Which Shares to Buy in Times Like This? Corona Virus, Low AUD, Low Inflation? $10k, $2500x 4 Shares, 5 Year Investment Time

Aerith-Waifu on 29/02/2020 - 00:02
Last edited 29/02/2020 - 00:04

Ok abut 2 years ago I started this topic:

https://www.ozbargain.com.au/node/393706#comment

i think its a good time to relive the topic again with another 10k, same rule, $2500 each for 4 Australian Stock with a 5 year investment timeframe. Only thing changed is we are now in a different world due to many of the things that arent here 2 years ago, Coronavirus, high employment, low inflation, shockingly low AUD……

At the moment I am keen on the buying these 4 stocks:

1: JMS (Excellent Dividend Yield, long mine life span, still at least 80 years mining left, good defensive play)

2: KTD (Two world class factories ready with no debts, already have deals with Walmart, strong debut for SuperCube which sells at Woolworths, may soon get into infant formula which will add huge value to share price)

3: New Crest Mining (Strong defensive in times of uncertainly, looks to me its been oversold, prices are now down almost 33% from $38 achieved 6 month ago, may have more to fall but i think its a good entry at around $22 - $23)

4: A2M (Too me this is on the high side however with the recent expansion to UK and USA I believe this will be $30 in the future. It has such strong monopoly on its products there is no second player even getting close to it, with now BAL and Lions Dairy been taken over sooner or later A2M will be on the TO target I think, this has risks but I think anything around $13 - $15 is a good buy)

What do you think of my top 4? Please write yours and the reason behind it, dont just write the ASX code without the reason behind your investment.

Financial

Comments

    • Aerith-Waifu on 29/02/2020 - 00:16
      +4

      Well I dont work for Westpac I am afraid:)

    • CyberMurning on 29/02/2020 - 01:13

      You meant Maria Mercedes?

      • Aerith-Waifu on 29/02/2020 - 01:49

        The Aussie actor?

      • [Deactivated] on 24/03/2020 - 07:09

        Nah, Corby.

  • dcep on 29/02/2020 - 01:30

    how are they doing ?

    BUB
    FMG
    MYX
    ISU

    • Aerith-Waifu on 29/02/2020 - 01:48

      I didnt end up buying all these shares, I end up buying the following:

      DXN (Down 70%-)
      FMG (Up 253%+)
      BUB (Up 26%+ Was up 125% at one stage)
      ISU (Down 43%-)

      • dcep on 19/03/2020 - 12:08

        DXN halted trading last few days

        This morning got dumped to 0.016

        Get in now ? or it's on last breath getting delisted ?

  • OzBugman on 29/02/2020 - 03:18
    +3

    time to invest in the cremation industry

    • Hithere on 29/02/2020 - 07:29
      +9

      Careful, you might get burnt.

      • Aerith-Waifu on 29/02/2020 - 19:44

        And turn to dust……lol

    • Ugly on 29/02/2020 - 21:13
      +3

      Sounds like a serious undertaking

    • bemybubble on 02/03/2020 - 20:09
      +2

      I did. Invocare

  • brendanm on 29/02/2020 - 09:01

    None yet, patience

    • wittyusername on 29/02/2020 - 12:01

      Think they'll still go lower?

      • brendanm on 29/02/2020 - 14:14
        +1

        Yep. The more media hysteria, the lower they go. Buy the dip.

    • Aerith-Waifu on 29/02/2020 - 15:01

      I think we will be living in the new world with the Coronavirus become the common cold.

      But I agree the time is not here yet to buy, but will be soon.

      • OzFrugie on 01/03/2020 - 00:08

        Whats ur trigger of buying again then? Ie when you'll know the dip

        • Aerith-Waifu on 01/03/2020 - 16:30

          Always wanted to invest in the long turn.

  • [Deactivated] on 29/02/2020 - 11:17
    +3

    Ive been pumping my $$$ into bitcoin and will be reitiring soon.

    • brendanm on 29/02/2020 - 14:14

      I've already retired, bitconnect made me a billionaire.

    • Aerith-Waifu on 29/02/2020 - 15:00
      +1

      Warren B once said there is no value in Crypto…….

      • brendanm on 29/02/2020 - 16:56
        +4

        He's correct, there is nothing backing it.

        • Aerith-Waifu on 29/02/2020 - 19:43

          Well let’s say there is nothing backing it yet. With the ever going cashless society who knows in the future……

      • armedgoat on 19/03/2020 - 15:02

        He is right. But anyone thinks that cryptocurrency would be a temp solution for this financial calamity?

  • Splashtash on 29/02/2020 - 21:06

    medical industries……. are always good, esp now :D

  • 00 on 01/03/2020 - 19:09

    Zoona (ASX:ZNO) make alcohol free, long term effective hand sanitisers and surface protection that has been tested in Germany recently as effective as a protective measure for Coronavirus.

    • Aerith-Waifu on 01/03/2020 - 22:55
      +1

      Interesting indeed. Never known it existed. Thanks for sharing

  • Saulami Jedi on 02/03/2020 - 09:33

    FOD, HCT and ZNO for hand sanitisers

    Great Stocks that are unvalued at the moment - EOS, JIN, MP1, APX

    • Aerith-Waifu on 02/03/2020 - 15:33

      Crazy movement by ZNO.

      Can easily go to $3 in the short turn. Others I will look into it. Thanks for input.

    • edwardye on 22/03/2020 - 15:14

      Thanks for sharing

  • blessupnico on 16/03/2020 - 03:00
    Merged from First-Time Investor Hoping for Some COVID Benefits

    Basically have been sitting on a bit of cash since my father gave up the ghost a few years ago and thinking of getting into stocks alongside the various global debacles currently. Been looking and some hand sanitiser stocks like ZNO and FOD seem like a decent bet for a few k, but also not sure if I should be going through a third party or jumping in solo. Vanguard also seems like a decent idea considering I have no problem sinking money into a long-term investment (I'm 25).

    Also interested in putting some money in BTC with the low but we will see about that. Obviously the lows are set to sink lower in the coming days, so the main decision lies in using a third-party or going solo - any recommendations?

    • Euphemistic on 16/03/2020 - 05:50
      +5

      Hand sanitiser stocks will be a short term thing, they’ll settle back down once this blows over.

      General stocks are low and likely to climb back to where they were over time. How long? Anyone’s guess.

    • TEER3X on 16/03/2020 - 06:08
      +1

      Yeah because the market hasn't already priced in the benefits to hand sanitizer stocks. Smh.

      If you want to gamble, you'll need to pick where the market will bottom, before things start to pick up, before the market.

      If you think the market has room to fall, then buy that share (forgot what it's called) that goes up when the us stock market falls.

      Unless you're a day trader, gambling isn't for you. If you have cash, invest it in a well diversified portfolio.

      • JimmyF on 16/03/2020 - 09:16
        +2

        Australia's market will fall again very soon……… We haven't even seen the beginning of the worst for this virus here yet.

    • popsiee on 16/03/2020 - 07:14
      +2

      I wouldn’t touch BTC at anytime during the crisis. People are selling all assets including gold . Puts only .

      • [Deactivated] on 22/03/2020 - 09:35

        Selling gold in times like this, huh crazy.

    • Bid Sniper on 16/03/2020 - 07:50

      TP sure fire winner

      • TEER3X on 16/03/2020 - 07:51
        +1

        Ring of fire winner

    • brendanm on 16/03/2020 - 07:57
      +1

      Are you being serious about hand sanitiser?

    • DingoBilly on 16/03/2020 - 08:00

      I think EFTs are the way for you… nothing complicated and everything else you mentioned is gambling.

      Also a general rule is that if it's being reported/known by many people then the opportunity is already lost. You'd want to be thinking which stocks are likely to benefit from stuff in a few months time that others may have missed. But then, hard to say what the future may look like.

    • OzCheapo on 16/03/2020 - 08:55

      Either EFTs or professional development. If you've been thinking about a specific skill you want to pursue (e.g. studies, languages, music lessons, golf or diving etc.,) put the money towards learning it. I've never regretted spending money for studies/to pursue something I really wanted. Only when I bought a course and never studied it.

      COVID is/has shaken the market but leave it to the money experts to make the money e.g. Vanguard. Mum and dad investors like myself and the majority of other Australians, don't possess the time, capital, experience and the skillset in sufficient amounts to act quickly enough.

      But if you insist on hand sanitisers and bitcoin…, give it to me. I'll return capital and 4% p.a. :D

    • popsiee on 16/03/2020 - 09:17

      BTC last hour did a run to USD$5900 . I trigger a few long term sells with a stop loss of $7400 . I really believe it will do a big breakout below USD$4000 somewhere .

  • armedgoat on 19/03/2020 - 15:04

    how about ALU? it operates in US.

  • baldur on 21/03/2020 - 15:20

    how can I invest in Vanguard shares? which website should I use? can please someone enlighten me?

  • JET101101 on 22/03/2020 - 08:28

    I’m thinking of doing the same thing once I see the dip

    I want to test the ‘approach’

    I noticed the shares you have selected are all doing reasonably ok for now and graphically trend the right way. I haven’t checked their PE or market caps and ratios etc though

    I was thinking of buying those blue chip type shares which had no reason to have a dip but have dipped with the market and possibly hold for longer … Wesfarmers etc. Also those who’s core market wasn’t really impacted negatively by corona

    I’m no share expert and a very amateur in share trading btw

    I did like your Newcrest and A2M logic’s thought which somewhat align
    Thoughts?

  • [Deactivated] on 22/03/2020 - 09:33

    I'd buy bitcoins but not at $9000 aud, maybe $4000 or something US, or less.

  • ozzy1 on 22/03/2020 - 19:19
    Merged from Investing in shares now

    Is it the right time to buy some shares? They look like a bargain compared to a month ago.
    Are we at the bottom? No point in keeping in savings account with that tiny interest rate. Investing in property has many upfront/selling costs and has it's own risks (bad tenants, downturn, high interest rates and others).Any other better investment ideas? Looking for long-term. Thanks.

    • dcep on 22/03/2020 - 19:25
      +4

      yes, pick blue chips that won't go bust , or pick etf

      not the bottom yet, but almost impossible to know when that is

      • Boogerman on 23/03/2020 - 11:03

        No such thing as a blue chip anymore, with talk of nationalising the banks, Qantas, etc

    • chumlee on 22/03/2020 - 19:29
      +6

      Wait til there's blood on the streets then buy CSL

      • netjock on 22/03/2020 - 20:01

        Blood banks are short on blood. So most likely no blood on the streets.

        If you see increase homelessness (the guy with 5 negatively geared properties and lost their job) or queues for soup kitchen / food banks.

      • Kenb0 on 22/03/2020 - 22:16

        Is that you blueka?

    • kahn on 22/03/2020 - 19:37
      +16

      Yes, now is the right time to buy shares in Transatlantic Zeppelin, Amalgamated Spats, U.S. Hay, Confederated Slave Holdings and that up-and-coming Baltimore Opera Hat Company.

    • mskeggs on 22/03/2020 - 19:38
      +5

      If you invested at this point in the Great Depression, you would still have lost 2/3rds of your money.
      So nobody knows.

      That said, it is certainly a better time than a month ago.
      chumlee’s comment about blood on the streets is true - when everyone is screaming the world is ending, and further bad news doesn’t drop the market much further, that is a good sign.

      If you have a lot of money, consider buying in tranches, so you don’t accidentally pick a bad day.

    • GourmetFoodie on 22/03/2020 - 20:06
      +2

      if you're planning to hold long term, i'd def start buying now. there is some incredible value already…even if it drops more. but you don't want to miss the bottom by continuing to wait.

      • dcep on 22/03/2020 - 22:01

        you mean VAH ?

        will it still exist in a few weeks ?

        • JimmyF on 22/03/2020 - 22:08

          you mean VAH ?

          To see if it bounces after they hit $0.00?

    • nubzy on 22/03/2020 - 20:51

      Any deals for ETF or other investment services at the moment

    • Diji1 on 22/03/2020 - 20:55

      Hell no.

    • lunchbox99 on 22/03/2020 - 21:34
      -2

      I'm buying at least $100k of shares/ETF. Not one cent is borrowed. All cash.

      • StonedWizard on 22/03/2020 - 23:22
        +8

        @lunchbox99 - Thanks for letting us know.

        • lunchbox99 on 22/03/2020 - 23:29
          -2

          Yeah you need my post to tell you trade volume is up.

          Also, now it's at least $200k

    • brad1-8tsi on 22/03/2020 - 21:53
      +2

      If you have to ask that question then you haven't done enough homework yet.

      Has it occured to you that a month ago the share prices were unrealistically high and that level won't be achieved for another 7 years?

      • JimmyF on 22/03/2020 - 22:10

        won't be achieved for another 7 years?

        I'm happy with that…… Interest rates are only 2%, so if they go up 4-5 fold, like they have dropped now in 7 years. I'll be a happy man! :)

        $100k after 7 years ends up being $400k+ sounds like a good investment to me!

        • brad1-8tsi on 22/03/2020 - 22:15

          That reply shows you still have no idea and unrealistic expectations.

          Did the market increase 400% in the past 5 yers? Nope.

          Just go down to Crown Casino and put it on black

          • JimmyF on 22/03/2020 - 23:03
            +2

            @brad1-8tsi:

            Did the market increase 400% in the past 5 yers? Nope.

            Things I didn't say….. but the market has dropped 70-80% for some stocks in the last month…..

            but things you did say

            the share prices were unrealistically high and that level won't be achieved for another 7 years

            So…. As I said

            $100k after 7 years ends up being $400k+ sounds like a good investment to me!

            You follow your own advice wisdom now?

            Market is down, I put $100k in shares that are down 75%, wait 7 years. Cash out.

            That reply shows you still have no idea and unrealistic expectations.

            Says the oracle of the stock market.

          • JIMB0 on 23/03/2020 - 06:49
            +1

            @brad1-8tsi:

            Just go down to Crown Casino and put it on black

            You can't, they've been ordered to close.

        • brad1-8tsi on 22/03/2020 - 22:18
          +3

          or learn to read and understand the basics of an annual report

    • [Deactivated] on 22/03/2020 - 22:08
      +1

      I wouldn't, with people cashing in their super.

    • hasselbladsnapper on 22/03/2020 - 22:50
      +2

      We have been seeing the classic "Dead Cat Bounce" I suspect this will go on for a while. Still at some stage circa 3-4 months out it might be a decent time to buy.

      In addition traders tend to sell out on a Friday to protect themselves over the WE, so if you intend to buy solid stocks this might be a good day to invest.

      Look up ARGO INVESTMENTS (ARG) and see what they are buying or indeed selling, that can be a good indicator in what to look at!.

      They are long term investors in the market over many years, and as a listed LIC they are conservative, which in these times is a good thing!.

      ( I am no expert, but have invested in the market for many years, without many regrets - Wait, perhaps not buying CSL when they were first floated!!!)

    • Zuba on 23/03/2020 - 00:18
      +6

      We've only had the entree. Main meal yet come.

    • Bargain-er on 23/03/2020 - 07:15
      +2

      Westpac, nab, anz are below GFC level. QANTAS is almost below GFC level too. I would think it's not a bad time to buy? Do understand that we may still some way down to go but we can't predict the bottom. For long term, stages entries may be a good strategy.

      One big question though, will government allow one of big 4 or Qantas to go under? If qantas got nationalised, will it lose value indefinitely.

    • Danstar on 23/03/2020 - 07:31

      Still gonna be dropping

    • dresh on 23/03/2020 - 07:51
      +1

      We are 25% lower than a month ago. Def some way to go still but you can dollar cost average your way into the market to avoid trying to pick the bottom

  • Mentallysick on 23/03/2020 - 10:40
    Merged from Investment in This Dip Market #COVID19

    Hey Pals,

    Me and Mrs. work has not been affected from COVID19.

    We have a mortgage of 700K, out of which 500 is fixed and the rest variable. One more year to finish my fixed loan. Cant switch banks as the LVR is more than 80%.

    Is it a good deal for me to freeze my payment for 6 months so i can take advantage of having extra cash in my account which is a very good time to put into stocks. Are the stocks going to go more lower than what we have seen today?

    I am thinking to put 15K into stocks which will put in a position of 10K sitting into offset account.

    We are not going to have any big expenses for another 1.5 years. Only loan is the house. Approximately Combined income of 130K annually.

    What would you do if you are in my position.
    Just wanted to get your opinion .

    Stay safe everyone.

    • [Deactivated] on 23/03/2020 - 10:54
      +1

      Sell your house now. Prices will crash. Re buy in 3 years for half the price.

    • toniyellow on 23/03/2020 - 10:58

      the LVR is more than 80%.

      I would focus on paying off the mortgage until you are in a better place.

      • Mentallysick on 24/03/2020 - 10:14

        Really? I wonder why. The interest rate is only 3.75% but all the ASX 200 now you can get it at a bargain lower nearly 10-15%.
        I am aiming for VAS and CBA along Qantas.

    • Bargain-er on 23/03/2020 - 11:52

      You're 1 year from finishing fixed loan or 1 year fixed interest will expire? If ur 1 year from finishing fixed loan definitely LVR will be less than 80%?

      • Mentallysick on 23/03/2020 - 12:55

        I mean 1 year left to finish my fixed term loan payment not the loan itself lmao. I wish i can pay off my fixed loan in 1 year. :p

        • Bargain-er on 23/03/2020 - 13:10

          Definitely paying off your mortgage mate.

          • Mentallysick on 24/03/2020 - 10:13

            @Bargain-er: Really? I wonder why. The interest rate is only 3.75% but all the ASX 200 now you can get it at a bargain lower nearly 10-15%.
            I am aiming for VAS and CBA along Qantas.

            • Bargain-er on 24/03/2020 - 10:41

              @Mentallysick: Well, if my understanding correct. Ur borrowing more than 80%? I personally would have some spare cash in this current climate. IMHO, we re not even near bottom yet… But that's my opinion not expert advise. :)

  • OzFrugie on 24/03/2020 - 00:27

    ETF or LIC ?

  • [Deactivated] on 24/03/2020 - 10:18

    Boeing are interesting to watch right now. Market cap is US$60 billion and they are asking for emergency loans of US$60 billion. They are essentially bust, but too big to fail and will be bailed out by the US government.

    • Bargain-er on 24/03/2020 - 10:42

      Wondering the same for Qantas. Price is tempting but what if they're nationalized? Are investors will be at loss if they're got nationalized?

  • scanuck on 04/06/2020 - 17:55

    JMS a long time fave of mine - managed to get a few more at 20c earlier this year

    VRX is another of my personal faves - still a bit of spec buy, but watch it sprout if/when the mining licenses are granted

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