What to do with proceeds from TAL?

[pierre]

I'll soon be generating around $A50k from the likely takeover of my TAL shares and want to reinvest the proceeds in Australia. (I may also sell them on-market rather than wait for the takeover to take place.)

My TAL holding was a fortuitous accident resulting from my holding of old Govt Life insurance policies and apart from around 1000 IFL (also from the same accident) my only other Aussie holding is 500 BHP bought about 4 years ago at $A24.40.

I'd like to invest my $50k in two or three Australian companies with good capital gain prospects over the next 5-10 years but I'm not keen on totally speculative mineral stocks.

My current thoughts are one of the banks (ANZ perhaps?) and Qantas maybe but would appreciate thoughts from others who know the Aussie market better than me or who find themselves in the same situation.

Your comments welcome.

[shasta]

I'll soon be generating around $A50k from the likely takeover of my TAL shares and want to reinvest the proceeds in Australia. (I may also sell them on-market rather than wait for the takeover to take place.)

My TAL holding was a fortuitous accident resulting from my holding of old Govt Life insurance policies and apart from around 1000 IFL (also from the same accident) my only other Aussie holding is 500 BHP bought about 4 years ago at $A24.40.

I'd like to invest my $50k in two or three Australian companies with good capital gain prospects over the next 5-10 years but I'm not keen on totally speculative mineral stocks.

My current thoughts are one of the banks (ANZ perhaps?) and Qantas maybe but would appreciate thoughts from others who know the Aussie market better than me or who find themselves in the same situation.

Your comments welcome.

If you are looking towards the more stable dividend payers, QBE is a direct insurance replacement for TAL.

But you say you want capital growth, so maybe a large energy company like WPL or STO (i prefer STO over WPL myself)

I did read a recent article on "The Australian", how Aussie resource stocks have $95b worth of projects lined up, so LEI should benefit from that.

You dont wanna split $50k more than 3 or 4 ways, so QBE, STO & LEI would fit in with BHP as solid large caps in all the main indexes

[Corporate]

Like Shasta I'd be looking at either WPL or STO (I prefer WPL over STO) ;-)

In my opinion, be very careful. I have a feeling oil prices will go higher (US$147+) and leave the economy in tatters again.

[pierre]

Thanks for your comments and suggestions Corporate and Shasta.

You both like WPL & STO but each have a different preference. Could you explain why you prefer one share over the other?

Thanks

[shasta]

Thanks for your comments and suggestions Corporate and Shasta.

You both like WPL & STO but each have a different preference. Could you explain why you prefer one share over the other?

Thanks

Recent STO presentation:
http://stocknessmonster.com/news-item?S=STO&E=ASX&N=182115

Recent WPL presentation:
http://stocknessmonster.com/news-item?S=WPL&E=ASX&N=529772

Personally i like STO's projects better & think theres more growth in them, but both have exposure to LNG & you wont go too far wrong with either

WPL is slightly cheaper on a P/E basis @ ~21, (STO~24) - both have 2.6% dividend yields

Maybe hedge ya bets & buy some of each?

[Corporate]

I prefer WPL as they:

- are proven on large projects
- lower PE (and about to get lower once pluto is on stream)
- higher margin producer
- have massive scale on Pluto and Browse
- focus on traditional LNG compared to STOS CSGLNG which is relatively unproven

[Huang Chung]

Not advice, but I it were me looking for a safe stock with some growth potential, I'd be having a look at Cardno (CDD).

[ENP]

Westpac or Woolworths.

[pierre]

Hmmmm... glad I've done nothing so far but sit on my TAL. They've stayed steady while almost all others have been losing value since I asked the question.

Hard to know when is the right time to move!

[lissica]

Has anyone in NZ received their cheque yet?

Thanks,

Lissica

[lissica]

Ignore that last comment. I got my cheque today.