BWP and CFL

Given your restrictions on giving formal advice, I am 58 years of age and I have a SMSF in pension mode. Given my situation, what is your position/opinion on:

BWP – sitting on 43% capital, good dividends but unfranked.

CFL – sitting on 63% capital gain, good dividends and 100% unfranked

A: You have done well with both stocks.

I think both look a little over-valued, but whether they are worth taking profits on is another question. Have you got some other stocks in mind?

Sometimes, it is best to just let your profits run.

If it helps, here is the collected broker feedback.

On BWP, all brokers see it as overvalued. Sentiment is -1.0 (this is the most negative – ie, all brokers say sell) – target price is $2.63 – about 20.4% below the current level. As a property trust, the distribution will always be unfranked, so possibly not the best asset to hold in pension phase.

In regards to Collins Food (CKF) , the brokers like the stock (sentiment is +1.0), but they do feel it is a touch overvalued. Consensus target price is $3.30 – about 9% below the current price.


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