Dear %%first_name%%,
There’s no doubt there’s some current good buying right now, but how do you know which companies to buy? In his article today, Charlie Aitken takes you through the 4 dimensions that he believes are essential to evaluate a company for potential investment: quality, sustainability of competitive advantage, medium and long-term growth prospects, and valuation. Charlie says he uses this framework to identify quality sustainable growth businesses, purchased at a margin of safety.
As Tony Featherstone says in his article today, it could be well into 2021 before highway traffic volumes return to normal but the market has priced a more severe and longer traffic downturn into Transurban and Atlas Arteria. Tony sees these stocks as an opportunity for long-term investors who understand the benefits of owning infrastructure assets, particularly in a low interest-rate environment.
The Coronavirus impact demonstrates that dividends are wholly at the discretion of the company, and can be cut, or dispensed altogether, if the financial circumstances dictate. However, in his article today, James Dunn says that the big trio of Fortescue Metals Group, Rio Tinto and BHP should be able to pay above-market dividend yields this year.
And in Buy, Sell, Hold — What the Brokers Say, the 7 stockbrokers monitored by FNArena have 7 upgrades and 14 downgrades since their latest update.
Finally in Questions of the Week, Paul Rickard answers readers queries about whether Santos is a buy; Bapcor and its capital raising; whether there could there be a run on banks and will there be a second leg down to 4000?
Talk to you Saturday.
During this rare pause in history, I have been trying to encourage people to use this time to improve themselves. If you haven’t seen it yet, I encourage you to watch my video where I recommend things you can do to become a better you on house arrest.
In light of this, if you are looking to really learn about the ins and outs of the money world in a way that will ensure you ‘get rich’, I have extended my book SALE for the next 24 HOURS! If you haven’t yet read Join the Rich Club, and you’re one of the go-getters who is using this downtime to upskill, get in quick and buy my book ON SALE NOW!
Sincerely,
Peter Switzer