February had been Reporting Season for companies listed on the Stock Exchange. Hence we studied a sheet of 30 stocks which had shown dramatic rises or falls in their share price following the company’s report to the ASX. Several of these companies had been marked down because the market expected a better result or a better dividend. Expectation by the market plays a significant role in what happens to the share price following a company’s report to the ASX.
In our second segment we looked at median house and unit prices in both Benalla and Wangaratta areas as well as in three metropolitan suburbs and other regional areas. Using two websites we were able to look at the average house or unit price for the country town or suburb, the average rent received in each place, the annual growth rate of the property as well as the percentage return on the investment before deductions. We listed what deductions are applicable to houses and units. Using the nine locations studied we found there was a strong negative correlation between the return on investment before deductions and the average annual growth of the value of the property.
The next meeting of Investment will be on Friday 7th April at 1.15pm in W4.