Capital Raisings
The market now appears to be finding its legs, however many believe that it has a long way to go, and this is a theory I subscribe to.
One of the more interesting aspects of the current market is the number of companies topping up their capital through raising and placements. According to market watchers, Dealogic, more than $26 billion dollars has been raised by 162 Australian companies since the start of the year.
That s good for these companies, as it ensures the long term security of their businesses. And while it does slightly dilute shareholders I think many of you will be ok with this knowing that the company they invest in is planning for the long term and protecting their investment.
Many of our subscribers have asked us if there s a way that they can profit from such activity. When you look at it a lot of the companies have been issuing capital at a discount to the current share price, however after they have raised the capital their share price has actually stayed above the issue price a great sign.
The opportunity comes when you consider that a lot of companies, after placing their stock at a heavy discount, are then issuing a Share Purchase Plan to current shareholders.
Two stocks that you may want to consider holding a small parcel in to allow you take advantage of any potential SPP offer maybe Amcor (AMC) and ANZ. There is reason to speculate that companies may be about to raise capital.
- AMC: the rumours are flying that Amcor needs to raise capital in order to complete a purchase of RIO Tinto s packaging assets
- ANZ: because it is the only bank in the top 4 yet to top up its capital reserves.
End of the Financial Year
Well it s that time of the year again, and while many investors have had a hard time gaining any headway this year there have been many that have positioned themselves to take advantage of what s to come in the year ahead.
The end of the financial year represents some opportunities to maximise your tax position, but it also requires a little bit of planning in order to avoid the last minute scramble.
Whether you invest in shares or property, now is the time to ensure you have all your prepaid interest quoted and paid for before June 30. Additionally you will want to ensure any prepayments that relate to the generation of your investment income are made. You should check this with your accountant however a lot of our subscribers are making end of year payments at the moment to lock in their subscriptions for 12 months, ensuring they miss any subscription fee increases that may occur over the next year, and also receiving the MDS Financial free bonuses.
Click here to review the special End of Financial Year offer.
The most important aspect of end of year financial planning is to ensure you speak to your tax adviser early, as it is too late to undertake any restructuring in July.
Trader Dealer Acquired by MDS Financial
From a company perspective this month has been very busy, with MDS Financial announcing its intention to acquire the 49% of Trader Dealer Online that it didn t already own.
If you haven t checked out what Trader Dealer Online can offer you from an online trading perspective click here now.
This acquisition will allow us to build solutions which allow our software subscribers to seamlessly trade Australian equities. Stay tuned for an update on how we also intend to offer CFD and FX trading from within the Trader Dealer business.
Book of the Month
This month I have reviewed the second instalment from an original Turtle Trader, Curtis M. Faith, titled Inside the Mind of the Turtles . This was great read, click here to read my review.
Keep trading, and bye for now.
Damian Isbister
Chief Operating Officer
