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jim101

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Jan 30, 2008
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Hi guys, I have been saving for the past six months looking to get into the stock market for the first time, I have saved 2,500 and was wondering what shares people would recommend, I am looking to invest for the long term as I see this as a platform to growing my portfolio. So I wouldn't be Serling in the next 5-10 years. I am 24.

I have been doing a bit of research and am looking at stocks around the 2-5 dollar mark I have found downer edi, aix, and invectic pivot to be a couple of option worth considering.

Would love any advice of other stock, I am willing to invest in a quality stock irrelevant of the price.

Cheer Jim
 
jim101 said:
Hi guys, I have been saving for the past six months looking to get into the stock market for the first time, I have saved 2,500 and was wondering what shares people would recommend, I am looking to invest for the long term as I see this as a platform to growing my portfolio. So I wouldn't be Serling in the next 5-10 years. I am 24.

I have been doing a bit of research and am looking at stocks around the 2-5 dollar mark I have found downer edi, aix, and invectic pivot to be a couple of option worth considering.

Would love any advice of other stock, I am willing to invest in a quality stock irrelevant of the price.

Cheer Jim
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Take some of that 2500 and go and buy some books on investing. Intelligent Investor by Graham, books on Buffett/value investing etc etc.
 
Already have/read them...hence downer edi, aix would love any other stocks people might have
 

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I'm a 24yo rookie myself, but here's my 2 cents and purely my own opinion (probably based on things Ive read though)... Don't worry about the business code, listing price etc, just start with businesses you had heard of before you started looking at charts, learn about how the business makes money and ask, will it be making more money in 10-15 years etc.

Don't look at a price range, 1000 x $1 stocks, or 1 x $1000, the only difference is the business. Maybe avoid the cents though, only because they can test your long term nerve since their 'percentage' drops and gains appear so high in the short term.
 
jim101 said:
Hi guys, I have been saving for the past six months looking to get into the stock market for the first time, I have saved 2,500 and was wondering what shares people would recommend, I am looking to invest for the long term as I see this as a platform to growing my portfolio. So I wouldn't be Serling in the next 5-10 years. I am 24.

I have been doing a bit of research and am looking at stocks around the 2-5 dollar mark I have found downer edi, aix, and invectic pivot to be a couple of option worth considering.

Would love any advice of other stock, I am willing to invest in a quality stock irrelevant of the price.

Cheer Jim
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JIM don't look at the share price, look at the market capitalisation (number of share multiplied by share price).

Also look at enterprise value which is the market cap plus debt less cash.

Look at earnings per share.

Compare stocks in a sector you want to invest by these measures and other measures rather than by a $2-$5 range.



Oh a couple if rules I run by:
1) do I know the company
2) do I understand their business and products
3) am I after dividends or growth
4) am I after a quick turn or long haul
5) never trust an advisor, broker, newspaper, journalist, mate or taxi can driver. Build up your own knowledge and critically assess their representations rather than taking them for granted.

Good luck.
 
jim101 said:
Already have/read them...hence downer edi, aix would love any other stocks people might have
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Careful with engineering companies. They are s cost plus business with thin margins.

A delay, wage increases, a poorly drafted contact or technical failure can wipe out years of profits.

Winning large contracts and building large order books can lead to a loss of focus and inability to deliver.
 
jim101 said:
Already have/read them...hence downer edi, aix would love any other stocks people might have
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Stay away from managed funds.

Buy on dips and hold your nerve. Start with some blue chips which should give some good dividends and smaller growth.

As you learn more add some growth stocks.

Ie
Build up 5 stocks of $2.5k in say
A bank (cba, nab, ANZ or WBC)
A large miner (BHP, rio)
A energy producer (electricity or gas)
A Coles or woollies
A communications company

Then consider higher risk stocks. Ie a stock like icg would have earnt you 8 times your money in a month. Equally stocks like that can Do nothing or lose your capital.
 
Hi guys,

I'm also thinking of investing, starting small, with money I can "afford to lose".
I've started by creating a watchlist of some companies I am interested in, and plan to watch for a while to see how the market fluctuates as I'm new to the whole thing. But where can you find info on what a company pays in dividends?
 
Kram said:
Nearly bought nab the other day but changed my mind at the last moment. I'm a noob but to me the big banks still seem pretty overpriced?
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with the dividend so high, it would suggest people expect the share price to remain flat or pull back.



on a separate note, my punt is interest rates will increase next year meaning the Oz dollar may have some rallies (over all the FX won't go up for long though). So backing companies that are immune or benefit from interest rate rises and FX is a consideration in 2018. Banks are immune from interest rate rises as they simply push the increased cost onto consumers. Where many other businesses can't. Same said with FX, so I'm thinking banks are a relatively safe bet.

Oh and new banking laws means they have even less competition in Oz but almost no chance of expanding overseas or new markets.
 
juss said:
Hi guys,

I'm also thinking of investing, starting small, with money I can "afford to lose".
I've started by creating a watchlist of some companies I am interested in, and plan to watch for a while to see how the market fluctuates as I'm new to the whole thing. But where can you find info on what a company pays in dividends?
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Blue chips or some specs thrown in? I just at % yield in the paper or on the net.
 

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juss said:
Eventually would like to have a diverse portfolio with both, but that will take time.
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Beauty I guess of the broker fee only being $15 on the net is that you can work with smaller amounts opposed to back in the day when it was like $50.
 
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Kram said:
So far picked up

Bank major
Energy major
Freight handling
Engineering
Gas junior
Gold exploration
Lithium exploration (inherited this)

Any thoughts on how much you should spread your money.
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It depends on your age. When your young, back your knowledge on a small portfolio that will outperform.

As you age, spread your exposure and aim for a market return with lower risk.
 
Kram said:
Gold exploration stock has been under a fair bit of selling pressure for a while and then announced a capital raise yesterday, insiders leaking it?

Engineering and gas junior started moving up nicely this week though.
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which gold play?
 
Kram said:
WAF.

Ended up going up a bit actually.
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Market Cap at $210m
I have no idea on capital cost but let’s say $250m

750k Oz of high grade gold and upside


That’s $600+ per ounce which is high but reasonable without considering upside.

If the deposit goes down another 500m or new lodes discovered, it could grow.


Good luck
 
Power Raid said:
I haven’t followed the company but really good guys driving the company. Honest, smart, hard working and simply good guys to grab a beer with.
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I got told to buy them because it is high grade, is busy drilling with lots of results and it is a takeover target. But they also said it isn't 'cheap'.

Spewing I didn't take a recommendation to buy ATS at 21c, nearly at 40c now. Although did later buy COI instead from my own reading and that has starting to go up a fair bit.
 
so the media has potted pot stocks recently, I agree hard to see it doing great things any time soon here, but it made many a people wealthy in the states! probably a timing thing for insiders knowing when legalisation eventually happens in certain parts of the country, will copy America eventually good ol straya
 
Power Raid said:
Market Cap at $210m
I have no idea on capital cost but let’s say $250m

750k Oz of high grade gold and upside


That’s $600+ per ounce which is high but reasonable without considering upside.

If the deposit goes down another 500m or new lodes discovered, it could grow.


Good luck
Click to expand...
Updated feasibility study has the resource up at 1.5M ounces, still open at depth.
Share price drifted back again but is holding alright at the current level, I think the problem a bit with it atm is the market wants them taken over and there is a bit of unrest in Burkina Faso, this is why Argonaut are a bit negative on it. Bro sat next to Richard Hyde at Kal recently and he said everything is going pretty well.
 
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