The question is what do investors do in the face of impending doom when the Labour Party stumbles across the line to win the 2017 election. Well they've started it already. They have stopped buying Auckland International Airport Ltd[AIA.NZX] its moving backwards with a DIV coming, Auckland Airport growth is bound to stall under a Labour Govt. Labour's stated aim is to at least halve immigration and I think it will go completely the other way within 2 years - people will not want to stay. The other thing Labour is going to introduce, a $25 dollar new tax for travelers to this country is going to have a major impact on tourists. This will clearly impact further on Auckland Airport, it clearly has already. Uncertainty certainly plays a part in it, there's no doubt about that but reality plays a big part as well and Labour's focus of their extra spending is on the unproductive parts of the economy. That has been the way of the Labour Govt's from year one. But you don't get economic growth from putting taxpayer money into things like "higher wages for everyone" it is simply a blight on the taxpayer and business as a whole. You've got to be focused on what you as an individual can bring to the table rather than Labour's view that whats on the table is mine and that extending the table through extra taxes and more Govt borrowing is the way to go. Its not. You've got to wonder about those companies that have got a high component of transport costs, Like Freightways and Fletcher Building. These companies have come off recent highs and they are nervous about what will happen when Labour gets into power. Every company on the NZX is effected by the probable change of Govt. I'm not worried about my investments. I will take the time to look at each company in the Share Investor Portfolio and buy more when they get cheap enough. That's the thing with long-term investing in shares and changes in Govt. You make your serious money in times of gloom and (like we will be heading to under a Labour Govt) and make even more in times of boom (like we are just coming off now - under National). Either way I'm not disturbed. AIA @ Share Investor Auckland Airport: Look Before You Leap Auckland Airport: Its a Buy AIA: To Buy Now Or Not To ? Share Investor Q & A: Auckland Airport's Simon Moutter
Auckland International Airport Ltd [AIA.NZX] has a dividend coming of 10.5c fully imputed at the company tax rate of 28% and due to those on the register at close of biz on the 6th October 2017. Can you get this dividend and protect your capital base at the same time. No, is the answer but you stand an almost unique chance of getting the Div plus capital gains anyway. That has been my experience over the years of trading this baby in and out of lulls, bulls, bears any any other term you care to mention. I currently own 2000 shares based on just this and have done for 3 reporting periods. So if your game and really want to have a go get in now. At sub 7 bucks this one has 7 plus bucks written all over it before the Oct 6 cut off. Weather you sell into the share price increase or stay around and collect the Div you cant lose either way. I, if I had money, I would buy today.
Auckland International Airport Ltd [AIA.NZX] is ripe for the picking of dividends right now. The last day for qualifying is 21 March. The dividend is 10c per share and I obtained another 1000 for my short term portfolio to take me up to 2000 so far. Not really concerned about the really short term changes in the daily value and probably will release them for somebody else after the next profit announcement in August. Will definitely release them when they get close to 8 bucks. This really is a no brainer. An excellent long term prospect and a good short term trade all day long. AND, briefly AIA shares although might sort of wait a bit to see if it will go lower - this bit I wrote yesterday came true sooner than I thought and I bought them for $6.995.
This year among the brokers Fisher & Paykel seems to be the winner. Where were they in the early part of this decade when they were trading @ 1.80? Just wondering. The rest can be put in the same category. And keep this in mind:
Pick these stocks on dips in their share prices - they ALL have dips. AND - do your own research - lots of it. It makes things interesting as well. Next year could be another one like we have already had - some dips but mostly up - or it could - drop but be mostly down. Whatever it is it will provide opportunities for all of us to make money. Share Investor's 2017 Stock Picks
Blue chip and small cap stocks lead the list of expected market performers for the coming year
F&P Healthcare is expecting 17pc increase in growth in the coming year. Photo / Greg Bowker
Some undervalued "blue chip" companies and a selection of small cap stocks dominate our broker picks for the year ahead.
Fisher & Paykel Healthcare gets the tick from four firms -- Forsyth Barr; Hamilton Hindin Greene; First NZ Capital; JBWere -- making it the most popular choice in an unusually diverse field.
Despite being perennial favourite the stock underperformed in 2015, but there appears to be a strong view that it now represents good value.
"[F&P] has come back significantly from all time share price highs, having reached a mid-year high of $10.90," says Hamilton Hindin Greene's James Smalley.
"We believe this has been on the back of concerns regarding litigation with competitors and a potential negative impact on their sales into the US. We see some headwinds due to production facilities being based in Mexico, and the incoming Trump administration signalling an increase in protectionist policies."
But, he says, the sell-off is an opportunity, given the short-term nature of the issues, to buy in to a quality business.
Rickey Ward, of JBwere agrees.
"F&P Healthcare is a genuine growth company with a track of record delivering strong earnings improvement from offshore avenues.
"We do not see this changing, with earnings growth approaching 17 per cent this coming calendar year," he says.
"Potential taxation concerns around Mexican manufacturing following President-elect Trump's success have been exaggerated."
Another mature company, seen as undervalued given it retains strong growth potential, is transport and logistics group Mainfreight.
It is picked by three brokers: Craigs Investment Partners; Hobson Wealth Management and JBWere.
"It's is a well-managed business with global growth options. Leveraged to robust economic growth," says Craigs Investment Partners head of research Mark Lister.
"Mainfreight should be well-insulated from increasing interest rates and has a very strong market position in New Zealand, which should continue to benefit from strong local growth, but it also offers some international exposure given is growing operation in Europe, the US and Asia."
JBWere's Ward notes: "Trading on 20 times earnings means they might appear expensive, but good companies tend to, and MFT is a good company."
From there several stocks feature twice in the 2017 picks.
Contact Energy also merits three picks, from JBWere, Craigs and First NZ.
"Contact has lagged its peers in recent years, so it looks like the value play in the sector," says Lister. "It has the potential to increase its dividend payout, and the retail strategy could bear fruit in 2017.
We also like the idea of hedging our bets a little, by including one yield stock.
Mark Lister, Craigs Investment Partners
"While rising interest rates could be a headwind for companies in the utilities sector generally, we see a number of company-specific reasons why Contact could still deliver reasonable returns.
"We also like the idea of hedging our bets a little, by including one yield stock."
Craigs and Hobson both pick Restaurant Brands, very much with an eye on its growth potential following a major investment in Hawaii.
Restaurant Brands has offered US$105 million ($151m) to buy Pacific Island Restaurants, the largest fast-food operator in Hawaii and the sole Taco Bell and Pizza Hut franchisee in Hawaii, Guam, and Saipan.
"Restaurant Brands has a solid track record, capable management and offers stable earnings," says Lister. "The core New Zealand KFC franchise will see free cash flow steadily increase in the coming years, enabling the company to invest in growth areas like KFC Australia and Carl's Jr."
Another other stock picked by two brokers was dairy company Synlait; picked by MSL very much in growth mode and more indicative of the smaller cap stocks in the game this year.
The company has a market cap of $100m and won best growth strategy at the Deloitte Top 200 awards. It has invested heavily in the past and is well positioned to cash in on China's demand for infant formula.
The Fonterra Shareholders fund is a favourite of Craigs and JBWere.
"We continue to see underlying operational improvement in FSF. A change in compositional mix, with a management team committed to addressing inefficiency, has seen tighter controls on costs and capital expenditure, leading to margin expansion," says Ward.
Lister notes that rising dairy prices represent a headwind in some respects "however, the business transformation is well underway and recent operating results have been impressive, the company is reducing its cost base and improving efficiency, while the period of heavy investment has come to an end.
"We believe these factors are yet to be reflected in the share price, which offers attractive value," he says.
Beyond these four the brokers have cast the net wide.
Other stocks that fit the mould of "blue chips on sale" might include Auckland International Airport , picked by MSL Capital Management; Tourism Holdings and Infratil picked by Forsyth Barr; Contact Energy picked by Craigs and JBWere.
Hamilton Hindin Green has a number of similarly high quality NZ companies that look like good value at the moment, says Smalley.
It also included Chorus, Genesis Energy and Ryman Healthcare with Opus international as its wild card.
"It's about buying quality businesses when they are on sale," Smalley says.
Education group Evolve rounds out the stocks to receive multiple picks.
Ward says his team see Evolve as well placed to benefit from further government moves to support mothers in the workforce and notes the trend has similarities to the retirement sector several years ago.
"Acquisitions, developments and cost-out initiatives will see strong near-term earnings growth from a roll up growth opportunity," he says.
Beyond these companies there are plenty of small cap stocks and less familiar names in the mix this year.
MSL picks Green Cross Health, a small player it has chosen for a second year in a row, in what managing director Andrew McDouall describes as "a hot sector benefiting from an aging population, regulation and industry structure changes."
Vulcan Capital is picking natural healthcare products company Promisia Integrative as well as cancer diagnostics company Pacific Edge and NZ Salmon.
