FOX mystery and Ron’s yield-type portfolio

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Question: With the pending delisting of Twenty-First Century Fox (FOX) from the ASX, I would have thought that the share price would come under some selling pressure as it gets closer to the delisted date, yet the stock price is going up.Is there some (unknown) reason for this?

Answer (By Paul Rickard): I think there may be other factors at play that are more important, such as the operating performance of the company. FOX is a global company – most of its shareholders (including the Murdoch family) are domiciled in the US, and as FOX is “dual listed’ on both the NASDAQ and ASX, there is arbitrage opportunity if the price gap opens up too much.

As a US company that reports in US dollars, currency changes are also going to impact the effective Australian dollar share price. Another factor that is possibly impacting the price of B class shares is that FOX is currently undertaking an on-market buyback.

Question 2: I have been following Ron Bewley’s How to build a portfolio with great interest. In his latest article, he mentions he is building a new “yield-type portfolio”. Any chance he will inform us of the specific stocks he includes in it? Weighted if possible.

Answer 2 (By Ron Bewley): Thanks for you enquiry. I am still testing various aspects of the software I am writing to generate the portfolios and then monitor them.

I need to be able to produce the portfolios with minimal human input to minimise the possibilities of error. I am close but not yet there.

I also have to check with legal what I am allowed to publish and with what disclaimers. I am shooting for being ready by July 1.

Each month I let the system rip to see if it comes up with any anomalies or surprises and cross check with hand calculations. I have found the results to date really promising so I’m keeping going!

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.

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