{"id":59978,"date":"2012-05-22T10:28:33","date_gmt":"2012-05-22T00:28:33","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2012\/05\/22\/rudis-response-a-good-investor-is-a-contrarian\/"},"modified":"2012-05-22T10:28:33","modified_gmt":"2012-05-22T00:28:33","slug":"rudis-response-a-good-investor-is-a-contrarian","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2012\/05\/22\/rudis-response-a-good-investor-is-a-contrarian\/","title":{"rendered":"Rudi’s Response: A Good Investor Is A Contrarian"},"content":{"rendered":"

\n\tBy Rudi Filapek-Vandyck<\/span>, Editor FNArena<\/span> (currently traveling abroad)<\/p>\n

\n\tThis week's Weekly Insights analysis triggered the question below from FNArena<\/span> subscriber Stephen Sheldon. I thought I'd share my response with all other readers and subscribers. Non-paying members will receive Monday's Weekly Insights story on Wednesday via email, as per usual.<\/p>\n

\n\tQUESTION:<\/strong> Hi Rudi. I really enjoyed your well-considered article today. Are you still a fan of BRG<\/span>, TCL<\/span> and AAD<\/span>? And, for that matter MND<\/span> (will they be affected if the miners pull back on investment?) and ASZ<\/span>?<\/p>\n

\n\tANSWER:<\/strong><\/p>\n

\n\tStephen,<\/p>\n

\n\tYou can now own a well-managed company with a fan-tas-tic<\/span> track record, offering 6% in fully franked dividends, with forecast profits growth for shareholders in excess of 20% for years (multiple) ahead at a multiple of 14.<\/p>\n

\n\tDo you think it's a buy? I'd say the answer is a firm yes.<\/p>\n

\n\tOf course I am talking about Monadelphous<\/span> ((MND<\/span>)). This shows you just how little intelligence there is when fear and irrational selling take hold of the public market. Not many people actually understand what's going on in that sector, so beware for commentators and supposed experts who are predicting gloom for the services providers.<\/p>\n

\n\tThe quality names in this sector should be regarded as very good opportunities at these beaten down price levels.<\/p>\n

\n\tIn response to your questions about the other companies: have a look at the chart and the info available in Stock Analysis for each of them. While I remain supportive of all of them, you will have to teach yourself to see as to why Breville<\/span> ((BRG<\/span>)) and ASG<\/span> Group ((ASZ<\/span>)) are now too pricey.<\/p>\n

\n\tTransurban<\/span> ((TCL<\/span>)) and Ardent Leisure ((AAD<\/span>)) are dividend plays with the incorrect perception of being defensive. Well, Transurban<\/span> is, Ardent Leisure is a stock that trades on dividend support, currently in excess of 10%.<\/p>\n

\n\tWhat this means is that if and when commodities have their rally, which will happen at some point, stocks such as TCL<\/span> and AAD<\/span> will be left behind and they will become cheaper.<\/p>\n

\n\tI am in essence explaining to you why a good investor in the sharemarket<\/span> is essentially a contrarian<\/span>, not a follower of the herd.<\/p>\n

\n\tCheers<\/p>\n

\n\tRudi Filapek-Vandyck<\/span>
\n\tYour Editor<\/p>\n

\n\tIMPORTANT INFORMATION: The response above contains general and educational information only. Investors should always consult with a licensed professional before making investment decisions.<\/p>\n

\n\tTo have the correct framework for the response above, investors should read it in conjunction with this week's Weekly Insights "Resources Stocks: And What Now?", including the references mentioned at the bottom of the written story.<\/p>\n

\n\t <\/p>\n

\n\tFind out why FNArena<\/span> subscribers like the service so much: "Your Feedback (Thank You)<\/a>" – Warning this story contains unashamedly positive feedback on the service provided.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Your Editor responds to a question from an FNArena subscriber and shares his response with readers and investors here and elsewhere.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[48],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/59978"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=59978"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/59978\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=59978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=59978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=59978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}