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October 16, 2017

The relationship between bonds, interest rates, and stocks

What are bonds? When you purchase shares, you are essential purchasing a part ownership in a company. Bonds on the other hand are debt obligations. A buyer of a bond is a lender, they are lending their money to a company or government in exchange for interest payments. A buyer of a $1,000 bond with a coupon of 5 percent
October 11, 2017

Determining an investment opportunity with Mirvac

After reporting well in August, Mirvac (MGR) is now trading near multi-year highs. Do the fundamentals stack up at these pricing levels, and what are the charts suggesting for an entry level? The fundamental viewpoint Mirvac’s EPS growth guidance of 6-8% for FY18 implies another year of strong EPS growth. While there are market concerns around a weaker level of
October 10, 2017

Packaged for success

This post formed the basis of an article that appeared in the October 2017 edition of the ASX Investor Update on 10 October 2017. Michael Gable is a regular expert contributor to the ASX. You can access the ASX version of the article HERE.   There is a small group of companies in our market that can display defensive characteristics but still go on to
October 9, 2017

Advantages and Disadvantages of ETFs

ETFs gained increased popularity in recent years and are becoming widely used by investors. This has been especially true after the GFC. Despite their popularity, they have not been around as long as managed funds. This means that investors are still unaware of how they work. ETFs are financial products that are similar to managed funds except you can buy
October 9, 2017

Video: Is there more upside in Galaxy shares?

Michael Gable is an expert guest commentator for the Finance News Network. This video is dated 9 October 2017. Click on the image below to access the video:   Did you like this video? Share this page on Facebook and Twitter! Sign up to our newsletter. It comes out every week and its free! You can leave your email with us via
October 3, 2017

Get ready to buy the dip in Santos

Sentiment towards Santos has improved a great deal recently. The company has reduced costs and the price of oil seems to have stabilised for now. The interim update in August even managed to beat expectations. We looked at Santos a couple of times in the last few months, noting the bullish nature of the chart. The rally in the last
September 29, 2017

A beginner’s guide to writing covered calls

INTRODUCTION A call option gives the holder the right to buy a security at a certain price (the strike price) by a certain date (the expiry date). Writing (selling) options is a strategy used to protect portfolio’s and also pick up additional income. It is ideal for long term investors who want to protect their shares without selling them. Only
September 29, 2017

What you need to know about dividends

Dividends are essentially excess profits the company has decided to distribute to their shareholders. Companies are not obligated to pay out dividends as they may decide to reinvest their profits back into the business. Otherwise they may not have been profitable enough to pay out any dividends. Established companies are more likely to pay out dividends than start-ups. The reason
September 27, 2017

Xero is about to rally even higher

Xero (XRO) is a chart that we have followed a few times this year and the stock continues to climb. Price action is once again indicating that there from current levels, we should expect even more upside for Xero. It first came to our attention in April when it finally broke through resistance in the mid $19’s. This breakout was
September 25, 2017

Video: My latest view on the CBA chart

Video: My latest view on the CBA chart Michael Gable is an expert guest commentator for the Finance News Network. This video is dated 25 September 2017. Click on the image below to access the video:   Did you like this video? Share this page on Facebook and Twitter! Sign up to our newsletter. It comes out every week and its free!
September 22, 2017

The Pros and Cons of Share Purchase Plans

Investors in the Australian share market at some point or another have been offered a Share Purchase Plan. Companies offer Share Purchase Plans to raise capital to fund a new acquisition. The definition of a Share Purchase Plan is an offer to existing shareholders to purchase further shares. This is usually at a discounted price. Shareholders can purchase up to
September 20, 2017

Transurban (TCL) chart to take the scenic route

There’s a lot to like about Transurban (TCL), but not the way that has traded in the last few days. This begs the question that, despite all the pundits loving it, do we buy it at $12, or can we get it closer to $10? Imagine that, grabbing TCL when it is trading near $10 with a yield of over
September 18, 2017

Video: These stocks are ready to rally

Michael Gable is an expert guest commentator for the Finance News Network. This video is dated 18 September 2017. Click on the image below to access the video:     Michael Gable is managing director of Fairmont Equities. Sign up to our newsletter. It comes out every week and its free! You can leave your email with us via the form on
September 18, 2017

What type of stocks to buy in a high inflation environment

The world has seen unprecedented levels of money printing since the depths of the GFC. Along with record low interest rates, many investors are concerned that this can only lead to one thing – inflation. When you experience inflation, the value of investments (such as cash) may be eroded. It is therefore important for you to recognise which asset classes
September 18, 2017
share tips

Share tips – 18 September 2017

Michael Gable is an expert guest commentator for the stock market newsletter thebull.com.au. This post is an extract from the newsletter dated 18 September 2017. You can access the full version of the article HERE. Buy Recommendations GXY GXY is on the move and a few weeks ago it finally broke the downtrend which had been in place all year. We should now