......... Well actually it may just be. I'm looking for opinions and am happy for the varied viewpoints on the following senario. In any event I'll do my due diligence but getting the head start on where to be diligent is where I'm at. My family has just received about 1ok of Telstra and for all intents and purposes holding onto it along with the dividend is enough to be quite comfortable with the investment. However at the moment the mining sector is being slaughtered and the chances of a mining stock moving 1,2, or 3-fold on a conservative framework is much more likely the same for the telco. So there's the first point, keep Telstra or look for a bargain? Now if we sold the lot and had some $ to play with where would you go and how would you split it? From my perspective I'd want to keep it all in stocks as that's the 'nature' of the money so pms are out. And while it's a good amount of money for us it isn't some thing we can't afford to lose so making a few bolder decisions isn't out of the question. So while I'm such a newbie at stocks my initial thoughts if we went only mining (and on this I'm happy to be enlightened as whether wise or not) is about %50 in to BGS for the big bucks, 25% to NCM as little bit more conservative but still with plenty of play and the rest into vetted 30c to $1 stocks like SLR, NST, PRU, etc. It's a skeleton plan if the experts among you would even give me that sway. But pro or not I would love to here your thoughts. Thanks in advance, Js
Cash rich, high margin, producers.... at this point is about margin for gold producers. I would not put NCM in that category right now. There is nothing wrong with holding some TLS shares. Its not an all-or-nothing situation. It can be a some-and-some situation. Newbie mistake would be all-or-nothing.
As Silver Sanchez said, nothing wrong with a few TLS shares. However taking everything you have said into account, including your risk strategy, I would be holding off on Newcrest, Silverlake etc for now as I believe they have further to fall. Not saying they won't survive, but they way POG is heading, some goldies won't. Debt and high production costs are going to send the SP of many producers further south and into Cap Raising. In my opinion, BGS is a good play at the moment with plenty of upside. However I do hold it so my opinion should be taken with a grain of salt. Other factors to consider include how long you wish to keep the shares, what does your current portfolio look like etc. NOW, if only I had $50k of new money to invest........ Of course, DYOR.
People have been value buying miners all the way down. They likely have much further to go, so I would study them. Personally, I am going to put most of my money into the best big miners and say 20% into the juniors. From the eventaull bottom, we should see 1000% or more rise in the miners and that is just the majors.
I wish I could keep up the guise that it was 10k of Telstra shares that we had but alas it is only about 2500 shares that we've got. Hence that while $10k is nothing to sneeze at it's still a good kitty to play ball with. In the event of a $50k dollar TLS hold I agree that holding on to at least a portion of them would be more than fine. At this amount ($10k) would that idea scale down? All or nothing..... The emotional impetus of a neophyte. Some and some is definitely what watching SS has taught me. Seeing the commitment to pms gut a lot of wealth here has highlighted that. That's not to say that there won't be a black line crossed at some point just that maximising how early one crosses into the black and then how long one gets to ride the train is where some and some comes into its own. So some what and some what? All he thoughts so far have been great. From an adding to my knowledge perspective what differentiates the major miners from the juniors? Capitalisation? and what would be the example of the smallest major and the largest junior? I am guessing there's no line in sandpit on Martin Pl where those kiddies like to play Tonka trucks. Ta, Js
You might consider selling 1500 and keeping the other 1000. Nothing wrong with Telstra as a long term holding. If you want another long term holding take a look at WH Soul Pattinson (SOL). Large cap stock but is off everybody's radar because of the cross shareholding with BKW. Has stakes in a range of companies but biggest is coal. Recently has been buying stakes in little oil, gas and gold miners/explorers. Currently sitting on about 2 Billion of cash spread through the companies they control. I consider this to be a safe harbour if the markets decide to take a dump Also suggest looking at Senex (SXY) - a small oil/gas company with good management But expect more volatility with this one, especially if there is a market correction With gold miners NST seems to be better run than most and has the lowest cost per oz but the gold price could still take them down further All the above have no debt and current cash holdings - my preferred sort of company Purely IMHO so definitely not advice
Keep the Telstra shares. Even if it goes down you'll get the fully franked dividend. A respected newsletter writer has recently backed TLS at this price level (Scott Phillips of Motley Fool Australia) Being fresh you want excitement and big moves. The odds are well against you getting a move in the direction you want. The biggest vulnerability of a novice share market investor is the temptation to make big gains quickly. Unfortunately there seems to be only one way to learn - that's to lose enough money to feel the pain and wake up. That's the only way I stopped. There're not many like Bargain Hunter here with cobwebs in their wallets who will wait like years for the right buy at the right price (see CCP thread)
I read that fool article the other week and had my mind made up on it as a great hold with dividends and future growth looking very promising. Particularly with the NBN shuffle of optics to the node allowing Telstras copper to stay in play for the moment. Maybe I just need to make more money to play with that. Agreed that the green eyed monster can run away on me. The datum I here regularly on the stock market as the viewpoint of the successful ones is to stay away from the popular stuff and look closely at what's unpopular. With the trends of the overall markets and the players that make up those there is a direct opposition to the commodities sector so stark that it makes me pause. That's where the calm nerves must come in I guess to temper the POTENTIAL excitement against what's really there...... And at the moment it is volatile bum stock. Not to say it won't shit on everything else in the future. Trew thanks for the few ideas to. A proportional sell off of the good stuff (TLS) might also allow mrs snow not to feel like I'm gambling the gift away. And I'll definitely start the look into those you listed. Cheers Js
Jon, I highly recommend beginners stick to companies that are currently making a profit (and positive operating cash flow) and have strong balance sheets. This way even if you are wrong about the shares at least the company won't go bankrupt and you won't lose all your money. Also if your going to invest in gold miners only invest in those that are profitable, generating positive operating cash flow, have strong balance sheets, and low cost i.e. will still generate positive operating cash flow if gold drops to $1000AUD per ounce and stays there for an extended period.
Thanks Bargain Hunter, the outline is well received. With a plan like the above its hard to lose. NST at surface glance seems to hold the above in the gold miners more than most and alas it seems that TLS is one that has the overall boxes ticked as mentioned above. It would seem I just need to be thankful that I have them in the first place. Kudos to all the above there's much that can be worked on to get me out of the beginner box and into the beginner who lost some money box. Who knows I might even just skip that one.
