We learn together!

Look at this counter, bro : CUP ! Tell me what you think,....

Just want to ask how do you fund your ASX? An Australian bank account and Australian broker?

From the Fool....

Countplus Ltd (ASX: CUP) is an aggregator of accounting practices. The company acquires small accounting firms which tuck-in to the Countplus member firm network, providing small businesses access to scale. Countplus listed on the ASX in 2010 at $1.40 and currently trades at all-time lows, making it one stock that is worth a deeper look.

Business model

Countplus acquires small accounting firms through a cash and/or equity payment. Interestingly, Countplus does not employ its own staff. Instead, Countplus keeps the Principals (owners) and staff of acquired firms employed and takes an annual royalty/franchise payment.

Management recently introduced a new direct equity plan which allows Vendor Principals to buy-back up to 40% of the member firm from Countplus. The scheme allows Principals to re-purchase equity from Countplus, leading to better stakeholder alignment.

This business model incentivises performance as Principals remain in charge of the business; since most member firms are small, owner-owned practices, Principals are usually the founders of the business and have a vested interest in doing well. This makes Countplus’ business model an attractive proposition, given the majority of its shareholders are strongly aligned to the group’s performance.

Earnings road bump

As announced in April this year, Commonwealth Bank of Australia (ASX: CBA) owned 36% of Countplus due to Commonwealth Bank’s acquisition of Count Financial Limited in 2011. Speculation is mounting that this stake will be slowly divested in the coming years. This may place downward pressure on its share price, however, I believe most of that is already priced in, meaning the real driver to share price should be its earnings.

In its latest full year results, Countplus reported an increase in underlying profit of 15.9%. However, in absolute terms, earnings fell 15.1% due to the cessation of loyalty payments from Commonwealth Bank (which were part of the terms of the Count acquisition).

Performance expectations have tempered as a result, with the company providing an update to its outlook at its Annual General Meeting on 25 November 2015.

Stable income stream

The accounting industry is expected to grow by an annualised 3.7% according to IBISworld. Despite the lack of guidance provided by management, I believe Countplus should manage to grow earnings in the current climate.

If earnings per share remain flat at 9 cents per share, Countplus should be able to maintain its annual 8 cents fully-franked dividend. This places it on a forward yield of 11.9% (inclusive of franking credits), providing a solid income stream to the patient investor.

Foolish takeaway

In the interim, Countplus’ current operations should continue performing to plan, with supportive industry dynamics providing favourable tailwinds for the business. Although management has indicated debt levels will rise as a result of further acquisitions, the long-term outlook remains positive. Accordingly, Countplus’ current dividend yield on offer makes it worth a look at today’s prices.

http://www.countplus.com.au/Shareholder-Centre/Reports

will start analyse AXS

start with brokerage.

this is DBS brokerage. o.k ka?
ONLINE
Commission (AUD) Commission
Minimum AUD 30 or 0.4% of trading principal (whichever is higher)

or should consider buying from M'SIA?

I suggest not within Msia,.. go out,... DBS comm is high, but if there is no choice, then must go with it. I would suggest opening an account with Stanchart Sgp, if you can,... only AUD10 per trade,....

Are you ready to live in Australia, bro ?? If you are, then we can talk further !

Otherwise, we talk abt via Singapore ONLY !

Actually I am planning to live in NZ. Australia is too crowded and the people are more racist compare to NZ

OK,... bro,... you should learn the NZX then, opening of accts, etc,...

But I don't mind diversifying into ASX. BTW, I just finished my uni. No income yet. Even if got income, I can't buy property in AU (too expensive)

This post has been edited by Ramjade: Jan 13 2017, 12:50 PM

We are talking abt Aussie equities, not property, bro,....

Moving to AU = buying a property for future stay. Takkan want to rent.

heard AUD property prices double up every 5 yrs.. betul ka?

If you read Gen-X''s blog, he said you are lucky if you can even get 1% return. Most people get (-) returns as they have lots of fees.

too early to foresee so far. I guess u better get yourself a job. then u may consider after 5 yrs from now.

what shares can we consider at the moment for a start ? for a newbie like me ? I have Stanchart SGP.

Let say I bought 1000 units on 2 Jan 2016 at AUD5.

Annual dividend : 0.31

Purchase on 2 Jan 2016 = 1000 units x AUD5 = AUD5000

1000 units will get dividend = 1000 units x 0.31 = AUD310

How about the franking credit of $0.06643 ?

Mind if you show me the calculation for each dividend declared. I m still thinking how much would I get for purchase of 1000 units.


This post has been edited by prince_mk: Jan 19 2017, 09:21 PM


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Australian companies are known as having some of the most generous dividends across the world. This approach by Australian businesses may result in slower growth, but it does reward shareholders with the assured rewards of dividends.

Dividends are great because they are paid to shareholders like clockwork, whereas trying to know when to buy and sell shares makes it harder to know when to push the trade button and you also have to factor in brokerage costs.

So which stocks are the best ones to buy for dividends? It’s generally thought that large blue chips are the biggest dividend payers and most reliable, so here are three dividend stocks that could make solid additions to your portfolio:

a) Crown Resorts Ltd (ASX: CWN)

b) Medibank Private Ltd (ASX: MPL)

Try CUP !

Bro,.. if you are not a resident of Australia, don't worry abt the franking part ! LIke I said previously, only if you're ready to stay in Australia do you think abt the franking credits.