Restart

Ok, time to restart this thing. I'm all inspired by reading this Buffet book. So a change in tack, I'm going to move through the ASX analysing company by company... focussing on value. Key points to consider:

• Debt levels
• ROE
• Business type
• Competitors
• Mangement

So we will see how it goes.

Rinker

So I tried to close out this rinker thing, but I ended up having trouble with etrade all day, they wouldn't let me trade on my margin loan. So I ended up not being able to trade, despite trying.

And what's happening with BXB? I don't understand why they are being hit so hard. Apparently its to do with their currency exposure...

Rinker

Well yesterday was spent trying to get 2,000 Rinker (RIN) shares to sell into the offer. Cemex are paying AUD19.5 for the first 2,000 shares of each investor, before it reverts to a USD denominated deal. Because of the movement in the USD/AUD rates there is a small arbitrage between the current price and the offer price. So for the cost of a little interest there is AUD1.5k-2k to be made. But I didn,t have much in my loan account yesterday and the time it took to transfer enough in (overnight) meant that I missed yesterdays price. It's now up AUD0.18 which is still ok, but not yesterdays price. The stock is delisting tomorrow so I guess its today or tomorrow (possibly) so we'll see how it moves.

Target Portfolio Mix

The graph above outlines the current weight v future weight and also includes a target weight. As you can see we are making a choice to be overweight Materials & Healthcare and underweight Financials, Industrials, Consumer Staples & Discretionary, Energy Utilities etc.

IPO - Wind Hydrogen Ltd

I'm in the process of buying 25,000 Wind Hydrogen Ltd shares in their IPO. They are involved in the development of wind farms (in Scotland & Australia) combined with hydrogen conversion to store the energy for consistant output levels. Key driver behind the investment is that green energy will continue to become more prevalent and as the carbon/environmental cost of power is understood and passed on to the consumer. In general its fairly speculative as they have no cash flow producing assets as yet. It's all in development and IP. But its a small portion of our portfolio.

Current Portfolio Weights 11 July 2007

To the above is the current weighting of our portfolio. As you can see it's heavily weighted to Materials & Industrials. We are holding approx 20% in BHP, 19% in BXB (which we increased yesterday), 10% in QAN & WSA respectivley.

We are looking at BOL, BPT to increase industrials and energy exposure. MTS for consumer staples. BBW, AEZ and a whole stack of healthcare are on the cards over the next few months.

Starting Out

Opening day hey:

This blog is going to cover our personal investments, we already have a portfolio but we are substantially increasing our exposure to the market.

Please note we are just personal investors, not professionals.