how to raise capital for student investors?

[shasta]

Gosh that sounds a little adventurous but it does seem to make sense. By the looks of it, ASX is where I should dump most of my money in right? NZX is not really suited for aggressive approach.

Do you think that 1 share in each category a little too risky? I totally agree with only 1 or 2 in long term as per warren buffett's teaching, if one company is good to buy then you should buy as much as you can. But speculative or options, it's more about research with an element of luck. Wouldn't it be better to have a few more buskets to put your money in?

looks like a revisit to the drawing board.

To meet your stated goals you wont get there with boring steady companies, you need multi baggers & they are out there, i just cant see any other way to get to where you want to be.

The conservative option was just a back up plan for if you lost most of the trading funds, perhaps you just need to throw yourself to the wolves & trade the whole lot & risk losing half your funds trying to double them & more.

Corporate has the right idea, if you are looking at the fundamentals its all about constant research, ive shared mine on the "LOW EV" thread, & these are the sort of companies you need to invest in, to double your money & beyond within say a 12 month timeframe. (Not saying to buy those, but to find similar companies etc)

I personally wouldnt diversify beyond 5 stocks, whatever the amounts involved are, & starting off with a modest amount (& needing high risk v high reward) you may just want to buy one stock to start with.

Its not easy to get it right all the time, have a look at the more astute members on Sharetrader & how they are doing in the NZX/ASX comps, thats the best minds on here & what returns they have obtained thru there knowledge

You may need to reassess your goals, & thats fine - if we could all turn $10k into $1m we wouldnt be posting here, we'd be on a tropical island sipping tequila sunrises

[petechewy]

You may need to reassess your goals, & thats fine - if we could all turn $10k into $1m we wouldnt be posting here, we'd be on a tropical island sipping tequila sunrises

Mmmmm that doesn't sound too bad, maybe $1m is the goal then! haha

shasta, I've read through your low EV resource and healthcare and it is really good. I guess just as a newbie question, what are the key things to look for in the micro-cap shares? It came pretty apparent to me that the foundamentals have different emphasis in micro cap market. How do I even began to find those promising companies out of all the companies on ASX?

SOrry to sound so newb, but in the past, my comfort zone has been NZX50 and only in the last year, ASX 200.

[trackers]

Mmmmm that doesn't sound too bad, maybe $1m is the goal then! haha

shasta, I've read through your low EV resource and healthcare and it is really good. I guess just as a newbie question, what are the key things to look for in the micro-cap shares? It came pretty apparent to me that the foundamentals have different emphasis in micro cap market. How do I even began to find those promising companies out of all the companies on ASX?

SOrry to sound so newb, but in the past, my comfort zone has been NZX50 and only in the last year, ASX 200.

focusing on mining companies, you need to think about situations where the company is going to be all of a sudden worth a hell of a lot more than it is currently. i.e

1. It is in a commodity sector which is booming or about to boom(and perhaps this fact has gone unnoticed to date)
2. It is in the middle of a mining programme that has a very high chance of success
3. It is so ridiculously undervalued in relation to its permits/resources (extra points for a certified JORC resource) that nothing else needs to happen other than people get wind of it - Remember the markets not as efficient as a lot of people would like to claim.

For me, in addition to having one or more of the above the company should have a low market cap, available cash, low shares on issue and active management.... long dated options and the like are also a nice bonus.

$10k doubled 7 times = $1.2mil... Certainly doable, but it won't happen overnight and it takes more than just good luck

[shasta]

Mmmmm that doesn't sound too bad, maybe $1m is the goal then! haha

shasta, I've read through your low EV resource and healthcare and it is really good. I guess just as a newbie question, what are the key things to look for in the micro-cap shares? It came pretty apparent to me that the foundamentals have different emphasis in micro cap market. How do I even began to find those promising companies out of all the companies on ASX?

SOrry to sound so newb, but in the past, my comfort zone has been NZX50 and only in the last year, ASX 200.

I havent gone into the healthcare ones in much depth, it was really just a filtering exercise.

The ASX site has lists of the sectors, healthcare, pharmaceuticals, resources, energy, Utilities, bitotechs, industrials etc

I use stocknessmonster to obtain PDF announcements, but the ASX site has that as well

[petechewy]

Did quite a bit research on the net just getting my head around micro-caps and how to research them. Most suggest micro-caps are shares under $250mil cap which is a hell of a lot larger than $10mil cap which we are discussing here. just a quiestion, how do i find a list of those companies (aside from reading shasta and SF's posts)? probably the most overwhelming thing with reading the reports is how will I know if the management is good/active? What should I look for in directors?

I've also been doing some research on mining and its process. one thing i'm not sure is, is it better to farm in/out with major companies or other smaller companies? what are some of the risks with interest in projects internationally (especially in Africa)? Do these microcap companies ever get into the actual mining or do they pass it on to other larger companies?

[shasta]

Did quite a bit research on the net just getting my head around micro-caps and how to research them. Most suggest micro-caps are shares under $250mil cap which is a hell of a lot larger than $10mil cap which we are discussing here. just a quiestion, how do i find a list of those companies (aside from reading shasta and SF's posts)? probably the most overwhelming thing with reading the reports is how will I know if the management is good/active? What should I look for in directors?

I've also been doing some research on mining and its process. one thing i'm not sure is, is it better to farm in/out with major companies or other smaller companies? what are some of the risks with interest in projects internationally (especially in Africa)? Do these microcap companies ever get into the actual mining or do they pass it on to other larger companies?

With small cap mining stocks you'd be better off with a limit of say $50m, as getting up to $250m is among the producers, which is fine if thats what you are after, but the small companies under $50m are usually at drilling stage, the ones above $50m may well be in the feasibility/development stage.

Getting a handle on Management/Boards can be difficult, but you are looking at what they have done previously & were they successful etc, also a key component is, how much "skin" have they got in the game, ie have they a decent holding in the company & bought on market?

You have picked up on a good point, companies that can attract large JV partners to mostly fund drilling campaigns usually have decent projects, always pays to notice who they neigbours are in nearby permits, this can indicate the potential for a takeover should a large company make a large discovery.

Theres no easy way to find companies like Steve Fleming & i do, its all research, i can give you some sites to look at ("The Australian" is pretty good)

Hope to catch up with you in Wellington & explain all this to you.

[DarkRed]

Petechewy

Bank student overdrafts are amazing! Did the same as well. Found another way of raising capital with relatively cheap interest rates lately...

This may or may not work for a student investor as it requires a credit rating that allows for lending but heres a sneaky trick to raise a bit of cash at a super low interest rate.
Banks have been selling the idea of transferring your credit card balances for people that have maxed out their cards and are on huge interest rates. They are offering 4.99%-5.99% on transfered balances. ANZ has come out and offered 2.99% for 6 months recently! ANZ's 2.99% got me thinking.

So heres what I tired/am trying.
1. Open a Kiwibank Gold Card with a 10k Limit, currently banking with ANZ also so increase my limit on ANZ card to 10k also.
2. Talk to ANZ about doing a balance transfer from the Kiwibank credit card. They usually only allow a 95% transfer of the card limit so 9.5k.
3. When it is all set up and approved do a cash transfer of 9.5k out of the kiwibank credit card to a bank account and transfer the 9.5k credit card balance to the ANZ card at 2.99%.
Now you have 9.5k for 6 months at 2.99%. Now what to do with it! The whole process can be done over the phone in less than an hour. Scary!
This may work for you or not, just an idea I thought I would put out there.

I am a young investor also, one of the hardest things Ive found about investing is finding young people that are interested in it. I always find it easy to talk through ideas with someone to get it clear in my own head. What i'm putting out there is A) Is there already a young investors association or social gathering that people like you and me could jump into? or B) Is it worth making a social event for young investors to go to? would you be interested in going if one was available?

[buns]

Nice thinking out of the box re raising capital - it's something I'll think about.

However right now extra (borrowed) capital isn’t my number one priority. I'm still in the stage of portfolio allocation and figuring out the best mix of investments, to achieve my goals. Your idea about a young investors group, I like. I suppose I would qualify being 25 and generally still unsure about things.

However what is the point of it exactly?

Ways for young people to get started and raise fast capital? Everyone wants cheap capital.

General portfolio allocation and strategy? Everyone has different goals, risk tolerance, experience and education. Unless you find someone similar to you, talking with a group of others may distract or confuse you from your own goals and thought or even turn into an argument (from my experience).

However, I think there are some general ground rules in investing which everyone kind of adheres by, and simply listening to someone else talking and agreeing to this kind of thing defiantly instills confidence in your own techniques.

I think the key ingredient for us youngsters or anyone new to the game is learning how the game works, and learning from experienced investors - there techniques, strategies and mistakes. Being surrounded by some seasoned campaigners can fast track this learning curve. That’s what I like about share trader.

I’m not shooting down your idea. However (from experience) I’m just cautious on whom I take advice from at this stage. FEEL FREE to contact me about any of this stuff.

Note- This is all coming from a guy who has never attended an investing group meet up

[buns]

What I am interested in from young investors/accountants is career paths, and thoughts on using your direct employment to reach your future wealth goals yet enjoying yourself on the way.

I’m a CA, and have worked in a NZX listed company (in corp division) since Uni. Now I’m ready to move on.

I’ve learnt a ton at my current work, and understand companies and the market in general a whole lot more than most of my graduation class. However those guys are all well above me in the technical accounting sense having all gone to the big 4.

That is what gets me thinking, what job (location, industry, company size….) should I be looking for to best round of my knowledge in business and investing? I like my current work and understand it (the role and industry) quite well, but wonder what I’m missing out on being removed from the (I call it boring) nitty gritty month end/technical accounting type work. Or would moving into another industry/environment help as well?

I one day want to work (by choice) in small companies (don’t like the hierarchal/red tape, slow changing, never get things done attitude in large coys) with potential to grow. What do I need to learn to fit into these companies and help that growth?

At this stage the enhancement in knowledge and being able to invest with it for me equals job satisfaction. But then there is the big one of lifestyle ( You can’t easily go fishing, camping or golf in Sydney/Melbourne/London!!), which to me is number one as a enjoyable lifestyle is the end goal of wealth creation, hence if I can find that (or as much as possible now) investing will become secondary.

[DarkRed]

Nice thinking out of the box re raising capital - it's something I'll think about.

However right now extra (borrowed) capital isn’t my number one priority. I'm still in the stage of portfolio allocation and figuring out the best mix of investments, to achieve my goals. Your idea about a young investors group, I like. I suppose I would qualify being 25 and generally still unsure about things.

However what is the point of it exactly?

Ways for young people to get started and raise fast capital? Everyone wants cheap capital.

General portfolio allocation and strategy? Everyone has different goals, risk tolerance, experience and education. Unless you find someone similar to you, talking with a group of others may distract or confuse you from your own goals and thought or even turn into an argument (from my experience).

However, I think there are some general ground rules in investing which everyone kind of adheres by, and simply listening to someone else talking and agreeing to this kind of thing defiantly instills confidence in your own techniques.

I think the key ingredient for us youngsters or anyone new to the game is learning how the game works, and learning from experienced investors - there techniques, strategies and mistakes. Being surrounded by some seasoned campaigners can fast track this learning curve. That’s what I like about share trader.

I’m not shooting down your idea. However (from experience) I’m just cautious on whom I take advice from at this stage. FEEL FREE to contact me about any of this stuff.

Note- This is all coming from a guy who has never attended an investing group meet up

I was just testing the water with my first comments on having a young investor group.
What I am thinking in my head is a way of getting off the computer I am typing on now and into a social situation with similar people. I throughly enjoy investing (still really learning) but I find that a lot of time is spent in the office by myself doing reading and analysis (to some degree). This is of course fundamental and needs to be done but it would be great if there was some way of combining the interest of investing with socializing and networking. Being young its fun to have a few brews and enjoy life, be good fun to have events and social interaction with other young investors. Seasoned pro's might even be kind enough to help us along with some snippets of advice.
A way to explain would be grabbing this newbies thread and making it social and a bit of fun in the real world...

Heading to start-up weekend in Auckland this Fri..pondering.