I attended a Skype conference call put on by my broker today with the Management team from Australian Foundation Investments (AFI), a large Listed Investment Company.
Here are my notes:
– They are big holders in the banks and think that dividends will be reduced and even cut to zero for the next round of payments.
– They have heard of a long list of companies that are speaking to investment bankers about capital raisings.
– They believe that what we are seeing now is only the first wave of capital raisings and that there will be a second and third wave of raisings.
– They think that the most undervalued sectors in the market are Oil stocks and Financial companies
– They are trying to buy quality companies and are taking a 10 year view on valuations.