Where to invest?

[Turtle2]

Welcome Matthew. If you want access to the money in 6-12 months for property investment then I would suggest you thoroughly consider whether it may not be more prudent to stick it in a term deposit than the sharemarket at the moment. Not saying don't do it, just to think very carefully about it. HBL is a large part of my portfolio and has been for years and yes it has been and still is (in my view) a very good long term investment. DYOR.

Thanks iceman, I am keeping a little back so have some to lose and a little wriggle room if it comes to that.

[Turtle2]

I totally agree with Iceman and Cricketfan.

Fast replies on here! Thanks Cricketfan and percy. Would you still say to stay away even if I have some money to lose? I don't mind he risk that comes with it. Would just stay away if I expected a reasonable correction in he near future (which is a possibility).

[percy]

Fast replies on here! Thanks Cricketfan and percy. Would you still say to stay away even if I have some money to lose? I don't mind he risk that comes with it. Would just stay away if I expected a reasonable correction in he near future (which is a possibility).

Different question.!
Sorry I forgot to welcome you to ST Matthew.
If it is any help to you I go for companies where I think their growth will be higher than their current PE ratio.Three companies I have recently brought who are currently paying reasonable dividends are EVO,PE ratio 10.99 with expected earning per share growth rate of over 12.5%,HLG PE 13.69 eps growth rate ov 15% and TNR pe 13.04 and expected growth rate of over 14%.
Warning.The sharemarket is my hobbie.I am a bookseller. You must do your own research.
One thing I am sure of though, is if you need your money out in 6months time I can bet your boots any share you buy will be down.!

[Turtle2]

Different question.!
Sorry I forgot to welcome you to ST Matthew.
If it is any help to you I go for companies where I think their growth will be higher than their current PE ratio.Three companies I have recently brought who are currently paying reasonable dividends are EVO,PE ratio 10.99 with expected earning per share growth rate of over 12.5%,HLG PE 13.69 eps growth rate ov 15% and TNR pe 13.04 and expected growth rate of over 14%.
Warning.The sharemarket is my hobbie.I am a bookseller. You must do your own research.
One thing I am sure of though, is if you need your money out in 6months time I can bet your boots any share you buy will be down.!

Thanks percy! Will have a further look into those companies but keep my boots in mind!

[malus]

Fast replies on here! Thanks Cricketfan and percy. Would you still say to stay away even if I have some money to lose? I don't mind he risk that comes with it. Would just stay away if I expected a reasonable correction in he near future (which is a possibility).

Welcome Matthew... I assume the problem you are wrestling with is return on fixed term deposit (low) as opposed to what "Mr Market" can do for you (may be a capital gain... one dividend payment). What you must realise is that many others are wrestling with the same issue and therefore "Mr Market" seems appealing to them at the moment too. I assume you know where market is generally, ie NZX index is hovering around a time highs.

What you must take into account is if a whole lot of bad news turns up tomorrow, Mr Market will have a whole different deal for you tomorrow too... could you handle a" manic depressive" Mr Market handing you back 40% less than you gave to him! (no matter how good the prospects of individual shares you chose looked time you took them off a "smiley face" Mr Market's hands).

What I'm saying is those of us that have done a few decades with Mr Market have witnessed many celebrations and many tantrums.

For me personally, and I suspect Percy too, we are comfortable with that, given we are long term holders and even with a 40% reduction in the value of our portfolios we are still well ahead of where we started and if we have chosen stocks well the dividend income will still flow during a market shock.

Clearly on this tread you are looking at "where to invest". Guess I'm just checking to make sure you know how fickle Mr Market can be and if he is the right character with whom to invest.

[hey_homes]

I've got a bit of money sitting idle following the NPX sale. Have been trying to find something I feel comfortable buying but as yet have made no moves. Might just give it a little while.

[Jantar]

I have set up a spreadsheet to help me with decisions like this. It looks at the RoI based on last 12 months ordinary dividends (not special divs) and my own estimate of the amount of growth likely in the following 12 months. It also uses the average price of my current holding in any share and the RoI that I am currently achieving, and also the total share of my portfolio that the security currently makes up. It then recommends Accumulate, Hold, or Reduce

It is personalized to my own holdings so may not give the same results for anyone else. At present it is suggesting I should be increasing my holdings in STU, HLG, GNE and THL.

[percy]

Sorry I forgot about this thread.Lets start afresh.
Objectives;
Time frame 4 to 5 years
The portfolio is looking for dividend yield of 3% pa with the capacity to grow to 6% to 8%.
Low churn.

HBL.Heartland Bank.Share price $2.11,PE 17.34,yield 4.22%.A proven winner.Strong organic growth in niche markets New products being well received via digital channels.Very high net interest margin.

HLG.Hallenstein Glasson,Share price $4.25,PE 14.67,yield 7.41%.Business back to marketing the right clothes the customers want. Momentum gaining traction.As per all retailers we need to watch out for weaken NZ $ and customer's buying patterns.

MEL.Meridian Energy. Share price $2.98,PE 36.75 yield %6.34%.Renewable energy supplier in both NZ and Australia.Powershop gaining traction in Australia.MEL's IT being licenced in UK and most probably Europe some.Growing use of Electric Cars will help grow demand.

OCA.Oceania Healthcare.Share price $1.03.PE 14.61.Yield, not yet paying a dividend.Retirement village/care provider.Strong tail winds will drive this sector over the next 20 to 30 years.,

SUM.Summerset Group.Share price $5.52,PE 6.59,yield 1.63.Proven record of following Ryman's successful retirement village development model.Development and unit resales growing strongly.Although the yield is poor the share price growth will more than compensate.

THLTourism Holdings.Share price $5.95,PE 23.19.yield 3.53%.Independant motor home holidays/travel is a growing worldwide sector.THL's business models are at the forefront,providing for all their customers' requirements.

TRA.Turners Automotive Group.Share price $3.27,PE 12.81 yield 4.43%.Vertically integrated business model, in a fragmented used truck.equipment and vehicle sales sector.Property developers of their own premises,sales,finance,insurance,and soon vehicle repairs.
All the above have strong balance sheets,good directors,strong management,strong brands,and are focussed on their core businesses.

But wait there's more.
For those people with a short attention span,ie 4 months instead of 4 years;
ALF.Allied Farmers.share price 10.6 cents,PE 10.93,yield 1.89%.Business turnaround is gaining traction,with ALF gaining market share in livestock commissions,and now finance.Could be a bit of fun should litigators are successful in the up coming Property Ventures directors court case.

[Bumkin]

Thanks for your advice, excactly what I’ve been looking for. MEL yield ? Craigs quote 8.8% Che.ers

[percy]

Thanks for your advice, excactly what I’ve been looking for. MEL yield ? Craigs quote 8.8% Che.ers

I have taken all figures from ANZ Securities site.
I think the 8.8% Craigs yield is gross yield, while the ANZ Securities is net yield.

Je whiz you have not posted very often.?
Once every couple of years..lol.