ASX

[devilsadvocate]

... Agreed, this is the benefit of a full service broker. Personally I don't like trusting my money with anyone, but they should listen to your needs and risk profile and then be able to advise you accordingly, but for an additional fee as mentioned.

Full service Brokers are a bit like other Financial Advisors - they have a tendency to steer you towards dealings that are profitable for them. CommSec do it too though. I managed my sister's account with them for a while under Power of Attorney, and they were big on encouraging you to invest in schemes the Commonwealth Bank had put up the finance for - presumably to ensure the security of the CBA's investment!
Some of the schemes they put up as "good investment opportunities" looked pretty risky to me.

So, in the end you have to listen to the advice, but not assume the advisor's are really committed to your best interest.

I was also annoyed with the exit fees when my sister died and her CommSec account had to be closed and the shares transferred to me. I'd been prepared to open my own CommSec account and transfer them to it, but they wouldn't waive the fees. So, I'll set up with e-trade. Their transaction fees are a little higher, but there are no exit fees. And because I bank with the ANZ it appears I can set it up all on one log in.

That's the bottom line really. Good point.

[boags]

I contacted my broker expressing interest in Fortascue Mining (FMG) today, & my instructions were to buy @ $3- however, despite closing at $2.80, they opened well over $3 (on the back of a strong Wall St overnight), & hovered around $3.05.
If I can get them at $3, I'm in.

Fortescue are now $1.88 so i hope you didn't get them at $3.00!

[Psyber]

I contacted my broker expressing interest in Fortascue Mining (FMG) today, & my instructions were to buy @ $3- however, despite closing at $2.80, they opened well over $3 (on the back of a strong Wall St overnight), & hovered around $3.05.
If I can get them at $3, I'm in.

Fortescue are now $1.88 so i hope you didn't get them at $3.00!

I wouldn't be too worried if I had bought them then.
Resource stocks will pick up again when the world economy gets over the recent shock and panic caused by [un]real estate, so long has they do hold real mineral resources in the ground.

[Punk Rooster]

I contacted my broker expressing interest in Fortascue Mining (FMG) today, & my instructions were to buy @ $3- however, despite closing at $2.80, they opened well over $3 (on the back of a strong Wall St overnight), & hovered around $3.05.
If I can get them at $3, I'm in.

Fortescue are now $1.88 so i hope you didn't get them at $3.00!

my aim is to but some more at lower prices, so as to average out a lower price overall.
ie $2, average buy price = $2.50.

[Pumba]

is now a good time to get into the banks or should i stay with resources to try and get some of my average prices down as i am getting flogged in this area?

[devilsadvocate]

is now a good time to get into the banks or should i stay with resources to try and get some of my average prices down as i am getting flogged in this area?

An old saying goes, never throw good money after bad.

That being said, I still think our resources sector will rebound strongly when the economic outlook improves. Problem is, that may not be for another year - 18 months.

Anyone interested in commodities prices, check out this site:

kitcometals.com
kitco.com

Have a look at the dump in base metals prices - copper $8,000 USD/tonne to $3,450 USD/tonne. Similar story in Zinc etc.

There are still plenty of doubts surrounding the banks too, but they are looking bloody cheap. If you have a long term view (18 months +) it could be a good time to start accumulating, but as always, do your research and read as much ass possible before taking the plunge with your hard earned.

[devilsadvocate]

Punk, probably best not to look at the BHP share price for a while.

Next stop is $16. I'll be putting in a PHAT order for $16.10.

[boags]

bought x number of BHP shares at $24.87
watched them go up to $25.10

Sell sell sell

Good advice as it turns out!

[devilsadvocate]

bought x number of BHP shares at $24.87
watched them go up to $25.10

Sell sell sell

Good advice as it turns out!

Not in 2011 when the price is $50

[Punk Rooster]

Punk, probably best not to look at the BHP share price for a while.

Next stop is $16. I'll be putting in a PHAT order for $16.10.

[devilsadvocate]

I know I shouldn't, but

[Punk Rooster]

back up to $27....

Can anyone explain why BHP's leaving Rio Tinto at the altar is a good thing (for BHP shareholders)?

[Psyber]

back up to $27....
Can anyone explain why BHP's leaving Rio Tinto at the altar is a good thing (for BHP shareholders)?

Not taking on Rio's debt load in a tight market.

[Punk Rooster]

$31

[Pumba]

i have some shares in ozl and things seem to be going pear shaped....any advice?

[Punk Rooster]

i have some shares in ozl and things seem to be going pear shaped....any advice?

consult with your licensed stock broker

[Pumba]

i have some shares in ozl and things seem to be going pear shaped....any advice?

consult with your licensed stock broker

hes the clown that said they were a good buy!

[devilsadvocate]

i have some shares in ozl and things seem to be going pear shaped....any advice?

What price did you get in at Pumba?
I've been watching OZL since they formed, as I was previously following Zinifex and Oxiana.
The problem for OZL at the moment is the significant fall in base metals prices, in particular Zinc and Copper. It's likely that the price of both of these will stay low throughout 2009 as there is unlikely to be any significant recovery in the US, UK and European housing market in the near term, which will also impact on growth in China and India. So there you have a significant fall in demand for both of these base metals. Stockpiles of both have also been rising significantly on both the London Metals Exchange and NY exchange.

OZL does have a very strong balance sheet. the company has loads and loads of cash ($300m at last check) and very minimal debt. So they're unlikely to go under. If you'd like to check out their situation further, go onto their website, download their latest report and go to the balance sheet. Take the cash on hand figure, subtract any monetary debts (loans both short term and long term) and then divide what's left by the number of shares outstanding. I think you'll find that there's a reasonable amount of cash per share after repaying all debts.

I wouldn't like to predict what will happen to the company's share price in the short term, however, I'm personally looking to pick these up over the next 6-9 months with the hope that any recovery in world construction will flow through to base metals prices and see the likes of OZL move north east once again.

[Pumba]

i have some shares in ozl and things seem to be going pear shaped....any advice?

What price did you get in at Pumba?
I've been watching OZL since they formed, as I was previously following Zinifex and Oxiana.
The problem for OZL at the moment is the significant fall in base metals prices, in particular Zinc and Copper. It's likely that the price of both of these will stay low throughout 2009 as there is unlikely to be any significant recovery in the US, UK and European housing market in the near term, which will also impact on growth in China and India. So there you have a significant fall in demand for both of these base metals. Stockpiles of both have also been rising significantly on both the London Metals Exchange and NY exchange.

OZL does have a very strong balance sheet. the company has loads and loads of cash ($300m at last check) and very minimal debt. So they're unlikely to go under. If you'd like to check out their situation further, go onto their website, download their latest report and go to the balance sheet. Take the cash on hand figure, subtract any monetary debts (loans both short term and long term) and then divide what's left by the number of shares outstanding. I think you'll find that there's a reasonable amount of cash per share after repaying all debts.

I wouldn't like to predict what will happen to the company's share price in the short term, however, I'm personally looking to pick these up over the next 6-9 months with the hope that any recovery in world construction will flow through to base metals prices and see the likes of OZL move north east once again.

thanks for the advice. i had been watching ozl for a while too and i have had a few cracks at them and managed to get my average price down to only $1.25! i am unsure if i should continue to bring my average price down or cut my losses and get out now or try and wait it out. currently thinking the last option.... i also dont really understand the current price freeze? why do this? and what do you think the price will do once it is unlocked?

i have read recently tho that the company owes alot and the loans are starting to run out. they are having trouble refinancing and the poor aust dollar is not helping. i am led to believe that they are considering selling prominent hill, this is concerning as it is there best asset. it seems like it wil lbe 12 months before metals start to turn around at a minimum.

however as you suggested if the company is unlikely it go under it may be worth waiting it out for 12 months....

[devilsadvocate]

i have read recently tho that the company owes alot and the loans are starting to run out. they are having trouble refinancing and the poor aust dollar is not helping. i am led to believe that they are considering selling prominent hill, this is concerning as it is there best asset. it seems like it wil lbe 12 months before metals start to turn around at a minimum.

however as you suggested if the company is unlikely it go under it may be worth waiting it out for 12 months....

They are in a voluntary suspension while they try to secure rollover debt funding. This is a bit of a concern, however, I doubt it will see the company fall over. The weak AUD and base metals prices isn't helping.

You're right, if they have to sell Prominent Hill, their prospects aren't fantastic, as that's a cracking tenement.

It's a bit of wait and see until their shares are unsuspended on Dec 29.