Notes from Australian Foundation Investments

Tony says:

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.