Four wires that caught my eye

Patrick Poke

Livewire Markets

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Telstra’s looming earnings hole

In the next few years, Telstra has a $1 billion earnings hole to plug – no easy task, especially for a mature company with limited growth options. In the typical Forager Funds fashion, Daniel Mueller asks some tough questions of Telstra. “Why would management be throwing resources at robot farming equipment? And for that matter, why does Telstra employ a Chief Scientist?” It seems ‘clutching at straws’ may be the best description. The question follows: how sustainable is the dividend? That’s one to ponder, but in the meantime, read more about the earnings hole and how management intends to address it.  (VIEW LINK)

“Not a chance” of materially higher rates

In case you missed it, both equity & bond markets sold off heavily late last week in the US, with the sell-off spreading globally through the early part of this week. There’s been a lot of discussion on the site this week as to whether to worry, what it means, and who’s affected. In this Livewire Exclusive, we caught up with Jamieson Coote Bonds Executive Director, Charlie Jamieson, to get an understanding of what’s really happening, and what it means for Australian equity investors. (VIEW LINK)

Where do Australia's top female fundies invest?

There is a significant body of research and evidence supporting diversity among investment decision makers is good for financial performance, builds a more progressive corporate image in the eyes of a consumer. and leads to less staff turnover. Livewire is proud to partner with women’s finance site, Financy, to bring you this special report. Bianca Hartge-Hazelman interviews 4D Infrastructure’s Sarah Shaw, Altius Asset Management’s Vanessa Thomson, and Blackrock’s Joanna Nash. They share their favoured sectors and stocks, and some great tips on investment strategy.  (VIEW LINK)

Nothing free about LIC options

One of the popular selling points for Listed Investment Companies (LICs) when they float is the ‘free options’ that are included in the deal. Great – a free lunch, right? Unfortunately not, explains Gareth Brown from Forager Funds.  Due to the dilution caused when/if the options are exercised, “anything you gain on the option, you lose on the stock.” If you own a LIC with company-issued options, or are considering buying one, this is essential reading.  (VIEW LINK)

Chart of the week

National data masks cooling Sydney housing market

National house prices have grown by 2.5%-6% in the last year - depending on your data source. However, this masks the changing Sydney market, where annualised growth has ground to a halt, slowing from 20% to 0%.

[House prices by state.PNG]

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Patrick Poke
Patrick Poke
Managing Editor
Livewire Markets

Patrick was one of Livewire’s first employees, joining in 2015 after nearly a decade working in insurance, superannuation, and retail banking. He is passionate about investing, with a particular interest in Australian small-caps.

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