ASX Shares What's looking cheap on the ASX?

I might wait till the dust settles on next months fed interest rate rise and start buying into VAP again

 

Blue chip isnt a very useful term.

It used to just denote price or size, ala the biggest chips on the poker table. Then it got confused with quality or something.

The problem is, if you invest in whats perceived to be the best quality companies, youll pay a hefty price to do so (because the market has already valued them highly). And probably stand to undergo a correction at some point. Look up the "Nifty Fifty" stocks and see what happened there in the past.

I think a strategy of buying what people call blue chip shares is more likely to underperform, on balance, over time.

 

If you buy them without any reference to price then I would agree.

My understanding of “blue chips” is quality and safety – investors who focus on those two would likely to do well, “underperformance” or no.

 

The difference between AP Eagers and Automotive Holdings has been truly astounding.

An excellent example of sticking to what you are good at.

 

OB, could you please elaborate what did you mean by this? Really keen to understand the auto industry too. I thought electric cars are gonna kill the traditional manufacturers moving forward.

 

AP Eagers and Automotive Holdings Core business is car dealerships (as opposed to car manufacturing).


Over the past 5 years Automotive Holdings has destroyed a bunch of investor capital by building out a cold logistics business – hard to see how that fits into their core competency.


AP Eagers have instead used capital to continue to acquire car dealerships and have grown earnings/dividends as a result.


As to whether electric cars will affect their business model? I have no idea.

 

You do know AP Eagers is AHG's biggest shareholder.

 

This is a very good point!

Substantial Shareholder list at 16/09/2016:
Shareholder name: A.P. Eagers Ltd and its associated entities
Share Holding: 64,870,058
% Shares Held: 19.56

 

Last week...opened my nabtrade account abd transferred my hin and holdings from commsec to nabtrade. 3 months free trade and after that $14 something compared to $19.95 of commsec.

 

But how easy to use is the platform compare to Commsec? e.g. Watchlist, research etc.

 

@inspiredbyprop , i have just logged in on my phone to check and created wishlist. so far it's ok. but i haven't used it 100% to comment on your question. will let you know.

I did check online comparison through google and there are cople of things which are different.

I want to rearrange my portfolio....that is the Main reason for me to switch.

 

I'm very aware. Suffice to say AP Eagers is not a fan of the logistics business either. They used it initially to get exposure to NSW and its worked out ok for them.

 

If gambling is your thing, MTA still looking cheap. Might have a big December. Total spec, not advice, dyor etc.

 

I'm up 25% on your "not advice". And I know you got in waaaay cheaper than I did

 

I doubled my holdings this week. Still up about 40% overall. It's still a non-core 'investment' but I have a big position now. I like the company but am definitely holding as much as I'm comfortable with. We are 1-2 weeks away from some big announcements and becoming a ten bagger for me. Or not!

 

Interesting... as per PM, I will keep an eye on the chart, and see what happens.

 

They are announcing their Definitive Feasibility Study in early December. Lots to look forward to.

Pure speculative.

 

Bought 20K of TCL a couple of weeks back. Up @ 8% already. Should have bought 200K

 

You posted this on Nov 10. I purchase 20K of TCL on Nov 14. Up 8% by Nov 25.

Counter disclaimer - I am just taking a 20K punt

 

You'll be enjoying another 10% this morning then