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I have been selling a few things lately that seem a bit overvalued or look as though they have finished their run up.

And since I can't find much that I want to buy at the moment I am overall taking funds out of the market.

I have been in the sharemarket for some years. I have learned in that time that it is always good to have a bit of spare cash. Regardless of the overall market trend, every so often you get a really good opportunity to get into quality stocks at a bargain price.

If you look at the graph of any of the banks for the last five years or so you will see what I mean. Or even just a graph of the all ords.

SK I was interested to hear your similar view of the market at the moment.

I applied for the extra ARG as well as the rights but since the extras were only available from shortfall of the rights issue I am not hopeful. I feel that most ARG shareholders would be astute enough to take up rights at that price. This would leave nothing over for the extras.



ADDED LATER

Just read their announcment. ARG are increasing the issue and all shareholders will get first 1000 of any extra they applied for. Jolly Good.



Cheers

LJ

Argo's announcement yesterday stated that all applications for additional shares UP TO 1000 shares will be allocated, but all applications for additional shares over 1000 will be scaled back to 1000.

Sounds like it was a popular rights issue, as most ARG rights issues and share purchase plans tend to be.

J

On the fees charged by the new listings..... anyone interested might try to get hold of issue 148 of "The Intelligent Investor". On pages 4 & 5 an article on the fee structure of the new LICs....
On page 3 a caution as regards the exercise of the options on Wilson Investment Fund...... WIL......

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SK

On the other hand, if you picked up those nice shares they handed out at $4.40 and sold them today at around $4.90 it will cover paying the Easter Eggs off the credit card very nicely.

I sold the MIR ones off yesterday. Only 11c a share profit on that one, but with several thousand shares it all adds up.


Cheers

LJ

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Thanks SK
Some good info there.

The link below gives a good overall summary of the different Lic's and the includes the mer's and outperformance fees etc.

http://www.asx.com.au/markets/pdf/MercerLICGuide.pdf

I wonder can the wil's and mma's etc outperform the old afic's and argo's enough to justify their extra fees?
Certainly the dilution when and "if" the options are exercised will not help so will take a few years to clear the options from the books?
The management will be keen to get the share price over the option exercise price so the FUM increases and therefore the yearly fee value they recieve.

Can anyone shed some light on the buybacks all these new funds are doing atmo.
I just had a look at TIF which also has a buyback in place and options that expire in Nov 04.
The max price allowed in the buyback is 50 cents and this was the option expiree price from memory.
Also the new lic buybacks have max prices above the option expiree price from memory.
Just checked WIL and the highest price allowed is $1.014 while MMA has the highest price set at $1.06.
I guess if they keep buying below the current NTA, the nta increases and the chances of the options becoming in the money are better.
Seems strange to go to the market for money to invest and then buy the shares back again.
Is this a scam to get the share price up and options exercised when they are due or a good way to increase shareholder value??

Cheers Karm

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G'day karm and SK

Thank you for an interesting and thought provoking read in your recent posts. Thank you also for the links to the ASX pages on LICs.

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