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August 03, 2017

Picks from Downunder

Three companies to look for, they're financial and construction.

The first represents good value for money at the moment. Westpac is a major Australian bank, the largest in terms of branch network. They're down right now and therefore cheap. The Australian government would never let Westpac go bust. Never ever. So this is a safe bet. They're not a bad income earning investment either.

Snapshot of Westpac: https://www.google.com/finance?q=ASX:WBC

For the retired folks looking at yield. consider Kiwibank capital notes, at current prices yielding 6.9%. Kiwibank are essentially New Zealand government owned and would never be allowed to fail. Any government that did let them fail would not be the government come the next election.

The capital notes here: https://www.nzx.com/markets/NZDX/hybrids/KCFHA

And lastly we have Fletcher Building. They're NZ's largest construction company and experiencing some speed wobbles. Fletcher own both Laminex and Formica (you know those - right?) and the only cement factory in NZ, Golden Bay Cement at Whangarei. They're everywhere and do anything including build houses. They have a lot of political clout and so I'd consider them a safe bet too.

Fletcher Building: https://www.google.com/finance?q=NZE:FBU


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