cho, page-80

"ARG has 2.5% discount on their SPP - do any of the others?"


So do MLT, CHO, BKI
AUI, DUI dont do SPPs, only occasional renounceable rights issues.
SPP's are good for small shareholders who wish to make periodic savings / investments. The SPP discount also results in a wealth transfer (albeit small) from the larger shareholders to the smaller shareholders, ie regardless of whether you own 1 million or 1 thousand ARG shares, you can only invest a max of $5,000 pa.
AUI, DUI have a shareholder base which is dominated by old money and the Melbourne Establishment. They dont believe in the 'small sharholder' stuff. They prefer rights issues which ensure that every shareholder benefits pro-rata.


"CK do you have a margin facility you use? NAB seems to have disparate Security ratios for ARG, CHO, MLT and BKI and not AUI/DUI. ARG only one at 70 so maybe the one for me."


Have never used Margin Loans.
I use a Line of Credit secured by property.
The bank charges me 1.8% below the Standard Home Loan Variable rate.
This is why from time to time I choose to add property to my assets. To increase the size of available cheap finance.

Containing costs matters long-term.
Look at things from the perspective of someone who is worth say $10 million.
Cutting costs by 2-3% pa (through lower borrowing costs, and elimination of management fees, commissions, trading costs etc) is worth $200,000 - $300,000 pa. Thats more than some CEO's earn in a year.

Regarding marginability, Commsec also does ARG 70%, MLT, BKI 50%.
CHO, AUI, DUI are not on Commsec's list which I regard as totally arbitrary and stupid.
Therefore I agree that ARG is for you