The Intelligent Investor's Ask the Experts

Telstra Corporation Limited

Wed, 10 Mar 2010 16:57:30 +1100

I recently sold TLS as advised (I agreed with the sentiment) Yesterday a thoughtful piece in the SMH had me wondering whether there is value in TLS at some $ level. At some $ level the risks/price achieves parity and below that $ level there is upside potential. Clearly there is a price where this company is a buy, while not urgent I suggest its worth considering the parity level plus what/if (ie speculate) the NBN payment (4BN, 8BN, 12....???) may do for the company.

Sigma Pharmaceuticals Limited

Wed, 10 Mar 2010 16:42:33 +1100

Are you able to let us know how long Sigma can remain suspended from trading without providing any information?

Oroton International Limited

Wed, 10 Mar 2010 16:20:59 +1100

Gents, I assume that you have never covered the Oroton Group (ORL) because of its relatively small size. Yet the company's recent figures are compelling and I expect are a sign of things to come. Although it appears to have navigated through some choppy seas through 2004 to 2006, its results since then have been impressive. It has terrific ROA, a key measure for all retail companies, negligible debt and has had solid earnings since 2007 - a testing time if ever there were one - which I think was probably due to the moat-like strength of its upmarket brands. Any chance you'll cast an eye over it at some stage? Justin

Sonic Healthcare Limited

Wed, 10 Mar 2010 16:03:39 +1100

I've been looking more closely at Sonic Healthcare and my big concern is that it resembles a regulated utility. Regulated utilities are prescribed an allowable, guaranteed rate of return by the government. Although there is no explicit regulated return with SHL, government policy shows that good performances is "punished" by a reduction in the Medicare rebate. I believe this limits the potential upside since even if the company could somehow double EBIT margins it is likely that the government would further cut pathology funding leaving very little for the shareholders. On the other hand if the company makes a mistake at the operational level I can hardly envisage the government stepping in with a helping hand. Thus in some ways I believe it takes the worst features from regulated utilities (i.e. limited upside potential) whilst omitting the best features (i.e. Guaranteed minimum rate of return). What are your thoughts on this?

Little World Beverages Ltd

Mon, 8 Mar 2010 18:00:41 +1100

A question for Greg re LWB. I bought Little World on the strength of Greg's "recommendation" at an II seminar in Melbourne 3 years ago and have enjoyed watching its development (and drinking its product). Its share price has recently shot up and the dividend doubled. Is it time to take part profits? If its not too personal, does Greg intend to hang on to his shares? Thanks for the original recommendation, Greg.

Bravura Solutions Limited

Mon, 8 Mar 2010 10:19:22 +1100

Hi I know you guys dont look at companies with market cap less than 100MM but if you dont mind taking a quick look at BVA. The company is winning contracts and theres potential upside long term. Thanks guy

Sonic Healthcare Limited

Fri, 5 Mar 2010 17:17:30 +1100

Will KRUDDS announcement today re Commonwealth overseeing regional hospital clusters facilitating "efficent services" impact on service providers such as SHL? Do you envisage national tendering for provision of hospital services?

Woolworths Limited, Harvey Norman Holdings Limited

Fri, 5 Mar 2010 16:50:05 +1100

Hi, My portfolio currently needs some diversification. I would like to buy some stocks that are going to potentially provide my portfolio with some stability and hopefully reduce the risk. Two large companies that I have in mind are Woolworths and Harvey Norman. Both perform quite well and have managed to overcome the financial crisis reasonably well. As the future hopefully consists of confidence within the economy, i'd hope that either of these two shares would continue to perform well. Would you agree with this? My focus is on a stock that will be beneficial over the long term. Not an extremely long horizon but definitely sticking clear of a short term speculative buy. I am having trouble determining which may be the better option with regards to dividends and reducing the risk in my portfolio. Are you able to help me and/or provide me with any knowledge with how to go about the selection of either of these two stocks? I have tried to gather a much information from your reports as possible, but still having difficulties. I believe Woolworths may be expanding into hardware, would this therefore increase the annual return for WOW? Would this impact the decision between the two stocks? Thank you very much Penny

Multiplex SITES

Fri, 5 Mar 2010 10:15:20 +1100

mxupa ,do you still hold same opinion as per last comments in late 2008 or do you feel they might be a safer and a more viable bet now that they have been stepped up.

RHG Group Limited

Thu, 4 Mar 2010 10:31:51 +1100

Geoff Kinghorn bought 3.5m RHG shares at 56c when the day's price didn't dip below 62c. That's bit over 1%. Had the seller put them on CommSec the share price would probably have tanked, so there is an arguable "split the difference" price-deal here. Having said that, remember we are talking about the same crowd who (a) masterminded surely the ASX's worst ever float of any size and (b) talk airily of getting back into mortgage origination, something about which they clearly - with hindsight - know nothing. Perhaps we should assume the worst and hope for the best.