good for a punt, page-3

Sorry for the typo. I bought 25,000 NWH this morning for my SMSF portfolio. It is an income play for me, with an element of gamble. In my view, the upside is better than the downside, as long as one does not insist on the end game being concluded in a hurry, and that is where the dividend yield comes in - it puts me in a position where I can wait for years.

When doing the research for NWH, it is handy to look at MACA (MLD) and Brierty (BYL) to get an idea of the macro environment facing the WA-based earth-moving sector. On a scale of size, their rankings are BYL, MLD and NWH, which in relative terms is of the order of 1, 2 and 10.

For me to be investing in NWH, which is subject to cycles, signifies how difficult it is to find good investment targets these days. My preference is to invest in boring non-cyclical companies that have many small customers, but the only one that I can find that is not over valued is TGA, but I am already over weight there.