the return from finance companies is significantly lower than what it should be for the risks taken.

Problem now, if they increase their investor interest levels to be able to retain their present borrowings, what happens to either their customer charge out rate or their profit.

[Lawso]

quote: posted by Colin
You are aware, of course, that this is the same Chris Lee who steered $7.5m worth of clients' money into Provincial Finance?
Yes, and as I understand it he is offering the $700k he earned in commissions to help shore up Provincial.
I reckon his assessments are worth noting e.g. warnings about Western Bay, Geneva etc etc, but as ever I'll make up my own mind.

PS. TPI cheque duly arrived in today's mail :D

[winner69]

At least you called it a windfall lawso

Thought you'd put into TPI .... in a preo today they were raving on what a fantastic buy WAM was .... good having a business on their books that had an EBITDA margin of 33% when their trad margins was 19%

TPI forecast for F2007 has the WAM contributing $103M EBITDA .... which is heaps when compared to thw same amount TPI hope to make this year

Great buy by TPI .... got a great comapny at a bargain price .... so thought you would take the windfall and build on it by holding TPI for a few years

[Treetops]

Well Lawso and Placebo. I've been stung in the past being too gready for interest rates. RSL and KLG. I won't be caught again. What is deceptive is the rates that even MARAC offer are below those of banks. Can you explain that? Why take a lower rate than a bank?
Check this out at http://www.interest.co.nz/term1.asp

I actually thought you wanted realistic replacements for WAM Lawso. Lets get back on track and forget the finance companies. Anything you don't like about diversifying in GPG and KFL? As for Chris Lee...mmmmm His reputation is in tatters and goes to prove even the experts can't tell a goodun from a badun. The message has come from none other than the reserve bank guv. Only fools will get caught now. Take your chances if you want. Sure they won't all fail and I was taking the p*ss to suggest that!

The words of wisdom from a posting minnow!
Treetops

Investors flee finance funds

TUESDAY , 04 JULY 2006

By ROELAND VAN DEN BERGH
Investors have deserted the finance company sector after two high-profile failures and a third apparently on the ropes.

"Liquidity is now a major issue for the industry," ANZ Bank says in its Market Focus report. Funds from investors had dried up after the collapse of National Finance 2000 and Provincial Finance last month, and the surrounding negative comment about the industry.

Tauranga-based Western Bay Finance was also understood to be in breach of its trustee covenants and has stopped lending.

ANZ says anecdotal evidence suggested existing investors were rolling over only between 10 per cent and 50 per cent of their deposits among lower quality finance companies, placing stress on their balance sheets. The sector's problems appeared to be limited to individual finance companies, however. The quality end of the market was sound. "There is little risk of systemic failure."

The sector had experienced "startling" growth of 20 per cent in the past year, ANZ said. Internal controls appeared to have been poor and in some cases had not kept pace with the rapid growth. "Investors have been myopic toward the risks involved."

Instant Finance chief executive Richard de Lautour said inflows of investor funds had slowed in the past month. The rate of reinvestment was also down in June and there had been an increase in the numbers of investors wanting early repayment.

"We saw some of this coming late last year, so we built up a bit of a war chest."

Instant Finance had a B3 "investment grade" rating from Rapid Ratings and was one of four finance companies to make its rating public.

However, Rapid Ratings has withdrawn from the sector in New Zealand due to a lack of demand for ratings. As a result of the withdrawal, "there is an urgent need to develop a methodology or system for assessing industry participants in order to reassure investors that their money is in responsible hands", Mr de Lautour said.

"We took the step to get a rating to try and put some distance between ourselves and the mass of the market. It is extremely irritating that just at a time that that rating is really going to separate us out we haven't got it for much longer."

Rapid Ratings managing director Patrick Caragata said his company entered the New Zealand market in 2001 in response to a plea from financial planners, but after five years only about 15 finance companies had been prepared to open their books to scrutiny, making the service unviable.

Rapid Ratings had the capability to screen up to 40 finance companies a year. "New Zealanders are just too tight-fisted. They don't actually take a look at the long term. The market has been very shortsighted."

Rapid Ratings withdrawal left large international agencies like Standard & Poor's as the only alternative. Spokeswoman Sharon Beach said the agency had sufficient graduation in the scale to differentiate similar operators.

The agency plans to release a review of the sector in September or October which would rank companies against each other, but would not provide individual ratings.

http://www.stuff.co.

[Treetops]

quote:Originally posted by Lawso

WAM's 54c special div arrived on Friday and the takeover cheques will be mailed out tonight. What to do with all this lovely money?

I'm normally pretty cautious and income and capital security are important to me. But this time, untypically, I'm thinking of taking a couple of punts by putting a few thousand into Viking Capital and buying another 100,000 Widespread. Also, for the first time, going into NOG because of the Kupe gas prospects.

After that? Modest entries into TPI and RYM and top-ups of my FBU and NPX holdings. And, to compensate for the low or nil yields on most of the above, about half of the proceeds will go into fixed interest - North-South, Dominion Finance and/or St Laurence.

It would be interesting to know what other WAM holders have in mind. Flash car? Not for me thanks. Overseas trip? Just had one.


Lawso
We know what KFL is doing now anyway. Perhaps we should have thought of this including me!
Shares are up to $1.25

KFL
05/07/2006
DIVIDEND

REL: 1003 HRS Kingfish Limited

DIVIDEND: KFL: Special Dividend Announced

NEWS RELEASE 5 JULY
2006

KINGFISH TO PAY SHAREHOLDERS SPECIAL DIVIDEND

Listed investment company Kingfish is to pay shareholders a special dividend
after a year of outstanding returns. Kingfish grew its net asset value by
24% in the year to 31 March 2006.

Announcing the special dividend at its annual shareholders meeting, Kingfish
chairman Robert Challinor said shareholders holding shares by the record date
of 21 July 2006, would receive a fully imputed dividend payout of 2.5 cents
per share.

"The board has elected and is able to pay this special dividend because
Kingfish has received greater than expected dividend income over the past
couple of months," Mr Challinor said. The most significant portion of this
additional dividend income was from a special dividend declared by Waste
Management as part of its recent amalgamation with Transpacific Industries
Group.

Kingfish director Carmel Fisher said the special dividend was in line with
the Kingfish dividend policy of distributing income after deducting operating
and management costs, including tax

[winner69]

Putting it all into TPI who took over (sorry merged didn't they) WAM would have been a good place to put the WAM money .... timed it right doubled your money

Must have been a good deal for TPI eh