Q: Would you reduce your holdings in Telstra if you had a good profit? And what is your opinion on Challenger (CGF) – is it a buy at $7.50?
A (By Paul Rickard): You can never go wrong taking a profit. The question is – where will you invest the cash?
With Telstra, I don’t think that you are going to see any real selling pressure until interest rates start to go up. Even up near $6.00, the yield is still relatively attractive.
I am not buying at these levels – and the next move for me is to lighten off a touch – however I am in no real hurry.
If you have a material position, perhaps you sell 20% to 25% at these levels.
Challenger (CGF) has had a great run. I am not a buyer at these levels.
Q: I have been looking at the purchase of Invocare (IVC). I like it, but is it fair value?
A (By James Dunn): Let’s look at what some of the analysts are saying.
Invocare is trading at around $11.00. On the Stock Doctor reckoning, Invocare, at $11.12, is trading 5.4% below the analysts’ consensus price target of $11.60.
On the FN Arena reckoning, the analysts’ consensus price target of $11.30, puts Invocare at a 2.7% discount.
Morningstar says Invocare has just passed from ‘hold’ to ‘reduce’ – it says fair value for the stock is $10.00.
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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