Question 1: Why have IVV and IHVV shares been split?
Answer: Blackrock’s iShares IVV and IHVV (which are exchange traded funds that track the US S&P 500 index) have been split. In the case of IVV, on a 1 for 15 basis (for each share owned before the split, the shareholder receives 15 new shares), and for IHVV, which is the currency hedged version, on a 1 for 10 basis.
Share splits add absolutely no value, so “reasons” to do splits are hard to find. The most likely reason is that it may improve the liquidity of the stock. For reasons I don’t understand, sone investors are wary of buying 1 share worth $400 but are okay about buying 10 shares worth $40 each. Give the number of enquiries I have received on this, the communication by Blackrock to shareholders has been abysmal.
Question 2: I own shares is WAM Capital – why does the share price keep falling?
Answer: As I have warned on many occasions, WAM has been trading at a considerable premium to its NTA (net tangible asset value). This is unsustainable, particularly when its investment performance is back with the pack. I have never understood why some people want to pay $1.20 for something worth $1.00.
Question 3: A couple of brokers are super bullish on lithium, others are more reserved, warning of an impending oversupply past 2024. What is the consensus broker forecast for Pilbara Minerals (PLS) and Allkem (AKE)?
Answer: As you point out, there is a huge divergence in opinion about the demand/supply imbalance and what this will mean to the commodity price. This is reflected in the broker target prices.
For Allkem (AKE), the consensus target price is $16.67, about 27.9% higher than the last ASX price of $13.03. But the range of target prices is wide – from a low of $10.80 through to a high of $22.50.
For Pilbara Minerals (PLS) , it is even wider. A low target price of just $2.60 up to Macquarie’s target price of $7.60. The consensus is $4.59, about 1.8% higher than the last ASX price of $4.51.
Question 4: When do the big banks pay their dividends?
Answer: NAB paid its final dividend of 78c per share yesterday and ANZ pays its final dividend of 74c today (Thursday). Westpac pays its final dividend of 64c per share on Tuesday 20 December.
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