ASX Shares Platinum IPO

We are going to invest some $ in the float of Platinum Asset Management. We have downloaded the PDS and put in an expression of interest with ComSec for our allocation.

 

I too have registerd an expression of interest with ComSec.
It could be as good as TLSCA

 

1973 - 4.7%
1974 - 5.5%
1990 - 7.4%
1999 - 0.5%
2000 - 6.5%
2001 - (6.2)%
2005 - 6.4%

You might be wondering what those figures are. Those are the returns for the corresponding years from Berkshire Hathaway. Would you not invest in BH because of those? What's the point in getting upset about one years' returns?

If you're not confident of the manager's ability to achieve the returns you are after, why invest in that fund? If you feel you can do better elsewhere, then put your money elsewhere. But chasing returns is speculation, not investment.

Mark

 

in·vest (ĭn-věst')
v. in·vest·ed, in·vest·ing, in·vests

v. tr.

To commit (money or capital) in order to gain a financial return: invested their savings in stocks and bonds.


It would seem to me that chasing returns is the very definition of investing.

 

I must confess that I do have a short term focus. I feel comfortable with an investment as volitile as MFs only if I'm in front so as if there is a correction I lose only profit rather than capital......Its the nature of the MJK beast.

But please I'm not upset at all with my investment I just want to know if people think PI is likely to do well over the next 12 months.

And why has the performance been so low over the last 12 months? Maybe there is a good reason. Its just that I dont know what it is.

MJK

 

Chasing returns = fund and/or share hopping trying to find the next big thing (in my world). You say tomayto I say tomahto.

MJK, I dunno why PI hasn't performed so well this year either.

Mark

 

IPO is now open to Commsec clients. You are able to apply online. Commsec have limited applications to 20K ie 4000 shares. I have invested 10K, initially in my own name but only because I am a Commsec client. If I get my allocation, I will swap the shares over to my SMSF.

 

ill like to put a bit more in but my margin loan limit is too close to do it.... dont think it will be as good as telstra but should have some good growth

does anyone know what type of LVR comsec are offering on it for its margin loan?

 

Have applied today with ComSec for smsf and personal - both max allowed.

 

I would love to invest in the Interactive Brokers float on the NASDAQ. Not enough spare cash due to my residential property addiction though. I have considered a go at a stag profit, but I don't like punting.

That is one seriously good company (IBRK) they are floating there. It's a bottom of the drawer share potentially imo.

 

Comsec has closed its application for Platinum IPO - only opened for one day. My girlfriend visited from Melbourne last night and she has a lot of money in their smsf ready to invest. I told her about it and she phoned her hubby in Melbourne to get on Comsec and apply from their 3 accounts straightaway. I also told her about Navra for some of her smsf $. So, she is considering to become a Navra client - Steve should be happy!

 

Just called Platinum regarding their offer to fund investors. They confirmed that only direct investors will receive the offer but not investors through margin lending as it is too hard to track down. I had both but guess will receive lower allocation as a result.

 

I take it you're female, and girlfriend isn't girlfriend..

 

hmmm cant believe it closed so early...

i faxed my increase this morning so i may buy them 1st day on the market. however with the demand it think there will a significant preimum

 

A nice little stag profit. Thats if I get the double allocation, one in my SMSF and one in one of my companies names.

We will see. I was really surprised by the early closure. Close on $500mil in one day. Wow.

Cheers

 

what's going to be the opeing price

So anybody want to have a guess at the allocation and or the opening day price????

 

my guess, retail investors will get less than 10% of all shares... fund holders will get the most...

at end of 1st day close a premium of about 15% i reckon (around a $6 close price)

 

What about this quote from the "financial dictionary" on the web (its more important for this conversation I think):


Be sure not to get 'making an investment' and 'speculating' confused. Investing usually involves the creation of wealth whereas speculating is often a zero-sum game where wealth is not created. Although speculators are often making informed decisions, speculation cannot usually be categorized as traditional investing.
-----

Choosing funds based on their short-term performance is most definitely speculating in the financial sense. But - I'm not saying there's anything wrong with that

There have been numerous studies completed (see Bernstein et al.) that show, historically, that the most recent best performers tend to be the worst perfomers going forward. Based on this you'd probably be better off finding the cheapesst funds that have performed terribly recently and betting on those...


For those that are interested in Platinums past performance, I'd compare the returns to a simple index fund first.

As for the IPO - its a very different thing to investing in their funds. Increases in fee's (which hurt fund investors) and FUM is what you'd be interested in.


jason.

 

I would not be surprised to see the share price hit the $7.00 mark. There seems to be a large unsatisfied demand for the IPO shares.

Cheers,

Steve

 

$7.00 would represent a 40% increase on the issue price of $5.00, which would be a P/E ratio blowout from 17.6 to 24.6. Stranger things have happened..