Reporting season may have dominated the past few weeks but it wasn’t the only event in the markets. There is also the Telstra buyback on the cards and for SMSF trustees, who are considering whether to sell, or not to sell, Paul Rickard has written a thorough investigation of all the pros and cons, which you can read here.
Paul says: “Deciding whether to accept an off market buyback is a pretty straightforward decision. If you are paying tax at a high marginal rate (30% or higher), don’t even bother to open the offer document – throw it in the bin.”
“If you are paying tax at 0% (such as an SMSF in pension, income under tax free threshold), you are mad if you don’t accept – and if you are somewhere in between, such as an SMSF in accumulation, it will depend on the tender discount.”
Back in June, Peter Switzer also called out NAB as a potential outperformer, despite some commentary that its US operations were still a bit of a drag. He had been listening to business strategist Gary Hamel, who made him think the bank had the potential to surprise the doubters.
He believed that the bank’s focus on business banking could be worth more in the next two to three years.
“I do think they might be a surprise package,” he said then.
As the share price chart below shows, it’s still having its ups and downs but it is heading slowly northward. Its new chief executive, Andrew Thorburn, is showing that he is serious about turning things around with offloading its US operations and changes at the top. It’s still the laggard of the banks but has the potential to surprise.
National Australia Bank Limited (NAB)
Source: Yahoo!7 Finance, 4 September, 2014
Other SSR calls we’d like to highlight include Ardent Leisure (AAD), one of Peter’s favourites, which has also shot up in recent weeks. It started the month around $2.50 and is now trading well over $3.10.
And Paul Rickard’s darling Ramsay Health Care (RHC), which has managed to outperform the newly floated Healthscope (HSO). Healthscope listed at $2.10 and closed on its first day of trading in late July at $2.21 but has only now got above $2.28. Ramsay, on the other hand, has simply powered through August and added almost $5 to be now trading at around $53.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
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Also in the Switzer Super Report:
- Charlie Aitken: Champagne Charlie toasts WOW
- Tony Featherstone: Qantas finds value in frequent flyer loyalty
- Staff Reporter: Buy, Sell, Hold – what the brokers say
- Tony Negline: It’s time to do something about the SMSF attacks
- Fundie’s Favourite: Oil Search – an energy company with plenty of oomph
- Questions of the Week: Investment properties and market outlook
