SPEAKER: Julia Lee, Equities analyst, Bell Direct LOCATION: Sydney DATE: March 2013
ASX INVESTMENT TALKS Investing through different cycles
DISCLAIMER: The views, opinions or recommendations of the presenters are solely their own and do not in any way reflect the views, opinions, recommendations, of ASX Limited ABN 98 008 624 691 and its related bodies corporate (“ASX”). Information and material presented at the seminar is for educational purposes only and does not constitute financial product advice. Investors should obtain independent advice from an Australian financial services licensee before making investment decisions. No responsibility is accepted by ASX for any loss or damage arising in any way (including due to negligence) from anyone acting or refraining from acting as a result of this information or material. © Copyright 2013 ASX Operations Pty Limited ABN 42 004 523 782. All rights reserved 2013.
Where are we now?
* Change from general optimism to pessimism
Optimism Optimism
Relief
Hope
Depression
Excitement
Thrill
Euphoria
Anxiety
Denial
Fear
Desperation
Panic
Despondency
Growth at reasonable prices (GARP)
•Dividend paying universe
•5 year average 15%+
•P/E less than 16
•ROE greater than 15
•Mkt cap greater 100M
Stock Yield P/E ROE LYL 5.1% 10 20% DTL 5.6% 14 20% ILU 2% 8 22% MYE 4% 8 15% MLD 3.2% 9 18% FGE 3% 9 17% JIN 1.2% 16 18%
Momentum
- Stock that reach new highs are likely to continue to make new highs
- Stocks that make new lows are likely to continue to make new lows
- A stock in motion will stay in motion
Studies on momentum
• Debont and Thaler (1985) • Rouwehorst (1998) • Griffin and Martin (2004) “Globally, momentum profits are large & statistically reliable in periods of both positive & negative economic growth”
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Top defensive sectors
Industry Dividend yield
Telecom 5.9%
Banks 5.5%
Utilities 5.4%
Staples 4.2%
Healthcare 2.2%
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Disclaimer
The information in this presentation is of a general education nature only. It does not take into account the investment objectives, financial situation or needs of any individual investor. Before making an investment decision we recommend that you consult a professional advisor.
The Bell Direct service is provided by Third Party Platform Pty Limited trading as
“Bell Direct” (ABN 74 121 227 905) an Australian Financial Services licensee (AFSL314341) and a Participant of the ASX Limited Group.