ASBPA 1 Year Chart With interest rates on the rise for lending and investing because of impending inflation and a flight to less risky cash investments like bank term investments the stocks ASB Capital No 1 Ltd [ASBPA.NZX] (1 year chart above)and ASB Capital No 2 Ltd [ASBPB.NZX](1 year chart below) might be worth a second glance. These stocks offered by the ASB Bank basically mirror what the company offers for term investments plus an additional margin for taking a slight risk on any possible capital losses through sharemarket fluctuations. These two stocks have both been punished in terms of capital losses with term investment rates basically below the current inflation rate when tax is removed with the "A" shares dipping below 70c in 2009 and the "B" shares below 60c in 2009 and trading at 66c in late March. ASBPB 1 Year Chart Both stocks were issued at a $1.00 face value 9 and 8 years ago and also carry imputation credits that make them even more attractive than term investments. Over the last month or so a"A" shares have piled on 7c or 10% to currently trade 77c and "B" class shares up 8c or 12% to be currently trading at 75c. These shares look set to approach their face value over the following year as interest rates rise and will probably breach their face value as they did when they were first issued and interest rates were high. No time for patience here, get in while they are cheap. Disc I own ASBPB shares in the Share Investor Portfolio
The Share Investor Portfolio was up in the third week of June, the first time after 3 consecutive weeks of falls. The portfolio was up by 0.81% or $2188.70 on the June 10 update . For the first 23 weeks of 2011 the portfolio has increased by 13.67 % or $34891.83 . This weeks rise was due, primarily, to a 16c rise in SKC because of the winning of a contract to build a National Convention Centre. There were a number of smaller falls in insubstantial portfolio stocks and larger drops in stocks like WHS and FRE that make up a larger proportion of the portfolio in an NZX 50 that was down for the week.
The total of unspent dividends and interest in the bank as at 26 May from the 2010 - 2011 earnings years is $25382.95 at close of reporting season for 2010 and at the end of the 2011 1st half reporting year. There are also approx $55000.00 in tax credits earned from the portfolio since it began in late 2002.
Xero Ltd [XRO.NZX] stock has taken a beating since its last Share Price Alert back in January. It was noticed back then because the share price had risen 40% in less than two months to trade at $2.91 on January 12 2011. This was an over-exuberance of buying from "insider" tech heads and nerds after a more pleasing 2011 half year result. Since then though the share price has pulled back 71c to close at $2.20c or around 25% yesterday in a overall market that has gained around 15% since January. As I said in January this share price could not be sustained but of course the big pull back in share price means the company looks more attractive to those who were looking at getting in. You might expect a further pull-back as global markets look set for another down period on European debt woes so be patient if you are looking at adding this to your portfolio. Look for support at around 2 bucks but patience will be the key to a relative bargain. Share Price Alert Series
