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Recording Steve's presentation ?

Discussion in 'Networking & Meetups' started by Simon Hampel, 27th Mar, 2007.

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Should we record the Q&A session from Steve Navra's presentation this week ?

Poll closed 30th Mar, 2007.
  1. Yes, I'd love to hear that

    43 vote(s)
    93.5%
  2. No, not interested

    0 vote(s)
    0.0%
  3. Don't care

    3 vote(s)
    6.5%
  1. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Just wondering if people are still interested in me recording Steve Navra's presentation this week - he has given me permission to record the Q&A session to post on InvestEd. I'll only do it if there is sufficient interest.

    If you are interested - it would be good to also have some questions which we can ask on your behalf.
     
  2. DaveA

    DaveA Well-Known Member

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    i would be interested in hearing what he says, however would not be interested in investing it.

    im not a big fan of argi schemes, i see them for a tax deduction investment, not an investment for returns...

    and borrowing $150,000 to stop paying $30,000 in tax, i doubt many people who are keen investors in property (or even shares i guess) would have the equity or serviceability to fund a loan like this each year.

    This is just my opinion, people may of become very rich from these schemes, maybe there just not very vocal about it

    If this was a thred for no comments please just delete this...
     
  3. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    DaveA - perhaps you should attend the session Thursday night ... you'll understand a bit better how they can make it work ... in particular, they rely on 100% finance from the agri scheme promoter, with the tax savings invested to cover the interest costs ... so in theory, there should be no cost to you and when the investment matures, you should (in theory) get a good return from both the agri investment and the other investment too.

    That being said, I'm not prepared to invest in a vehicle that requires me to commit to long term fixed finance arrangements - that's just my personal preference though.
     
  4. JIT

    JIT Well-Known Member

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    Sim,

    Would discussion of the presentation and what was said, eg re. certain investing strategies be allowed on this forum? As you know the super/tax/agri thing thread was deleted, and I think this is what the presentation is partly about? - if it is, you probably already know my questions!

    GSJ
     
  5. pudsa

    pudsa Well-Known Member

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    Hi Sim,
    We would be most interested in hearing the Q&A session. Questions (both questions are closely related) we have concern the trading outcomes achieved as follows:
    a. We understand that unit price reflects the underlying share price i.e. as share prices go up unit prices go up and vice versa but why does this impact on distribution. For example, share prices drop so unit prices drop but the trading methodology is to move in and out of the market based on volatility therefore should not the distribution be independent of the unit price i.e. unit price could be going down but fund earnings and therefore distribution could quite happily be going up but this does not seem to be that case. Are we missing something here?

    b. If the market moves up unit prices move up and distribution moves up, fair enough. But unit prices and distribution move up whilever the market moves up, our understanding is the DCT approach needs volatility and in a consistently uptrending market the volatility is not present or is intra day volatility sufficient for the DCT method to function effectively?
     
  6. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Thanks pudsa ... I will take those questions and ask them on Thursday.
     
  7. Smartypants

    Smartypants Well-Known Member

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    With the vast differences in returns occurring between the Aust & the U.S funds, I'd like to know what Steve thinks is in the pipeline for the US fund. I.e, should I persevere or change funds out of the US fund into the Oz fund.
     
  8. coopranos

    coopranos Well-Known Member

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    Sim
    Would appreciate the recording, although disappointed Steve left the forum I still think that he has a great investing brain.
    I dont know if you have access to the deleted thread with the agri investment discussion. I posted a couple of comments and questions that would be good to get answers on (mostly regarding some possible ommissions/errors from the actual calcs). The major ones I think were: Steve's calculations that he posted on the forum I beleive treated the loan on the agri investment as a interest only loan, however he later stated that one of the results of his calcs is that the agri loan would be paid off. The principal component of the repayment doesnt appear in his calculations (from memory) so it would be good to see how this affects the cashflow. Also if he uses the new tax rates (I think he was using 2006 rates which are obviously outdated) and even lower marginal rates for those of us on lower incomes, how does he see the numbers stacking up?
    I would also be interested to hear his rationale behind the long term performance of the grape investment (assuming that is the only one that actually returns money annually and thus the only one that will work cashflow-wise), and the chances (in his opinion) of getting a consistent annual return.
    At the end of this particular investment, is there actually expected to be an increase in the original cost of the investment, or does it work more like an annuity in that it pays consistent income over the life of the investment but the investment has no value at the end of the period?
    There is lots of talk of the government putting a stop to the deduction for non-forrestry agricultural investments. How would this affect the long term viability of this strategy?

    I dont know if Steve still reads the forum at all but if it is going to be recorded it would be awesome if these questions could be addressed.
    Thanks!
     
  9. gazza

    gazza Well-Known Member

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    Hi Sim

    couple more questions

    1. I would like to know if the strategy still works with zero CG from the investment in the fund.
    2. To me the calcs in the examples are always done on the basis the units in the fund cost $1 ie invest 100K , get 100000 units which at 10% income will give you 10K. In reality though this is highly unlikely. People buying units in the fund now will be paying about 1.13 (after March distrubution). 100k will therefore only buy 88495 units which at 10 cents per unit distribution , gives $8849 income. Again I would like to see if the strategy works with these more realistic numbers, given you are about 1K short in terms of cashflow.

    thanks
    Gazza
     
  10. kevinb

    kevinb Well-Known Member

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    coopranos
    I believe that the loan for the first 3 years is IO than P & I kicks after that.

    Rgds

    Kevinb
     
    Last edited by a moderator: 28th Mar, 2007
  11. JIT

    JIT Well-Known Member

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    Not sure why Steve would agree to post this stuff on Invested after recent events, surely it's going to be discussed and critiqued here, and he is not going to post to defend it, so wouldn't it end up being embarrassing for him?! I'm no business person, but doesn't make sense to me, but no complaints here, post away and be ready for the tough questions!

    GSJ
     
  12. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    GSJ ... I will be posting parts of the Q&A ... the idea is that you ask the questions now and I try and get an answer for you - there's no point asking the questions later if we aren't going to able to answer them!
     
  13. coopranos

    coopranos Well-Known Member

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    Which makes the cashflow situation even worse for the next 7 years!
     
  14. JIT

    JIT Well-Known Member

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    Sim, I was really referring to the intelligent, critical discussion that follows here (if there will be one), for those that can't attend. Whichever 'parts' are posted here from this promo. event will be interesting to read anyway. Thanks.

    GSJ
     
  15. gazza

    gazza Well-Known Member

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    Sim

    I spoke with Steve last night with regard to my two questions. He said he will work what we discussed into his presentation tonight.

    1. in relation to the CG growth question, the NI fund has returned around 14%pa growth since inception(if you take out the upcoming March distribution). This is around 3.5% pa. In my case, I have commented in other threads that I have not seen much CG in my holding since I invested the bulk of my money in Dec04. Steve pointed out that I had invested just prior to a distribution ,which was done intentionally. The advantage is you get the income straight away and it immediately pays for the upcoming interest bill (or anything else you want to use it for) The disadvantage is that your capital base is eroded by the distribution. In effect I have traded CG for income in this scenario. If I exclude the Dec04 distrubtion amount from my purchase price, I have had some CG between then and now. Around 1.58% pa, less than the overall fund performance but some CG never the less.

    2. in relation to investing money into the fund now for the purposes of generating income to pay for the agribusiness product, Steve mentioned he would talk about the distribution in term of cents per units as opposed to a percentage, when giving examples of the cashflow generated by the fund. This is because everyone will have a different entry price into the fund which then determines the number of units. For example if you invested 100K into the fund at 1.13, you get 88495 units. If the fund returns 11.4 cents per units, you will receive $10088. This equates to a percetage return on your amount invested of 10.08% (10088/100000 or 0.114/1.13). Somebody else who invested a 100K at 1.15, gets 86856 units ie an income of 9913 and a percentage return of 9.91%

    Hopefully what I have said makes sense and that Steve talks about it in his example tonight.

    cheers
    Gazza
     
  16. Smartypants

    Smartypants Well-Known Member

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    Hi Sim.

    Did you end up putting some sort of transcript on this site? (of the preentation).

    Can recall reading in one of the threads that you intended on trying to do something over the weekend (can't seem to locate that post though).

    Come on, it's not as if you're busy :rolleyes: :D . Just kidding on that last part of course.
     
    Last edited by a moderator: 4th Apr, 2007
  17. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    It turned out I had a uni assignment due on Monday - so I ended up spending the entire weekend working on that :(

    I'll see what I can do later this week.
     
  18. Smartypants

    Smartypants Well-Known Member

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    Thanks mate.

    Hope you get a good mark for your uni assignment as well :)