Forum Topics Recovery Trades
ShangriLa
Added 4 years ago

Hi Mmff, the issue for me is the fact that most retail brokers won't allow the purchase of parcels of less than $500, not sell orders - its always been my experience that selling is not the issue.

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mmff
Added 4 years ago

HI ShangriLa,

I had realised the recent post, about shares parcels of shares for under $500.00, was about purchasing shares .

The forum post I was referring to was a while back and members were saying that they couldn't sell their unmarketable parcels without a lot of inconvenience and so mostly they just left them in their portfolois. So I was just letting them, and anyone else know that it seems they can now do just a normal trade to sell them,

Cheers

mmff

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Bear77
Added 4 years ago

Perhaps with full service brokers it might be an issue to sell small dollar values of shares however probably more of an issue of cost, i.e. not worth the fees to make the sale.  In terms of online brokers, you can sell one share for one cent if you want, but you'd still have to pay their brokerage fee to do it ($10 in the case of Commsec, $9.50 for Selfwealth).  I understand that people might not want to sell less than $10 worth of shares (which is what a previous position might have now become worth) if they're going to have to pay around $10 to sell them, coz they would have to pay to do it, for a negative return, but selling $100, $200, 300 or $400 worth of shares has never been a problem through any online broker to the best of my knowledge.  It's only on the buy side that restrictions are often imposed.  Although less so nowadays I find. 

My SMSF (managed through an industry super fund - CBUS) does have a $1,500 minimum for buys.  I think it's to stop people trying to trade small parcels and losing too much on brokerage fees, but it might also be to reduce the number of trades that they (the super fund) have to make on behalf of their members.  It's all supposed to encourage decent sized positions and more buy and hold and less quick flips (daily trades).  They also restrict the investable universe for their members to only companies within the S&P/ ASX300 index as well as a small collection of ETFs and a couple of their own managed funds (infrastructure and property).  You can also choose to leave a portion of your available capital in their own managed investment options, which I do because there is also an 80% limit on direct shares (20% of my balance has to be in their managed funds of managed investment options and I can choose where to invest the other 80% within their restricted/reduced investment universe).  Also, their managed investment options have performed very well, particularly their default Growth (CBUS MySuper) and their High Growth options, which are the two that I use.  However, again, no restrictions on sells.

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mmff
Added 4 years ago

Commsec ~ Trades under $500.00

A while ago there were some post here on SM RE not being able to put through SELL trades for shares under $500.00. Just to let you all know that I have recently sold 2 xlots of 'unmarketable parcels' (holdings worth <$500.00), by just placing the trade on the Commsec site aka I didn't have to ring them.

So if you want to get rid of yours, then try the same & good luck...

Edit~typo

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Bear77
Added 5 years ago

Tuesday 10-Nov-2020:  Here's a small excerpt from Marcus Padley's "MarcusToday" EOD (end of day) email today:

MARCUS STRATEGY - What a week - Trump gone, the adults back in charge of the US and, as if that wasn't enough, now we (appear to) get a vaccine that solves Biden's and the World's worst worry - tackling the virus. Pandemic over? There are always finger waggers when we get good news (there may be legitimate vaccine developments/delays we are not factoring in) but there are also times in the stock market when you have to take a risk - and if this isn't it, then what is? Chickens don't make money. Good day for the Bulls and potentially, in the right cyclical and recovery stocks, today marks a multi-decade buying opportunity.

--- end of excerpt ---

And what have the punters been buying and selling today?

Buying:

  • URW +43.55%, SCG +14.52% - Shopping Centres are sexy again?
  • LOV +24.70% - Traditional bricks-and-mortar store chain
  • EVT +21.43% - Cinemas
  • CTD +15.83%, WEB +13.55%, FLT +9.26%, QAN +8.33% - travel is back - apparently...

Selling:

  • MMM -22.97%, TPW -20.56%, KGN -17.11%, RBL -20.04% - no more virus it seems.  Online stores and online service providers no longer needed?
  • NST -11.46%, SAR -11.45%, EVN -10.39%, RMS -13.25%, DEG -13.18%, SLR -10.97%, ALK -12.8%, BGL -11.41%, CDA -13.44% - no need for gold any more?  CDA produce the world's best ("Minelab") gold detectors, the others are all gold producers or gold project developers.
  • ARB -12.8%, BAP -9.2%, SUL -11.51%, CAR -4.69% - new consumer habits immediately abandoned - no need to spend money on cars, camping, fishing; everybody will now be flying overseas, no more Australian-based leisure activities.
  • ZNO -11.08% - long-lasting alcohol-free hand sanitiser and surface treatments of no further use (due to no more virus) ?

An overreaction perhaps?

Mr Market is rarely entirely rational.  That's how we benefit.  Mr Market is there to serve us.  Not to inform us.  We are always free to ignore him, and we usually should.

(Paraphrased from W. Buffett and B. Graham)

Here's something that does make some sense to me:

WPL +7.6%, BPT +14.8%, COE +10.94%, STO +12.18%, OSH +16.55% - the Energy sector is one of my personal favourite recovery plays - however, I got set before today.

Regarding whether it's all blue sky from here - I think that call might be a tad premature.  Positive, certainly, but expect further bumps in this road ahead.  It ain't over yet.

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