Question: I would like your opinion on the dairy co-operative Murray Goulburn (MGC). It has been sold off recently. I know the fundamentals are not really good because of the latest announcement (downgrading its fiscal 2016 guidance). Is it time to buy, hold or sell?
Answer (Paul Rickard): It’s not a stock that I follow closely.
History tells me to be very wary of a stock that is way so far short of its prospectus forecast that it needed to fire the CEO, and has been thrashed in the market.
It may bounce in the very short term, but the likelihood is that there is more downside ahead over the coming months.
Question: With your term deposit page [1] that shows the latest interest rates, do you take into account the different rates that a personal investor gets compared to businesses?
I have spent a large amount of time chasing this, with the major banks and the answer is always the same, super funds are considered to be companies, and thus the rates offered will be less.
Answer (Paul Rickard): I am surprised that the major banks won’t honour their advertised personal term deposit rates for super accounts. I have never had that experience (and I also run an SMSF with a corporate trustee), and would be really interested to know which bank is in this category.
Certainly, the minor banks (such as Rabobank or ING) offer the same term deposit rates for personal customers as “business customers”.
I think you should shop around. With the $250,000 Government Guarantee on a “per name, per institution basis”, I really don’t understand why you would confine your search to the major banks.
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