Model Businesses Provide A Super Opportunity

Sun Herald

Sunday June 4, 2006

KERRIE O'BRIEN

SAVVY investors looking for companies with great business models should stop and admire the funds under management businesses, particularly if it is in superannuation, according to Wise-owl.com.

IOOF Holdings (IFL), an Australian financial services company providing personal superannuation, allocated pensions, employee superannuation and investment services, has just this business model. The company's wrap account gives investors the choice of approximately 80 managed funds, 25 fund managers, and different asset classes - equities, fixed interest, properties, and so on.

Also in IOOF's favour is the growing retirement sector worth $21 billion.

Alert Trader believes that constructive firmness in our local ASX 200 (XJO) since May 25 should continue towards 5250 over the next two weeks, correcting the decline from the May 10 high.

In this choppy, corrective rally environment - up to June 14 - Alert Trader favours modest long positions in Rinker, Boral, IAG and Newcrest Mining.

Moving away from resources, GT Financial this week focuses on media, namely Newscorp (NWS). Though it has had a broadly flat share price for four years, this is beginning to change and is providing investors with quite a substantial opportunity.

Impressive recent results from Vivendi and Disney are also promising.

© 2006 Sun Herald

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