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PERFORMANCE REPORTINDEPENDENTLY AUDITED RESULTS

ISSUES 80 TO 214, MAY 2001 TO DEC 2006

The Intelligent Investor is an independently owned company based in Bondi Junction, New South Wales. Established in April 1998,

the company is today Australia’s leading value investing publication and a highly regarded source of independent stockmarket information.

www.intelligentinvestor.com.au


The Intelligent Investor Performance Report 2008 1

PERFORMANCE REPORTINDEPENDENTLY AUDITED RESULTS

ISSUES 80 TO 214, MAY 2001 TO DEC 2006

Contents

Introduction

Methodology

Summary and Discussion

Strong Buy recommendations

Buy and Long Term Buy recommendations

Buy for Yield and Speculative Buy recommendations

Subscribe and Accumulate recommendations

Independent Audit Report

Notes to the Schedule of Performance Statistics

Directors’ Declaration

Schedule of Performance Statistics as at 31 December 2008Strong Buy—14 Buy—14 Long Term Buy—17

Buy for Yield—23 Speculative Buy—24 Subscribe—27 Accumulate—27

Important Information

2

4

5

6

7

8

9

10

12

13

14

28


425 recommendations deliver 2.63% average annualised return (weighted average)

putting runs on the board in the current tumultuous environment. the point is really to see results over a full market or economic cycle. and, whilst we’ve now seen a major crash for the first time in many years, we’re yet to see the recovery.

a n a ly s e t h e b u s i n e s s

the framework used by our team of analysts is well documented on our website. there are no ‘black boxes’ here. we always analyse the business of each company we review. If possible, we then form a view of the stock’s underlying value. If the current market price is substantially below that level, offering us an all-important margin of safety, then we’ll recommend the stock.

In a sense, you get to watch a value investing virtual reality show through the 350,000-odd words our analysts publish each year. You see us respond to events as they

You and I face a challenge. as investors, we know the disclaimers are right: past performance is not a reliable indicator of future returns. But if we shouldn’t use past performance as a benchmark, then what should we use?

My personal solution is twofold. firstly, I want to know the intellectual framework being used by the person whose record I’m examining. what are the principles by which they are making their calls? Do they make sense to me?

Secondly, I want an extended track record. time moves on and situations change. Last year’s hot investment strategy may prove a disaster in different market conditions—a lesson learned the hard way recently by owners of Centro Properties Group and A.B.C. Learning Centres, among others.

In previous years, I’ve suggested that five years might make a reasonable timeframe. But that really depends on which five-year period you’re talking about. the investors with great five-year records at 30 June 2007 look very different to those

The Intelligent Investor Performance Report 2008Introduction2


IntroductionThe Intelligent Investor Performance Report 2008 3

unfold and can go back and look at past articles on our website—there’s nowhere for us to hide.

Up until 2007, we had a growing and pleasing record. But an absence of genuine value in recent years led to some poor decisions that have been unmasked by the global credit- cum-economic crisis. the average annual return from our 413 positive recommendations (excluding 12 Subscribe recommendations, which provided an average annual return of 12.2%) has been just 2.6% since our current research director, Greg hoffman, took up that post in 2001, compared to an annual return of 5.5% from the all ordinaries accumulation Index.

summary of average annualised return

Recommendation numbeR aveRage

annual.RetuRn

Strong Buy 10 –18.29%Buy 84 3.75%Long Term Buy 198 7.88%Accumulate 3 33.46%Buy for Yield 51 –6.28%Speculative Buy 67 –5.74%Subscribe 12 12.23%total 425WeightedaverageannualisedReturn(excludingSubscribe) 2.63%

Calculation date: 31 December 2008

our aim is to deliver value many times greater than our annual subscription fee, but with such figures, some members, particularly new ones, may reasonably question our results.

for the first time, we need to make up ground against the

Greg Hoffman is Research Director and has been with

The Intelligent Investor for more than eight and a half years.

market. we’re pleased to note, however, that we’ll be helped by the fact that some of australia’s best businesses are currently trading at knockdown prices. as the financially strong take advantage of weak competitors, we expect our performance to recover. there’s much to look forward to, ‘if’, in the words of rudyard kipling, ‘you can keep your head when all about you are losing theirs.’

h i g h q u a l i t y s t o c k s

high quality businesses at knockdown prices were rare over the four years to 2007, but in 2008 they began to appear in abundance. our performance might be suffering, but these are the times we relish at The Intelligent Investor; the bargains we purchase today lay the foundations for tomorrow’s outperformance.

Value investing does not suit everyone’s personality. You need to have the courage of your convictions and the ability to move against the crowd. You must also understand that you will make mistakes from time to time. If these sound like unrealistic requirements, then I urge you to reconsider the Intelligent Investor’s suitability to your needs.

Before you dive into the figures, I’d like to take this opportunity to thank our team of talented analysts. not everybody looks forward to going to work each day but I’m lucky enough to do exactly that. Sitting among fine investing minds that have more than their fair share of humour and integrity is an honour and a delight.

Many happy returns,Greg Hoffman


consistency scepticism conservatism

M e t h o d o l o g y

this is our fourth audited performance report and, as foreshadowed in our 2006 report, the second year where a change of methodology has been required. with recommendations now released online, sometimes throughout the trading day, we take the price as at the time of publication (rather than the day’s closing price).

as always, we’ve aimed for consistency and have adopted a healthy degree of scepticism in our methodology. firstly, the performance report covers all positive recommendations made from issue 80 (when Greg hoffman became research director) through to 31 December 2008. each and every change to a positive recommendation is included in the figures. this encompasses first-time recommendations on stocks as well as changes to existing recommendations.

to illustrate this, let’s take the example of a stock which is first recommended as a Long term Buy at $1.50, subsequently upgraded to an outright Buy at $1.10 and then downgraded once again to Long term Buy at $1.40. the stock will be included

in the Long term Buy table at both prices ($1.50 from the first recommendation and $1.40 from the second) as well as in the Buy table at $1.10.

when considering amounts received from dividends, special dividends, distributions and capital returns, we have taken no account of any potential taxation issues (such as franking credits received). we have simply included the amount that would have been delivered to a stockholder’s bank account. for the sake of simplicity (and conservatism), the timing of payments has not been taken into account, which detracts from the performance figures. we are aiming to correct this in the 2009 performance report but, at the time of writing, we haven’t finalised a suitable method.

on ‘closed’ recommendations, for the sake of brevity, we’ve taken the first negative recommendation as the closing-off point. where we’ve issued a take part profits recommendation and the stock price has subsequently moved higher, this has detracted from the performance and vice versa. overall, the impact roughly cancels out.

for ‘open’ recommendations (those not yet sold), the closing price on 31 December 2008 has been used to calculate the performance result. finally, no account has been taken of any recommended portfolio weightings.

Methodology The Intelligent Investor Performance Report 20084



s u M M a r y a n d d i s c u s s i o n

our past performance reports have carried a caveat: don’t form expectations based on past returns because they will inevitably fall. the word ‘fall’, though, doesn’t do justice to the sudden disintegration of valuations we’ve seen around the world. In 2008, the credit bubble burst and brought the western capitalist system to within a whisker of collapse. nobel Laureate kenneth arrow suggested ‘knowledge … comes trailing clouds of vagueness’. rarely have they been thicker, rarely the fear so palpable, but with a level head these are the times when value investors can shine.

few were spared in the stockmarket rout of 2008 but, for reasons that we will discuss, we were particularly displeased with our performance. our overall annualised return has plummeted to 2.6% from 17.2% in our previous report, and an unsustainable 21.3% the year before that. Meanwhile, after witnessing a five-year bull market that included housing and resources booms (bubbles, perhaps?), the all ordinaries accumulation Index has returned just 5.5% per year over the period.

Despite avoiding the most infamous corporate disasters of 2008, we failed unconventionally by making value cases for low-quality businesses that have succumbed to the credit crisis. this is perhaps more frustrating than it might have been to have overpaid for household names, like Commonwealth Bank for example.

the disappointments begin with our Strong Buy recommendations, where we have the highest conviction that a stock represents a bargain. these opportunities are rare but, after having only four recommendations in this category to 2006, we added two more in 2007 and four in 2008—although

there were only four new names, as Timbercorp appeared three times as it oscillated between Strong Buy, Buy and Long term Buy.

with timbercorp, though, our conviction was misplaced and the result has been calamitous. the company is facing bankruptcy and, because it appears on three separate occasions, it’s the main reason our Strong Buy performance has tumbled to –18.3%.

Last year we argued that the 23.1% annualised return from our Buy recommendations was too high, because it suggested we were being too selective. But you have to be careful what you wish for, and this year that return has tumbled to 3.8%. our main problem was not taking our money off the table when valuations reached extreme levels, and many of the stocks that produced the sparkling returns to 2007 have since collapsed.

on the flipside, though, we’ve been able to add businesses that are trading at 2004 prices, yet have increased their value significantly since then. they include Harvey Norman, Perpetual and Corporate Express to name just a few. we’re confident that such quality companies will generate strong returns over the years from current prices.

the 7.9% return from our Long term Buy recommendations makes it our best-performing category and the only one to beat the index (excluding accumulate and Subscribe recommendations for reasons we’ll soon explain). price falls

Summary and Discussion

[ c ontinued on page 6 ]


across the board have also allowed us to add quality names such as Cabcharge, Cochlear, Treasury Group, Billabong International, Aristocrat Leisure and Macquarie Airports (many not for the first time). these are some of australia’s best businesses and we hope to add them to our Buy list in 2009.

for what should be a relatively safe, reliable and conservative category, the –6.3% return from our Buy for Yield recommendations is galling. You wouldn’t expect numerous examples of capital losses exceeding 60%, which illustrates our misjudgement of the severity of the credit crisis early on—investors have climbed frantically to the relative safety of only the highest-rated income securities.

But flood has replaced famine for income investors, with the flight to quality leaving behind some rare value. Securities including DEXUS RENTS, Goodman PLUS, Seven Network TELYS3, Santos FUELS and Southern Cross SKIES, for example, are offering equity-like returns with less risk.

with Speculative Buy recommendations, on the other hand, we expect a lot of risk, but we also anticipate strong returns to compensate. So far, though, we’ve seen a lot of the risk but little sign of the strong returns. our annual return to 2007 stood at just 1.1%, and the addition of BBI EPS and Timbercorp Convertible Notes and Preference Shares has taken it into negative territory, at –5.7%. More positively, Speculative Buy recommendations made on Australian Worldwide Exploration and TAP Oil back in october so far look well timed.

we didn’t add any companies to our list of Subscribe recommendations in 2008—only two income securities—but it didn’t prevent some of our existing recommendations taking a beating. overall, though, the 12.2% annualised return looks impressive against the index, but we’re not getting carried away. In fact, for reasons we’ll explain shortly, we exclude Subscribe recommendations altogether from our overall returns.

our aim is to achieve performance significantly higher than the market average and, after several years of being ahead, the last year has seen us slip behind. It’s been an extraordinary year, though, and while we’re disappointed by our performance, we’re equally excited about the future. after years of a rampaging bull market, value has finally returned to the stockmarket, and we’re confident it will give us the opportunity to shine.

with the prospect of even lower stock prices in the offing, the team at The Intelligent Investor is as keen as ever to find bargains. we’re also committed to improving the way our findings are communicated to you. through podcasts, face-to-face seminars and our ongoing online forum we aim to bring you closer to the research process.

s t r o n g b u y r e c o M M e n d at i o n s

the previous year’s worst performer proved to be 2008’s repeat offender and the common thread was the felling of timbercorp. our Strong Buys have delivered a nauseating average annual return of –18.3%, down from 26.8% in 2006 and 11.1% in 2007.

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Summary and Discussion The Intelligent Investor Performance Report 20086



we define a Strong Buy as a stock we believe to be at least 40% underpriced and it generally takes very unpalatable news to create such extreme undervaluation. with few recommendations, it only takes one or two good or bad recommendations to significantly affect the average return.

Betting against the crowd can be highly lucrative, but the market’s dim view of Timbercorp’s deteriorating business and high debt has been vindicated, leaving us battered and bruised. timbercorp appears on three separate occasions as its recommendation has swung between Strong Buy, Buy and Long term Buy.

Compounding timbercorp’s woes was Macquarie Group, which became a five-bagger (excluding dividends) before retreating to its original 2002 recommendation price. hindsight says we also overpaid for Infomedia, Platinum Asset Management and Mortgage Choice.

b u y r e c o M M e n d at i o n s

Buy recommendations should be our ‘sweet spot’ but the average annual return of 3.8% is below the index return of 5.5%. In 2008 we watched companies like Flight Centre, Macquarie Group and Cochlear hit record highs before crashing back to earth. But the best companies are generally worth holding through thick and thin and their current prices are attractive in our view.

panic is a value investor’s best friend, and we’ve recently added plenty of blue blood to our Buy list including Perpetual, Harvey Norman, Corporate Express and Macquarie Group. we’ve also introduced WHK Group and Australian Wealth

Management, along with other familiar names where price declines appear overdone given favourable long-term prospects.

It’s worth noting that although we’re witnessing the best value we’ve seen in many years, we remain selective. no banks or property trusts, for example, have been given Buy recommendations despite large stock price falls. Leverage is dangerous at the best of times but, with asset prices falling across the globe, skeletons are still appearing out of the closet. the economic crisis has swiftly revealed years of risky lending and aggressive banking practices.

l o n g t e r M b u y r e c o M M e n d at i o n s

the fear currently stalking stock markets has allowed us to add some first-class Long term Buys in 2008. at the big end of town, Cochlear, Macquarie Group, Harvey Norman, Aristocrat Leisure, Perpetual, Billabong International and Flight Centre are a formidable line-up. at the smaller end, Australian Wealth Management, Fantastic Holdings and Fleetwood have returned, while WHK Group has made its first appearance.

Quality hasn’t been spared in the market rout, though, with most names getting significantly cheaper since earning an upgrade. the average annual return has slipped to 7.9%, which is still above the 5.5% for the all ordinaries accumulation Index return, but well off the 21.7% average annual return from 2007. we repeatedly noted that returns of that magnitude were unsustainable, but we expect to do better than 7.9% over the long term, and we have confidence in our current crop of recommendations to provide that improvement.

Strongbuy The stock is grossly undervalued in our

view, typically by 40% or more. It also generally offers some form of downside protection such as a high dividend yield. This is our strongest form of

recommendation.

buy The stock is undervalued in our view, typically by 30%

or more. This is a stronger form of recommendation than

Long Term Buy.

Strong Buy and Buy recommendations


b u y F o r y i e l d r e c o M M e n d at i o n s

famine, meet feast—and disappointment. the annual average return for our Buy for Yield category has dropped to –6.3%, from 11.7% in 2007 and 15.0% in 2006. the extent of capital loss from perennial favourites Great Southern TREES2 (which appears no less than four times), Great Southern TREES3, Willmott PINES, and Timbercorp Bonds, Preference Shares and Convertible Notes—all in the same industry—is disappointing for a category that, in theory, should produce relatively safe returns.

the declines reflect a deteriorating industry and poor credit quality, rather than a risky grab for extra yield, which caught out so many trying to escape low interest rates. either way, though, the result is the same.

Clearly we underestimated the severity of the credit crisis, which saw weak business models crumble and their debt securities tumble. property stalwart GPT Group was another blunder, and Ten Network and Mortgage Choice will have to improve markedly to justify our original recommendation prices.

Despite further falls since receiving an upgrade, the gimmicky named and heavily discounted floating rate securities, including DEXUS Rents, Goodman PLUS, Seven Network TELYS3 and Southern Cross SKIES, to name just a few, are offering equity-like returns with less risk. although the issuers in most cases are highly indebted, current prices provide a decent margin of safety and we’re confident that a portfolio approach will result in significant gains as credit markets repair themselves.

s P e c u l at i V e b u y r e c o M M e n d at i o n s

In 2007, we lamented and defended our dismal 1.1% average annual return, suggesting that ‘Speculative Buys have a role to play in the portfolio of many investors and can add a worthwhile element of diversification. we’ll be aiming to prove that’s the case over the coming years.’ we stand by those comments, but the average annual return has now fallen to –5.7%.

this year we’ve added rhG Group again, and new recommendations include junior oil producers Australian Worldwide Exploration and TAP Oil, as well as Timbercorp Preference Shares and Convertible Notes.

of all our recommendations, Speculative Buys suffer most from our performance methodology. Individual losses in this area are often substantial, and these risks need to be managed carefully within a diversified portfolio. we’ll therefore often recommend a maximum portfolio weighting for Speculative Buys, but the performance report takes no account of this.

as a result, the average returns from this category are much worse than they would have been for a well-diversified portfolio that adhered to our allocation advice. for example, we recommended three listed investment company options in issue 150/apr 04 for no more than 1% of members’ portfolios, yet they’re all included in the performance report with the same weighting as every other recommendation. the average annualised return for the Speculative Buy category is –1.7% without these stocks, but that of course is still very disappointing.

longtermbuy This is the recommendation applied to above average companies that may never trade at bargain prices but should deliver good results to genuine long-term investors over time. It can also be applied to average companies that are mildly underpriced.

buyforYield Where a stock offers an attractive, stable income in relation to its current price. Capital safety is also a primary consideration for this type of stock.

Long Term Buy and Buy for Yield recommendations The Intelligent Investor Performance Report 20088



s u b s c r i b e r e c o M M e n d at i o n s

we exclude Subscribe recommendations from our overall record because they don’t reflect reality. recommending new floats is easy; getting an allocation is not. It’s like knowing the location of the hottest night club in town but not knowing the bouncers—pretty much pointless and very frustrating.

any analyst worth their salt should be able to identify most decent float opportunities. at the least, a quick scan of the financial media will usually give an indication of the level of demand for a float, and therefore its prospects for initial performance upon listing.

we added two income securities this year, Suncorp Preference Shares and Macquarie Convertible Preference Shares. as you might expect in a fearsome bear market, listings were relatively few and far between in 2008. the quality of floats is inversely correlated to the maturity of a bull market, so opportunities may appear as markets recover—but as many investors have learned the hard way, the best investment ideas don’t generally show up in your letterbox.

all of our open Subscribe recommendations went backwards over the past year, but Great Southern TREES2 and Great Southern TREES3 were hit particularly hard as their issuer, Great Southern, struggles to survive.

the average annualised return of 12.2% is down from 34.2% at the time of our previous performance report. Still, that’s well ahead of the index’s 5.5% return. the bull market saw a lot of poor-quality companies list on the exchange and we hope that the future provides more quality than quantity.

a c c u M u l at e r e c o M M e n d at i o n s

this category was the only one to improve its average annualised return. It rose to 33.5% from 32.9% as Santos’s share price increased after the law preventing an individual shareholder from owning more than 15% of the company was repealed. this recommendation category was abolished in 2001 because we felt it was too ambiguous (its closest living relative is our Long term Buy recommendation).

we have no more open accumulate recommendations and, while the category’s annual return looks pretty on paper, it offers little insight into either the process or performance of The Intelligent Investor.

Speculative Buy, Subscribe and Accumulate recommendations

Speculativebuy A number of factors could earn a stock this

tag but, ultimately, it refers to a more risky investment. We’d

suggest that you don’t put too much of your portfolio at risk

following such recommendations.

Subscribe A positive recommendation for new issues

where you’ll generally need to subscribe to the offer via

its prospectus.

accumulate A discontinued recommendation that

is most closely akin to our Long Term Buy.


ScopeThe schedule of investment performance statistics

we have audited the accompanying schedule of investment performance statistics, which has been stamped for identification purposes, comprising the investment and performance statistics, accompanying notes to the investment performance statics, and the directors’ declaration for the Intelligent Investor publishing pty Limited (the company), for the period from 1 January to 31 December 2008.

the directors of the company are responsible for the preparation and presentation of the schedule of investment performance statistics. this includes responsibility for the maintenance of adequate records and internal controls that are designed to prevent and detect fraud and error, and for the selection of appropriate policies for the preparation of the schedule of investment performance statistics. the company’s directors have determined that the basis of preparation used and described in notes to the schedule of investment performance statistics are appropriate to meet the needs of the users of this information.

the schedule of investment performance statistics has been prepared for inclusion in periodic performance reports to be issued by the company. we disclaim any assumption

of responsibility for any reliance on this audit report or on the schedule of investment performance statistics to which it relates to any person other than the directors, or for any purpose other than that for which it was prepared.

Audit approach

we conducted an independent audit in order to express an opinion to the directors of the company. our audit was conducted in accordance with australian auditing Standards, in order to provide reasonable assurance as to whether the schedule of investment performance statistics is free of material misstatement. the nature of an audit is influenced by factors such as the use of professional judgement, selective testing, the inherent limitations of internal control, and the availability of persuasive rather than conclusive evidence. therefore, an audit cannot guarantee that all material misstatements have been detected.

we performed procedures to assess whether in all material respects the schedule of investment performance

Chartered AccountantsBusiness Advisers and Consultants

Level 17, 383 Kent StreetSydney NSW 2000PO Locked Bag Q800QVB Post OfficeSydney NSW 1230T +61 2 8297 2400F +61 2 9299 4445E [email protected] www.grantthornton.com.au

Grant Thornton Services (NSW) Pty LtdABN 80 798 869 203

Liability limited by the Accountants Scheme, approved under the Professional Standards Act 1994 (NSW)

Member of Grant Thornton Association IncMember of Grant Thornton International

i n d e P e n d e n t a u d i t r e P o r t t o t h e d i r e c t o r s o F t h e i n t e l l i g e n t i n V e s t o r P u b l i s h i n g P t y l i M i t e d

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Independent Audit Report10 The Intelligent Investor Performance Report 2008



statistics presents fairly, in accordance with the basis of preparation described in the notes to the schedule of investment performance statistics, the investment performance of the company’s recommendations, as made in its newsletter published during the period from 1 January 2008 to 31 December 2008. no opinion is expressed as to whether the basis of preparation used, and described in the notes to the schedule of investment performance statistics is appropriate to meet the needs of the directors.

we formed our audit opinion on the basis of these procedures, which included examining, on a text basis, information to provide evidence supporting the amounts and disclosures in the schedule of investment performance statistics.

Audit opinion

In our opinion, the schedule of investment of performance statistics of the Intelligent Investor publishing pty Limited from 1 January 2008 to 31 December 2008 presents fairly the investment performance of the company’s investment recommendations in accordance with the basis of preparation set out in the notes to the schedule of investment performance statistics.

Grant Thornton Services (NSW) Pty LimitedChartered accountants

G S LaylandDirector–audit and assurance ServicesSydney, 5 february 2009

Independent Audit Report


Basis of preparation

the following items set out the assumptions on which the Schedule of performance Statistics (‘the Schedule’) is based:1. the Schedule includes recommendations contained in

issues 239 to 262 of The Intelligent Investor.2. each positive recommendation is included as a

new recommendation, whether for a previously recommended stock or a newly recommended stock. hence recommendations for the same company are included multiple times where there have been changes in positive recommendations made.

3. returns from dividends, special dividends, distributions and capital returns take no account of taxation implications or franking credits.

4. Capital returns have been included as a dividend received rather than as an adjustment to the price of the share where capital returns fall within the holding period. where capital returns fall outside the holding period no adjustment has been made.

5. for ease of presentation and consistency take part profit (‘tpp’) recommendations have been treated as a full sale with the performance return calculated from the positive recommendation to the tpp recommendation. while the performance of individual shares changes if performance is calculated to a full Sell recommendation, or the cut-off date of 31 December 2008 (if not sold), in aggregate the affect on returns of the portfolio is not material.

6. Due to a change in the publishing regime, recommendations are now taken from the time they are posted to The Intelligent Investor website.

7. prices for open (not sold) recommendations are as at 31 December 2008.

8. purchase prices used in calculations are the actual price when the recommendations were posted to The Intelligent Investor website.

n o t e s t o t h e s c h e d u l e o F P e r F o r M a n c e s tat i s t i c s

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Notes to the Schedule of Performance Statistics12 The Intelligent Investor Performance Report 2008


The Intelligent Investor Performance Report 2008 13Directors’ Declaration

9. Calculations are based on prices and dividends for one (1) share in each company for each recommendation.

10. no account of different levels of risk associated with different investments/companies has been taken.

11. no consideration has been given to portfolio weightings for each recommendation.

12. the Schedule has been prepared with reference to and where applicable, compliance with aSIC Guidance Statement on the Use of past performance in promotional Material and IfSa Standard no 6.00 on the Calculation and presentation of returns.

d i r e c t o r s ’ d e c l a r at i o n

the Directors of the Intelligent Investor publishing pty Limited (the Company) declare that the attached Schedule of performance Statistics:1. has been prepared in accordance with the assumptions

as detailed in the notes to the Schedule of performance Statistics; and

2. Complies with the requirements of the aSIC guide on the Use of past performance in promotional Material of July 2003; and

3. presents fairly the performance of the Company’s recommendations of issues 239 to 262.this declaration is made in accordance with a resolution

of the Board of Directors.

Greg HoffmanDirector

Bondi Junction, 5 february 2009


The Intelligent Investor Performance Report 2008Schedule of Performance Statistics as at 31 December 200814

strong Buy

iSSue date StockaSX oRiginal buY Sale

date Recommendation

PRice dividendS FR’king YeaRS

RetuRn annual. PeRFoRm.

code Recommendation PRice iSSue atSale Held RetuRn RetuRn

84 24/07/01 Forresterkurts(FkP) FKP Strong Buy $0.81 120 4/02/03 Take Part Profits $1.48 $0.15 100% 1.5 101% 58% 58%112 17/09/02 miller’sRetail MRL Strong Buy $2.05 196 28/03/06 Sell $1.70 $0.23 100% 3.5 –6% –2% –2%114 15/10/02 macquariegroup MQG Strong Buy $20.39 – Not Sold – $28.81 $14.86 87% 6.2 114% 13% 13%151 11/05/04 miller’sRetail MRL Strong Buy $1.46 196 28/03/06 Sell $1.70 $0.04 100% 1.9 19% 10% 10%221 10/04/07 timbercorp TIM Strong Buy $1.85 – Not Sold – $0.13 $0.085 100% 1.7 –89% –72% –72%225 31/05/07 timbercorp TIM Strong Buy $1.91 – Not Sold – $0.13 $0.085 100% 1.6 –89% –75% –75%240 22/01/08 Platinumassetmgmt PTM Strong Buy $4.06 – Not Sold – $3.45 $0.24 100% 0.9 –9% N/A –9%240 22/01/08 timbercorp TIM Strong Buy $0.80 – Not Sold – $0.13 $0.015 100% 0.9 –83% N/A –83%245 31/03/08 infomedia IFM Strong Buy $0.34 – Not Sold – $0.29 $0.014 100% 0.8 –12% N/A –12%246 15/04/08 mortgagechoice MOC Strong Buy $0.95 – Not Sold – $0.76 $0.08 100% 0.7 –12% N/A –12%numberofStrongbuyrecommendations 10 averageannualisedReturn –18.29%

Buy


date Recommendation




80 29/05/01 JustJeans JJS Buy $1.10 87 4/09/01 Accept Offer $1.38 $0.00 N/A 0.3 25% N/A 25%80 29/05/01 macquariegroup MQG Buy $32.00 – Not Sold – $28.81 $16.31 93% 7.6 41% 5% 5%80 29/05/01 tempoServices TEM Buy $2.13 150 27/04/04 Sell $1.14 $0.26 100% 2.9 –34% –13% –13%81 12/06/01 coloradogroup CDO Buy $1.66 103 14/05/02 Sell/Switch $3.05 $0.09 100% 0.9 89% N/A 89%83 24/07/01 bankWest BWA Buy $4.33 109 6/08/02 Sell $4.15 $0.175 100% 1.0 0% 0% 0%84 24/07/01 tabQld(unitab) TQL (UTB) Buy $2.76 158 17/08/04 Take Part Profits $9.31 $0.70 100% 3.1 263% 52% 52%85 7/08/01 Forresterkurts(FkP) FKP Buy $0.98 120 4/02/03 Take Part Profits $1.48 $0.15 100% 1.5 66% 41% 41%85 7/08/01 Sonsofgwalia SGW Buy $7.75 128 27/05/03 Sell Down/Hold $2.14 $0.325 0% 1.8 –68% –47% –47%86 21/08/01 tab TAB Buy $2.67 149 13/04/04 Sell $4.69 $0.43 100% 2.6 92% 28% 28%88 18/09/01 australianinfrastructure AIX Buy $1.267 167 18/01/05 Sell $2.56 $0.395 39% 3.3 134% 29% 29%93 27/11/01 cmi CMI Buy $1.10 145 17/02/04 Sell $2.21 $0.20 100% 2.2 119% 42% 42%93 27/11/01 Futuris FCL Buy $1.78 Not Sold – $0.65 $0.61 90% 7.1 –29% –5% –5%95 22/01/02 Suncorpmetway SUN Buy $14.50 168 1/02/05 Take Part Profits $18.55 $1.80 100% 3.0 40% 12% 12%102 30/04/02 Securenet SNX Buy $0.86 133 5/08/03 Hold $1.57 $0.00 N/A 1.3 83% 61% 61%102 30/04/02 telstra TLS Buy $5.09 Not Sold – $3.83 $1.94 100% 6.7 13% 2% 2%103 14/05/02 miller’sRetail MRL Buy $2.33 196 28/03/06 Sell $1.70 $0.23 100% 3.9 –17% –5% –5%107 9/07/02 computershare CPU Buy $2.08 Not Sold – $7.80 $0.775 27% 6.5 312% 24% 24%


Schedule of Performance Statistics as at 31 December 2008The Intelligent Investor Performance Report 2008 15

Buy [ c ontinued from page 14 ]


date Recommendation




107 9/07/02 StWcommunications SGN Buy $3.95 Not Sold – $0.68 $1.125 76% 6.5 –54% –11% –11%108 23/07/02 Securenet SNX Buy $0.81 133 5/08/03 Hold $1.57 $0.00 N/A 1.0 94% 90% 90%108 23/07/02 Strathfield SRA Buy $0.34 133 5/08/03 Sell $0.14 $0.00 N/A 1.0 –59% –58% –58%112 17/09/02 cmi CMI Buy $1.25 145 17/02/04 Sell $2.21 $0.15 100% 1.4 89% 57% 57%116 12/11/02 commonwealthbank CBA Buy $27.39 Not Sold – $28.90 $12.80 100% 6.1 52% 7% 7%116 12/11/02 macquarieairports MAP Buy $0.87 171 15/03/05 Sell $3.26 $0.245 0% 2.3 303% 81% 81%116 12/11/02 nationalaustraliabank NAB Buy $32.40 Not Sold – $20.87 $11.13 93% 6.1 –1% 0% 0%117 26/11/02 macquariegroup MQG Buy $22.28 Not Sold – $28.81 $14.45 87% 6.1 94% 11% 11%118 10/12/02 tabcorp TAH Buy $10.40 136 16/09/03 Take Part Profits $11.39 $0.67 100% 0.8 16% N/A 16%119 21/01/03 Westpacbankingcorp WBC Buy $14.35 Not Sold – $16.97 $6.53 100% 5.9 64% 9% 9%121 18/02/03 greatSouthernPlant. GTP Buy $0.64 147 16/03/04 Take Part Profits $2.55 $0.10 100% 1.1 314% 274% 274%122 4/03/03 anZbank ANZ Buy $16.087 Not Sold – $15.29 $7.03 100% 5.8 39% 6% 6%122 4/03/03 Harveynorman HVN Buy $2.28 Not Sold – $2.65 $0.52 100% 5.8 39% 6% 6%127 13/05/03 gowingbros GOW Buy $1.90 Not Sold – $2.69 $0.59 100% 5.6 73% 10% 10%127 13/05/03 macquarieairports MAP Buy $1.17 171 15/03/05 Sell $3.26 $0.20 0% 1.8 196% 80% 80%129 10/06/03 aristocratleisure ALL Buy $1.15 146 2/03/04 Take Part Profits $2.73 $0.03 100% 0.7 140% N/A 140%130 24/06/03 Rocoil ROC Buy $1.13 Not Sold – $0.50 $0.00 N/A 5.5 –49% –12% –12%130 24/06/03 Santos STO Buy $5.76 254 11/08/08 – $17.28 $2.03 100% 5.1 235% 27% 27%135 2/09/03 Futuris FCL Buy $1.44 Not Sold – $0.65 $0.49 95% 5.3 –21% –4% –4%139 28/10/03 miller’sRetail MRL Buy $1.86 196 28/03/06 Sell $1.70 $0.095 100% 2.4 –3% –1% –1%140 11/11/03 anZbank ANZ Buy $16.28 Not Sold – $15.29 $6.08 100% 5.1 31% 5% 5%140 11/11/03 Westpacbankingcorp WBC Buy $15.77 Not Sold – $16.97 $6.15 100% 5.1 47% 8% 8%143 20/01/04 mmccontrarian MMA Buy $0.91 Not Sold – $0.41 $0.225 100% 4.9 –30% –7% –7%144 3/02/04 templetonglobalgrowth TGG Buy $1.10 Not Sold – $0.81 $0.19 100% 4.9 -4% –1% –1%147 16/03/04 cochlear COH Buy $19.04 Not Sold – $55.40 $4.99 100% 4.8 217% 27% 27%151 11/05/04 leightonHoldings LEI Buy $7.83 195 14/03/06 Sell $17.70 $1.02 64% 1.8 139% 61% 61%152 25/05/04 macquariegroup MQG Buy $32.75 Not Sold – $28.81 $12.21 86% 4.6 25% 5% 5%152 25/05/04 templetonglobalgrowth TGG Buy $1.13 Not Sold – $0.81 $0.19 100% 4.6 –7% –2% –2%157 3/08/04 miller’sRetail MRL Buy $1.52 196 28/03/06 Sell $1.70 $0.04 100% 1.7 14% 9% 9%159 31/08/04 infomedia IFM Buy $0.63 Not Sold – $0.29 $0.235 100% 4.3 –17% –4% –4%166 7/12/04 infomedia IFM Buy $0.74 Not Sold – $0.29 $0.216 100% 4.1 –32% –9% –9%170 1/03/05 mmccontrarian MMA Buy $1.05 Not Sold – $0.41 $0.215 100% 3.8 –40% –13% –13%177 7/06/05 Flightcentre FLT Buy $14.50 Not Sold – $7.80 $2.32 100% 3.6 –30% –10% –10%178 21/06/05 WilsoninvestmentFund WIL Buy $0.905 Not Sold – $0.53 $0.175 100% 3.5 –23% –7% –7%179 5/07/05 aRbcorporation ARP Buy $3.05 Not Sold – $2.85 $0.46 100% 3.5 9% 2% 2%




Buy [ c ontinued from page 15 ]


date Recommendation




184 13/09/05 miller’sRetail MRL Buy $0.86 196 28/03/06 Sell $1.70 $0.00 100% 0.5 98% N/A 98%187 25/10/05 carterHoltHarvey CHY Buy $2.34 196 4/04/06 Accept Offer $2.33 $0.00 0% 0.4 0% N/A 0%190 6/12/05 StWcommunications SGN Buy $3.08 Not Sold – $0.68 $0.414 100% 3.1 –64% –29% –29%200 23/05/06 Rocoil ROC Buy $3.64 Not Sold – $0.50 $0.00 N/A 2.6 –85% –52% –52%207 29/08/06 aRbcorp ARP Buy $3.14 Not Sold – $2.85 $0.35 100% 2.3 2% 1% 1%222 18/04/07 timbercorp TIM Buy $2.17 Not Sold – $0.13 $0.085 100% 1.7 –90% –75% –75%223 27/04/07 SoulsPrivateequity SOE Buy $0.22 Not Sold – $0.11 $0.01 100% 1.7 –47% –31% –31%227 3/07/07 SigmaPharmaceuticals SIP Buy $1.75 Not Sold – $1.08 $0.10 100% 1.5 –32% –23% –23%229 30/07/07 timbercorp TIM Buy $1.95 Not Sold – $0.13 $0.085 100% 1.4 –89% –79% –79%231 20/08/07 Platinumassetmgmt PTM Buy $6.25 Not Sold – $3.45 $0.24 100% 1.4 –41% –32% –32%234 26/09/07 SelectHarvests SHV Buy $6.70 Not Sold – $2.92 $0.45 100% 1.3 –50% –42% –42%235 12/10/07 Platinumassetmgmt PTM Buy $6.17 Not Sold – $3.45 $0.24 100% 1.2 –40% –34% –34%235 15/10/07 RamSHomeloansgroup RHG Buy $0.30 Not Sold – $0.13 $0.00 100% 1.2 –57% –50% –50%237 12/11/07 Servcorp SRV Buy $5.20 Not Sold – $2.88 $0.25 100% 1.1 –40% –36% –36%238 3/12/07 SigmaPharmaceuticals SIP Buy $1.64 Not Sold – $1.08 $0.07 100% 1.1 –30% –28% –28%241 4/02/08 SoulsPrivateequity SOE Buy $0.21 Not Sold – $0.11 $0.00 100% 0.9 –50% N/A –50%242 22/02/08 mortgagechoice MOC Buy $1.74 Not Sold – $0.76 $0.14 100% 0.9 –48% N/A –48%244 17/03/08 australianWealthmgmt AUW Buy $1.53 Not Sold – $1.10 $0.055 100% 0.8 –25% N/A –25%244 14/03/08 macquariegroup MQG Buy $46.25 Not Sold – $28.81 $3.45 94% 0.8 –30% N/A –30%245 31/03/08 Platinumassetmgmt PTM Buy $5.09 Not Sold – $3.45 $0.12 100% 0.8 –30% N/A –30%246 18/04/08 gtPtReeS2 GTPGA Buy $74.75 Not Sold – $21.00 $3.23 100% 0.7 –68% N/A –68%248 7/05/08 infomedia IFM Buy $0.42 Not Sold – $0.29 $0.014 100% 0.7 –28% N/A –28%250 16/06/08 StWcommunications SGN Buy $1.68 Not Sold – $0.68 $0.048 100% 0.5 –57% N/A –57%252 7/07/08 australianWealthmgmt AUW Buy $1.42 Not Sold – $1.10 $0.055 100% 0.5 –19% N/A –19%256 4/09/08 mortgagechoice MOC Buy $1.08 Not Sold – $0.76 $0.08 100% 0.3 –22% N/A –22%257 18/09/08 Rocoil ROC Buy $0.91 Not Sold – $0.50 $0.00 N/A 0.3 –45% N/A –45%258 1/10/08 Harveynorman HVN Buy $2.99 Not Sold – $2.65 $0.07 100% 0.3 –9% N/A –9%259 10/10/08 corporateexpress CXP Buy $4.49 Not Sold – $4.20 $0.00 100% 0.2 –6% N/A –6%261 12/11/08 Flightcentre FLT Buy $10.86 Not Sold – $7.80 $0.00 100% 0.1 –28% N/A –28%261 13/11/08 WHkgroup WHG Buy $0.74 Not Sold – $0.89 $0.00 100% 0.1 21% N/A 21%262 25/11/08 Perpetual PPT Buy $26.92 Not Sold – $37.09 $0.00 100% 0.1 38% N/A 38%80 29/05/01 brazin BRZ Hold/Buy $1.43 122 4/03/03 Sell/Switch $1.20 $0.275 100% 1.8 3% 2% 2%numberofbuyrecommendations 84 averageannualisedReturn 3.8%



long term Buy


date Recommendation




80 29/05/01 abigroup ABG Long Term Buy $2.12 139 22/01/04 Hold $3.90 $0.31 100% 2.6 99% 30% 30%80 29/05/01 adsteam ADZ Long Term Buy $2.17 132 22/07/03 Sell Down $1.50 $0.23 100% 2.1 –20% –10% –10%80 12/06/01 aristocratleisure ALL Long Term Buy $6.70 146 2/03/04 Take Part Profits $2.73 $0.27 100% 2.7 –55% –26% –26%80 12/06/01 cSR CSR Long Term Buy $6.73 157 3/08/04 Sell $8.36 $0.65 68% 3.1 34% 10% 10%81 12/06/01 greatSouthernPlant. GTP Long Term Buy $0.65 147 16/03/04 Take Part Profits $2.55 $0.46 100% 2.8 363% 74% 74%82 26/06/01 amcor AMC Long Term Buy $6.73 123 18/03/03 Take Part Profits/Hold $8.11 $0.57 50% 1.7 29% 16% 16%82 26/06/01 miller’sRetail MRL Long Term Buy $3.475 196 28/03/06 Sell $1.70 $0.323 100% 4.8 –42% –11% –11%82 26/06/01 Simsmetal(Simsgroup) SMS Long Term Buy $5.72 136 16/09/03 Take Part Profits $10.60 $0.76 94% 2.2 99% 36% 36%82 26/06/01 Suncorpmetway SME (SUN) Long Term Buy $14.76 168 1/02/05 Take Part Profits $18.55 $2.08 100% 3.6 40% 10% 10%82 26/06/01 WestfieldHoldings WSF Long Term Buy $13.44 Not Sold – – $5.092 12% 7.5 35% 4% 4%83 10/07/01 tabQld(unitab) TQL (UTB) Long Term Buy $2.62 158 17/08/04 Take Part Profits $9.31 $0.70 100% 3.1 282% 54% 54%84 24/07/01 tabcorp TAH Long Term Buy $9.08 136 16/09/03 Take Part Profits $11.39 $1.56 100% 2.1 43% 18% 18%85 7/08/01 Hillsmotorway HLY Long Term Buy $5.21 174 26/04/05 Sell $10.94 $0.91 0% 3.7 127% 25% 25%85 7/08/01 Pacifica PBB Long Term Buy $3.84 164 9/11/04 Sell $3.74 $0.605 91% 3.3 13% 4% 4%86 21/08/01 australianinfrastructure AIX Long Term Buy $1.625 167 18/01/05 Sell $2.56 $0.395 39% 3.4 82% 19% 19%86 21/08/01 brazin BRZ Long Term Buy $1.34 122 4/03/03 Sell/Switch $1.20 $0.175 100% 1.5 3% 2% 2%86 21/08/01 WoodsidePetroleum WPL Long Term Buy $13.69 254 11/08/08 – $51.800 $5.60 100% 7.0 319% 23% 23%87 4/09/01 bHPbilliton BHP Long Term Buy $8.815 167 18/01/05 Take Part Profits $15.68 $0.851 100% 3.4 88% 20% 20%87 4/09/01 langcorp(Patrickcorp) LAC (PRK) Long Term Buy $11.19 108 23/07/02 Sell/Switch $15.36 $0.18 100% 0.9 39% N/A 39%87 4/09/01 maynenick.(maynegrp) MAY Long Term Buy $6.24 90 16/10/01 Take Part Profits $7.38 $0.00 N/A 0.1 18% N/A 18%87 4/09/01 Singletongrp(StWcomms) SGN Long Term Buy $3.82 Not Sold – – $1.198 78% 7.3 –51% –9% –9%88 18/09/01 bramblesindustries BIL Long Term Buy $9.92 153 8/06/04 Sell $6.04 $0.50 100% 2.7 –34% –14% –14%88 18/09/01 Foster’sgroup FGL Long Term Buy $4.58 186 11/10/05 Take Part Profits $5.49 $0.75 100% 4.1 36% 8% 8%88 18/09/01 HarveyWorldtravel HWT Long Term Buy $0.50 146 2/03/04 Take Part Profits $1.40 $0.055 100% 2.5 191% 54% 54%88 18/09/01 Southcorp SRP Long Term Buy $7.20 102 30/04/02 Sell/Switch $5.81 $0.00 N/A 0.6 –19% N/A –19%88 18/09/01 tollHoldings TOL Long Term Buy $5.67 91 30/10/01 Take Part Profits $6.81 $0.00 N/A 0.1 20% N/A 20%89 2/10/01 amalgamatedHoldings AHD Long Term Buy $1.64 97 19/02/02 Take Profits $2.76 $0.00 N/A 0.4 68% N/A 68%89 2/10/01 commonwealthbank CBA Long Term Buy $27.85 Not Sold – – $14.30 100% 7.2 55% 6% 6%90 16/10/01 australianinfrastructure AIX Long Term Buy $1.548 167 18/01/05 Sell $2.56 $0.395 39% 3.3 91% 22% 22%90 16/10/01 coloradogroup CDO Long Term Buy $1.81 103 14/05/02 Sell/Switch $3.05 $0.07 100% 0.6 72% N/A 72%90 16/10/01 Hill50 HFY Long Term Buy $0.91 99 19/03/02 Sell/Accept Offer $1.40 $0.045 0% 0.4 59% N/A 59%90 16/10/01 Riotinto RIO Long Term Buy $33.70 254 11/08/08 Sell $113.290 $9.922 100% 6.8 266% 21% 21%90 16/10/01 SonicHealthcare SHL Long Term Buy $8.10 99 19/03/02 Sell $6.00 $0.00 N/A 0.4 –26% N/A –26%




long term Buy [ c ontinued from page 17 ]


date Recommendation




92 13/11/01 aPnnews&media APN Long Term Buy $3.452 218 22/02/07 Sell $5.98 $0.99 52% 5.3 102% 14% 14%92 13/11/01 Perpetualtrustees PPT Long Term Buy $38.10 159 31/08/04 Take Part Profits $46.00 $7.40 100% 2.8 40% 13% 13%93 27/11/01 telstra TLS Long Term Buy $5.41 Not Sold – – $2.05 100% 7.1 9% 1% 1%94 11/12/01 JamesHardie JHX Long Term Buy $4.85 156 20/07/04 Sell $6.07 $0.871 0% 2.6 43% 15% 15%95 22/01/02 Publishing&broadcasting PBL Long Term Buy $9.72 159 31/08/04 Take Part Profits $13.64 $0.61 100% 2.6 47% 16% 16%96 5/02/02 downeredi DOW Long Term Buy $0.80 130 24/06/03 Take Profits $0.74 $0.029 0% 1.4 –4% –3% –3%96 5/02/02 unitedenergy UEL Long Term Buy $2.42 130 24/06/03 Accept Offer $3.15 $0.273 80% 1.4 41% 28% 28%97 19/02/02 auriongold AOR Long Term Buy $2.85 112 17/09/02 Sell/Switch $3.55 $0.00 N/A 0.6 25% N/A 25%98 5/03/02 FantasticHoldings FAN Long Term Buy $1.55 207 29/08/06 Sell $2.85 $0.367 100% 4.5 176% 25% 25%98 5/03/02 leightonHoldings LEI Long Term Buy $10.50 195 14/03/06 Sell $17.70 $2.06 75% 4.0 88% 17% 17%98 5/03/02 maynenick.(maynegrp) MAY Long Term Buy $5.72 154 22/06/04 Sell $3.18 $0.225 14% 2.3 –40% –20% –20%99 19/03/02 transurban TCL Long Term Buy $3.90 131 8/07/03 Take Profits $4.66 $0.06 0% 1.3 21% 16% 16%100 2/04/02 bankofQueensland BOQ Long Term Buy $7.05 125 15/04/03 Sell/Switch $7.70 $0.46 100% 1.0 16% 15% 15%100 2/04/02 oPSm OPS Long Term Buy $3.50 137 15/02/05 Hold $4.20 $0.40 100% 2.9 31% 10% 10%100 2/04/02 Simsmetal(Simsgroup) SMS Long Term Buy $6.52 136 16/09/03 TPP $10.60 $0.42 89% 1.5 69% 43% 43%101 16/04/02 computershare CPU Long Term Buy $2.56 Not Sold – – $0.775 27% 6.7 235% 20% 20%102 30/04/02 WoodsidePetroleum WPL Long Term Buy $13.53 254 11/08/08 Sell $51.8 $4.90 100% 6.3 319% 26% 26%103 14/05/02 colesmyer CML Long Term Buy $6.49 129 10/06/03 Sell $6.94 $0.255 100% 1.1 11% 10% 10%104 28/05/02 Harveynorman HVN Long Term Buy $3.00 Not Sold – – $0.55 100% 6.6 6% 1% 1%104 28/05/02 tab TAB Long Term Buy $3.04 149 13/04/04 Sell $4.69 $0.31 100% 1.9 64% 30% 30%105 11/06/02 nationalaustraliabank NAB Long Term Buy $36.42 Not Sold – – $11.13 93% 6.6 –12% –2% –2%105 11/06/02 Strathfield SRA Long Term Buy $0.49 133 5/08/03 Sell $0.14 $0.00 N/A 1.2 –71% –66% –66%107 9/07/02 gowingbros GOW Long Term Buy $1.75 Not Sold – – $0.69 100% 6.5 93% 11% 11%107 9/07/02 greatSouthernPlant. GTP Long Term Buy $0.58 147 16/03/04 Take Part Profits $2.55 $0.10 100% 1.7 357% 146% 146%110 20/08/02 tabQld(unitab) TQL (UTB) Long Term Buy $4.00 158 17/08/04 Take Part Profits $9.31 $0.58 100% 2.0 147% 58% 58%111 3/09/02 computershare CPU Long Term Buy $2.31 Not Sold – – $0.775 27% 6.3 271% 23% 23%112 17/09/02 macquarieairports MAP Long Term Buy $1.27 171 15/03/05 Sell $3.26 $0.245 0% 2.5 176% 50% 50%112 17/09/02 Perpetualtrustees PPT Long Term Buy $37.00 159 31/08/04 Take Part Profits $46.00 $7.40 100% 2.0 44% 21% 21%112 17/09/02 Strathfield SRA Long Term Buy $0.40 133 5/08/03 Sell $0.14 $0.00 N/A 0.9 –65% N/A –65%113 1/10/02 tempoServices TEM Long Term Buy $1.93 150 27/04/04 Sell $1.14 $0.15 100% 1.6 –33% –23% –23%115 29/10/02 Sonsofgwalia SGW Long Term Buy $2.66 128 27/05/03 Sell Down/Hold $2.14 $0.00 0% 0.6 –20% N/A –20%116 12/11/02 anZbank ANZ Long Term Buy $17.627 Not Sold – – $7.03 100% 6.1 27% 4% 4%116 12/11/02 Westpacbankingcorp WBC Long Term Buy $14.09 Not Sold – – $6.89 100% 6.1 69% 9% 9%117 26/11/02 cmi CMI Long Term Buy $1.61 145 17/02/04 Sell $2.21 $0.10 100% 1.2 43% 34% 34%119 21/01/03 macquarieairports MAP Long Term Buy $1.16 171 15/03/05 Sell $3.26 $0.20 0% 2.2 198% 66% 66%






date Recommendation




119 21/01/03 Sydneyaquarium SAQ Long Term Buy $4.42 178 21/06/05 Take Part Profits $5.64 $0.68 100% 2.4 43% 16% 16%120 4/02/03 australianinfrastructure AIX Long Term Buy $1.287 167 18/01/05 Sell $2.56 $0.23 35% 2.0 117% 49% 49%121 18/02/03 tennetworkHoldings TEN Long Term Buy $2.11 160 14/09/04 Take Part Profits $3.50 $0.285 100% 1.6 79% 45% 45%122 4/03/03 aristocratleisure ALL Long Term Buy $1.76 146 2/03/04 Take Part Profits $2.73 $0.03 100% 1.0 57% N/A 57%123 18/03/03 templetonglobalgrowth TGG Long Term Buy $0.97 Not Sold – $0.19 100% 5.8 8% 1% 1%124 1/04/03 Sevennetwork SEV Long Term Buy $3.73 136 16/09/03 Take Profits $5.50 $0.00 N/A 0.5 47% N/A 47%124 1/04/03 Spotlessgroup SPT Long Term Buy $3.97 218 19/02/07 Sell $5.05 $0.825 94% 3.9 48% 11% 11%125 14/04/03 anZbank ANZ Long Term Buy $16.966 Not Sold – – $7.03 100% 5.7 32% 5% 5%125 14/04/03 Futuris FCL Long Term Buy $1.57 Not Sold – – $0.49 95% 5.7 –28% –6% –6%126 29/04/03 Harveynorman HVN Long Term Buy $2.25 Not Sold – – $0.50 100% 5.7 40% 6% 6%128 27/05/03 cabcharge CAB Long Term Buy $2.90 Not Sold – – $1.248 100% 5.6 162% 19% 19%128 27/05/03 greatSouthernPlant. GTP Long Term Buy $0.83 147 16/03/04 Take Part Profits $2.55 $0.08 100% 0.8 217% N/A 217%129 10/06/03 commonwealthbank CBA Long Term Buy $29.50 Not Sold – $12.11 100% 5.6 39% 6% 6%129 10/06/03 tollHoldings TOL Long Term Buy $7.00 197 11/04/06 Take Part Profits $13.44 $0.69 100% 2.8 102% 28% 28%130 24/06/03 aristocratleisure ALL Long Term Buy $1.42 146 2/03/04 Take Part Profits $2.73 $0.03 100% 0.7 94% N/A 94%130 24/06/03 Fletcherbuilding FBU Long Term Buy $3.30 225 25/05/07 Take Part Profits $11.70 $1.375 * 3.9 296% 42% 42%130 24/06/03 macquarieairports MAP Long Term Buy $1.40 171 15/03/05 Sell $3.26 $0.15 0% 1.7 144% 68% 68%130 24/06/03 Westpacbankingcorp WBC Long Term Buy $16.62 Not Sold – – $6.15 100% 5.5 39% 6% 6%131 8/07/03 gowingbros GOW Long Term Buy $2.16 Not Sold – – $0.59 100% 5.5 52% 8% 8%131 8/07/03 Suncorpmetway SUN Long Term Buy $12.28 168 1/02/05 Take Part Profits $18.55 $1.00 100% 1.6 59% 35% 35%133 5/08/03 macquariegroup MQG Long Term Buy $30.63 Not Sold – $13.43 86% 5.4 38% 6% 6%135 2/09/03 miagroup MIA Long Term Buy $0.65 157 3/08/04 Sell $1.03 $0.032 100% 0.9 63% N/A 63%135 2/09/03 telstra TLS Long Term Buy $5.15 Not Sold – – $1.68 100% 5.3 7% 1% 1%137 30/09/03 Futuris FCL Long Term Buy $1.58 Not Sold – – $0.49 95% 5.3 –28% –6% –6%140 11/11/03 WilsoninvestmentFund WIL Long Term Buy $0.99 Not Sold – – $0.22 100% 5.1 –25% –5% –5%141 25/11/03 aust.leisure&Hospitality ALH Long Term Buy $2.27 163 26/10/04 Accept Offer $3.76 $0.083 100% 0.9 69% N/A 69%142 9/12/03 Santos STO Long Term Buy $6.40 254 11/08/08 Sell $17.28 $1.88 100% 4.7 199% 26% 26%143 20/01/04 cochlear COH Long Term Buy $22.00 Not Sold – – $5.34 100% 4.9 176% 23% 23%144 3/02/04 Westpacbankingcorp WBC Long Term Buy $16.39 Not Sold – – $5.75 100% 4.9 39% 7% 7%145 17/02/04 Harveynorman HVN Long Term Buy $2.84 Not Sold – – $0.47 100% 4.9 10% 2% 2%145 17/02/04 Rocoil ROC Long Term Buy $1.67 Not Sold – – $0.00 N/A 4.9 –66% –20% –20%145 17/02/04 templetonglobalgrowth TGG Long Term Buy $1.18 Not Sold – – $0.19 100% 4.9 –11% –2% –2%147 16/03/04 anZbank ANZ Long Term Buy $19.11 Not Sold – – $6.08 100% 4.8 12% 2% 2%147 16/03/04 macquariegroup MQG Long Term Buy $34.17 Not Sold – – $12.91 86% 4.8 22% 4% 4%150 27/04/04 nationalaustraliabank NAB Long Term Buy $29.47 Not Sold – – $8.75 93% 4.7 1% 0% 0%





date Recommendation




151 11/05/04 Westpacbankingcorp WBC Long Term Buy $16.89 Not Sold – – $5.75 100% 4.6 35% 7% 7%155 6/07/04 abbgrain ABB Long Term Buy $7.00 Not Sold – – $1.06 100% 4.5 24% 5% 5%155 6/07/04 Westfieldgroup WDC Long Term Buy $15.38 Not Sold – – $4.249 4% 4.5 12% 3% 3%157 3/08/04 tapoil TAP Long Term Buy $1.66 182 16/08/05 Take Part Profits $3.18 $0.00 N/A 1.0 92% 87% 87%158 17/08/04 aRbcorp ARP Long Term Buy $3.53 Not Sold – – $0.76 100% 4.4 2% 1% 1%159 31/08/04 leightonHoldings LEI Long Term Buy $9.80 195 14/03/06 Sell $17.70 $1.02 64% 1.5 91% 52% 52%159 31/08/04 Santos STO Long Term Buy $6.60 254 11/08/08 Sell $17.28 $1.58 100% 3.9 186% 30% 30%161 28/09/04 cochlear COH Long Term Buy $24.00 Not Sold – – $4.55 100% 4.3 150% 24% 24%161 28/09/04 templetonglobalgrowth TGG Long Term Buy $1.18 Not Sold – – $0.19 100% 4.3 –11% –3% –3%163 26/10/04 abbgrain ABB Long Term Buy $7.05 Not Sold – – $0.78 100% 4.2 19% 4% 4%163 26/10/04 macquariegroup MQG Long Term Buy $39.00 Not Sold – – $12.21 86% 4.2 5% 1% 1%163 26/10/04 StWcommunications SGN Long Term Buy $3.20 Not Sold – – $0.823 60% 4.2 –53% –17% –17%165 23/11/04 infomedia IFM Long Term Buy $0.81 Not Sold – – $0.216 100% 4.1 –38% –11% –11%166 7/12/04 mmccontrarian MMA Long Term Buy $1.07 Not Sold – – $0.215 100% 4.1 –42% –12% –12%167 18/01/05 Rocoil ROC Long Term Buy $1.85 Not Sold – – $0.00 N/A 4.0 –71% –27% –27%168 1/02/05 Flightcentre FLT Long Term Buy $15.92 Not Sold – – $2.545 100% 3.9 –35% –10% –10%168 1/02/05 HPal HPX Long Term Buy $1.75 216 30/01/07 Sell $2.28 $0.28 100% 2.0 46% 21% 21%169 15/02/05 centuryaustralia CYA Long Term Buy $1.05 Not Sold – – $0.31 100% 3.9 –5% –1% –1%170 1/03/05 aRbcorp ARP Long Term Buy $3.78 Not Sold – – $0.50 100% 3.8 –11% –3% –3%171 15/03/05 templetonglobalgrowth TGG Long Term Buy $1.20 Not Sold – – $0.16 100% 3.8 –15% –4% –4%172 29/03/05 RebelSport REB Long Term Buy $2.71 218 23/02/07 Sell $4.57 $0.25 100% 1.9 78% 35% 35%172 29/03/05 WilsoninvestmentFund WIL Long Term Buy $0.95 Not Sold – – $0.195 100% 3.8 –24% –7% –7%173 12/04/05 mortgagechoice MOC Long Term Buy $1.00 197 11/04/06 Take Part Profits $2.48 $0.13 100% 1.0 161% N/A 161%174 26/04/05 Hgl HNG Long Term Buy $1.75 Not Sold – – $0.483 100% 3.7 –12% -4% –4%175 10/05/05 Futuris FCL Long Term Buy $1.81 Not Sold – – $0.33 100% 3.6 –46% –16% –16%176 24/05/05 australianWealthmgmt AUW Long Term Buy $0.975 Not Sold – – $0.29 100% 3.6 43% 10% 10%176 24/05/05 JbHi-Fi JBH Long Term Buy $3.43 196 28/03/06 Take Part Profits $4.90 $0.07 100% 0.8 45% N/A 45%177 7/06/05 Servcorp SRV Long Term Buy $2.60 Not Sold – – $0.63 100% 3.6 35% 9% 9%178 21/06/05 coloradogroup CDO Long Term Buy $4.74 209 3/10/06 Accept Offer $4.18 $1.16 100% 1.3 13% 10% 10%179 5/07/05 FantasticHoldings FAN Long Term Buy $3.50 207 29/08/06 Sell $2.85 $0.110 100% 1.2 –7% –6% –6%181 2/08/05 aRbcorp ARP Long Term Buy $3.35 Not Sold – – $0.460 100% 3.4 –1% 0% 0%185 27/09/05 tattersall’s TTS Long Term Buy $3.27 Not Sold – – $0.58 100% 3.3 3% 1% 1%186 11/10/05 oFmgroup OFG Long Term Buy $1.95 Not Sold – – $0.390 100% 3.2 –57% –23% –23%187 25/10/05 cochlear COH Long Term Buy $36.39 Not Sold – – $3.75 100% 3.2 63% 16% 16%187 25/10/05 telstra TLS Long Term Buy $4.22 Not Sold – – $0.90 100% 3.2 12% 4% 4%





date Recommendation




188 8/11/05 Futuris FCL Long Term Buy $1.91 Not Sold – – $0.280 100% 3.1 –52% –21% –21%189 22/11/05 Fleetwood FWD Long Term Buy $7.41 Not Sold – – $1.885 100% 3.1 –25% –9% –9%189 22/11/05 volante VGL Long Term Buy $0.96 196 4/04/06 Accept Offer $1.05 $0.100 100% 0.4 20% N/A 20%190 6/12/05 Wattyl WYL Long Term Buy $2.50 193 15/02/06 Sell $3.570 $0.00 100% 0.2 43% N/A 43%191 17/01/06 StWcommunications SGN Long Term Buy $3.03 Not Sold – – $0.414 100% 3.0 –64% –29% –29%192 31/01/06 tennetworkHoldings TEN Long Term Buy $2.97 Not Sold – – $0.36 100% 2.9 –48% –20% –20%193 14/02/06 Pub.&broad.(cWn&cmJ) PBL Long Term Buy $16.20 Not Sold – – $4.845 91% 2.9 –22% –8% –8%193 15/02/06 gWainternational GWT Long Term Buy $3.01 261 6/11/08 Sell $2.90 $0.64 100% 2.7 18% 6% 6%195 14/03/06 aPnnews&media APN Long Term Buy $4.88 218 22/02/07 Sell $5.980 $0.251 30% 0.9 28% N/A 28%197 11/04/06 Premiuminvestors PRV Long Term Buy $1.02 Not Sold – – $0.205 100% 2.7 –29% –12% –12%199 9/05/06 burnsPhilp BPC Long Term Buy $0.97 211 31/10/06 Accept Offer $1.10 $0.00 0% 0.5 14% N/A 14%200 23/05/06 Salmat SLM Long Term Buy $2.80 Not Sold – – $0.56 100% 2.6 34% 12% 12%201 6/06/06 tapoil TAP Long Term Buy $1.87 237 7/11/07 Sell $2.470 $0.00 N/A 1.4 32% 22% 22%203 4/07/06 SPtelemedia SOT Long Term Buy $0.77 233 25/09/07 Sell $0.450 $0.139 100% 1.2 –24% –20% –20%205 1/08/06 corporateexpress CXP Long Term Buy $5.75 Not Sold – – $0.615 100% 2.4 –16% –7% –7%206 15/08/06 cabcharge CAB Long Term Buy $6.43 Not Sold – – $0.77 100% 2.4 11% 4% 4%206 15/08/06 WilsoninvestmentFund WIL Long Term Buy $0.98 Not Sold – – $0.13 100% 2.4 –33% –16% –16%209 26/09/06 gowingbros GOW Long Term Buy $3.10 Not Sold – – $0.35 100% 2.3 –2% –1% –1%209 26/09/06 graincorp GNC Long Term Buy $7.68 Not Sold – – $0.10 100% 2.3 –23% –11% –11%209 26/09/06 treasurygroup TRG Long Term Buy $10.90 Not Sold – – $1.20 100% 2.3 –47% –25% –25%210 10/10/06 aRbcorp ARP Long Term Buy $3.70 Not Sold – – $0.28 100% 2.2 –15% –7% –7%210 10/10/06 Qmtechnologies QMT Long Term Buy $2.61 243 5/03/08 Sell $3.400 $0.29 100% 1.4 41% 28% 28%215 16/01/07 WHSoulPattinson SOL Long Term Buy $8.80 Not Sold – – $0.585 100% 2.0 13% 6% 6%215 16/01/07 SPtelemedia SOT Long Term Buy $0.82 233 25/09/07 Sell $0.450 $0.127 100% 0.7 –30% N/A –30%216 30/01/07 brickworks BKW Long Term Buy $12.45 Not Sold – – $0.77 100% 1.9 –16% –9% –9%216 30/01/07 goodmanFielder GFF Long Term Buy $2.39 Not Sold – – $0.27 45% 1.9 –33% –19% –19%218 15/02/07 cochlear COH Long Term Buy $59.33 Not Sold – – $2.75 100% 1.9 –2% –1% –1%219 1/03/07 Flightcentre FLT Long Term Buy $15.00 Not Sold – – $1.32 100% 1.8 –39% –24% –24%223 4/05/07 Fisher&Paykelappliances FPA Long Term Buy $3.21 Not Sold – – $0.254 0% 1.7 –58% –41% –41%224 17/05/07 SigmaPharmaceuticals SIP Long Term Buy $2.42 Not Sold – – $0.10 100% 1.6 –51% –36% –36%225 4/06/07 Platinumassetmgmt PTM Long Term Buy $7.90 Not Sold – – $0.24 100% 1.6 –53% –38% –38%225 4/06/07 SoulsPrivateequity SOE Long Term Buy $0.24 Not Sold – – $0.01 100% 1.6 –52% –37% –37%229 30/07/07 SelectHarvests SHV Long Term Buy $10.40 Not Sold – – $0.80 100% 1.4 –64% –52% –52%229 31/07/07 Flightcentre FLT Long Term Buy $17.55 Not Sold – – $1.32 100% 1.4 –48% –37% –37%230 7/08/07 corporateexpress CXP Long Term Buy $6.35 Not Sold – – $0.40 100% 1.4 –28% –21% –21%






date Recommendation




230 10/08/07 Servcorp SRV Long Term Buy $4.80 Not Sold – – $0.32 100% 1.4 –33% –25% –25%231 16/08/07 StWcommunications SGN Long Term Buy $2.22 Not Sold – – $0.168 100% 1.4 –62% –50% –50%234 8/10/07 Platinumassetmgmt PTM Long Term Buy $6.93 Not Sold – – $0.24 100% 1.2 –47% –40% –40%237 16/11/07 macquariegroup MQG Long Term Buy $80.55 Not Sold – – $4.90 100% 1.1 –58% –54% –54%240 24/01/08 australianWealthmgmt AUW Long Term Buy $1.92 Not Sold – – $0.105 100% 0.9 –37% N/A –37%241 7/02/08 Perpetual PPT Long Term Buy $55.70 Not Sold – – $3.30 100% 0.9 –27% N/A –27%244 14/03/08 Harveynorman HVN Long Term Buy $3.63 Not Sold – – $0.14 100% 0.8 –23% N/A –23%244 13/03/08 tattsgroup TTS Long Term Buy $3.39 Not Sold – – $0.105 100% 0.8 –15% N/A –15%247 24/04/08 australianWealthmgmt AUW Long Term Buy $1.98 Not Sold – – $0.055 100% 0.7 –42% N/A –42%247 24/04/08 macquarieairports MAP Long Term Buy $3.05 Not Sold – – $0.27 0% 0.7 –12% N/A –12%247 29/04/08 macquariegroup MQG Long Term Buy $61.85 Not Sold – – $3.45 94% 0.7 –48% N/A –48%249 23/05/08 nibHoldings NHF Long Term Buy $0.70 Not Sold – – $0.021 100% 0.6 14% N/A 14%250 16/06/08 aristocratleisure ALL Long Term Buy $6.76 Not Sold – – $0.16 88% 0.5 –40% N/A –40%251 23/06/08 Flightcentre FLT Long Term Buy $17.60 Not Sold – – $0.485 100% 0.5 –53% N/A –53%252 3/07/08 cochlear COH Long Term Buy $44.00 Not Sold – – $0.80 100% 0.5 28% N/A 28%252 11/07/08 FantasticHoldings FAN Long Term Buy $2.08 Not Sold – – $0.062 100% 0.5 –6% N/A –6%253 18/07/08 aPnnews&media APN Long Term Buy $3.33 Not Sold – – $0.105 0% 0.5 –22% N/A –22%253 28/07/08 HunterHallglobalvalue HHV Long Term Buy $0.81 Not Sold – – $0.00 100% 0.4 –31% N/A –31%255 25/08/08 cabcharge CAB Long Term Buy $6.75 Not Sold – – $0.34 100% 0.4 –1% N/A –1%259 10/10/08 billabonginternational BBG Long Term Buy $10.62 Not Sold – – $0.00 100% 0.2 –26% N/A –26%259 10/10/08 Seek SEK Long Term Buy $4.44 Not Sold – – $0.00 100% 0.2 –29% N/A –29%259 8/10/08 WHkgroup WHG Long Term Buy $1.02 Not Sold – – $0.00 100% 0.2 –13% N/A –13%262 25/11/08 Fleetwood FWD Long Term Buy $4.35 Not Sold – – $0.00 100% 0.1 –16% N/A –16%262 21/11/08 macquariegroup MQG Long Term Buy $26.44 Not Sold – – $1.45 80% 0.1 14% N/A 14%262 25/11/08 treasurygroup TRG Long Term Buy $5.21 Not Sold – – $0.00 100% 0.1 –13% N/A –13%numberoflongtermbuyrecommendations 198 averageannualisedReturn 7.9%

*taxadvantageddistributions(credits)


Buy for yield


date Recommendation




83 10/07/01 centralequity CEQ Buy For Yield $2.035 136 16/09/03 Sell $2.04 $0.24 100% 2.2 12% 5% 5%83 10/07/01 envestra ENV Buy For Yield $0.80 108 23/07/02 Sell $0.84 $0.095 0% 1.0 17% 16% 16%83 24/07/01 australand ALZ Buy For Yield $1.60 136 16/09/03 Sell $1.75 $0.27 89% 2.1 26% 11% 11%87 4/09/01 Sydneyaquarium SAQ Buy For Yield $3.60 178 21/06/05 Take Part Profits $5.64 $1.03 100% 3.8 85% 18% 18%89 2/10/01 unitedenergy UEL Buy For Yield $2.79 130 24/06/03 Accept Offer $3.15 $0.273 80% 1.7 23% 13% 13%91 30/10/01 Westfieldtrust WFT Buy For Yield $3.44 – Not Sold – $3.63 $1.913 3% 7.2 62% 7% 7%93 27/11/01 australianPipelinetrust APA Buy For Yield $2.66 172 29/03/05 Sell $3.85 $0.636 11% 3.3 69% 17% 17%93 27/11/01 generalPropertytrust GPT Buy For Yield $2.76 158 17/08/04 Sell $3.52 $0.575 0% 2.7 48% 16% 16%94 11/12/01 Stocklandgroup SGP Buy For Yield $4.38 164 9/11/04 Sell $5.96 $0.988 13% 2.9 59% 17% 17%95 22/01/02 nationalFoods NFD Buy For Yield/Hold $2.97 176 24/05/05 Accept Offer $6.40 $0.73 100% 3.3 140% 30% 30%95 22/01/02 PaperlinX PPX Buy For Yield $5.05 157 3/08/04 Sell $5.32 $0.68 59% 2.5 19% 7% 7%95 22/01/02 Westfieldamericatrust WFA Buy For Yield $1.91 – Not Sold – $1.94 $1.11 3% 6.9 60% 7% 7%96 5/02/02 ingofficeFund IOF Buy For Yield $1.18 160 14/09/04 Sell $1.29 $0.26 0% 2.6 31% 11% 11%96 5/02/02 Portmanmining PMM Buy For Yield $1.76 133 5/08/03 Sell $1.35 $0.14 100% 1.5 –15% –11% –11%99 19/03/02 Simsmetal(Simsgroup) SMS Buy For Yield $6.93 136 16/09/03 Take Part Profits $10.60 $0.59 92% 1.5 61% 38% 38%100 2/04/02 macquariegoodmanind. MGI Buy For Yield $1.43 163 26/10/04 Sell $1.95 $0.355 0% 2.6 61% 20% 20%102 30/04/02 gandelRetailtrust(cFSgandel)GAN Buy For Yield $1.15 192 31/01/06 Take Part Profits $1.91 $0.403 0% 3.8 101% 20% 20%102 30/04/02 gasnet GAS Buy For Yield $1.94 210 17/10/06 Accept Offer $2.99 $0.95 0% 4.5 103% 17% 17%104 28/05/02 macquariecountrywide MCW Buy For Yield $1.68 177 7/06/05 Sell $2.00 $0.42 0% 3.0 44% 13% 13%110 20/08/02 computershareResetPrefsCPUPA Buy For Yield $86.50 151 1/05/04 Take Part Profits $105.30 $8.258 100% 1.7 31% 17% 17%111 3/09/02 FkP FKP Buy For Yield $1.25 120 4/02/03 Take Part Profits $1.48 $0.05 100% 0.4 22% N/A 22%124 1/04/03 deutschediviersifiedFund DDF Buy For Yield $1.18 158 17/08/04 Sell $1.25 $0.117 0% 1.4 16% 11% 11%137 30/09/03 generalPropertytrust GPT Buy For Yield $2.75 158 17/08/04 Sell $3.52 $0.22 0% 0.9 36% N/A 36%140 11/11/03 gasnet GAS Buy For Yield $2.06 210 17/10/06 Accept Offer $2.99 $0.62 0% 2.9 75% 21% 21%142 9/12/03 australianPipelinetrust APA Buy For Yield $2.55 172 29/03/05 Sell $3.85 $0.261 27% 1.3 61% 44% 44%171 15/03/05 Pub.&broad.PaRS CMJHA Buy For Yield $101.95 226 29/06/07 Redeemed $100.00 $17.842 0% 2.3 16% 7% 7%171 15/03/05 WoolworthsWinS WOWHA Buy For Yield $103.49 201 5/06/06 Redeemed $100.00 $9.41 0% 1.2 6% 5% 5%173 12/04/05 comm.bankPeRlS CBAPA Buy For Yield $203.85 195 6/04/06 Redeemed $200.00 $11.36 100% 1.0 4% N/A 4%186 11/10/05 gtPtReeS2 GTPGA Buy For Yield $103.70 – Not Sold – $21.00 $22.439 100% 3.2 –58% –24% –24%187 25/10/05 tennetworkHoldings TEN Buy For Yield $3.41 – Not Sold – $1.17 $0.48 100% 3.2 –52% –20% –20%190 6/12/05 Pub.&broad.PaRS CMJHA Buy For Yield $103.20 226 29/06/07 Redeemed $100.00 $12.006 0% 1.6 9% 5% 5%206 15/08/06 gtPtReeS2 GTPGA Buy For Yield $99.25 – Not Sold – $21.00 $16.009 100% 2.4 –63% –34% –34%216 30/01/07 gtPtReeS2 GTPGA Buy For Yield $101.50 – Not Sold – $21.00 $12.80 100% 1.9 –67% –44% –44%230 9/08/07 tennetworkHoldings TEN Buy For Yield $2.55 – Not Sold – $1.17 $0.155 100% 1.4 –48% –37% –37%232 10/09/07 gtPtReeS2 GTPGA Buy For Yield $100.05 – Not Sold – $21.00 $9.60 100% 1.3 –69% –60% –60%

[ c ontinued on page 2 4 ]

The Intelligent Investor Performance Report 2008 Schedule of Performance Statistics as at 31 December 2008 23



Buy for yield [ c ontinued from page 23 ]


date Recommendation




232 10/09/07 timbercorpbonds TIMHB Buy For Yield $92.85 – Not Sold – $50.00 $13.385 0% 1.3 –32% –25% –25%232 10/09/07 timbercorpPref.Shares TIMPB Buy For Yield $2.05 – Not Sold – $0.47 $0.203 100% 1.3 –67% –57% –57%232 10/09/07 timbercorpconv.notes TIMG Buy For Yield $94.00 – Not Sold – $17.15 $15.06 0% 1.3 –66% –56% –56%232 10/09/07 WillmottPineS WFLPA Buy For Yield $96.00 – Not Sold – $69.00 $10.51 100% 1.3 –17% –13% –13%239 14/01/08 mortgagechoice MOC Buy For Yield $2.18 – Not Sold – $0.76 $0.14 100% 1.0 –59% N/A –59%243 4/03/08 gPtgroup GPT Buy For Yield $2.96 260 29/10/08 Sell $0.88 $0.114 0% 0.7 –66% N/A –66%246 10/04/08 envestra ENV Buy For Yield $0.76 263 16/12/08 Sell $0.33 $0.083 0% 0.7 –46% N/A –46%246 18/04/08 gtPtReeS3 GTPGB Buy For Yield $68.40 – Not Sold – $17.00 $3.90 0% 0.7 –69% N/A –69%250 11/06/08 deXuSRentS DXRPA Buy For Yield $89.95 – Not Sold – $61.00 $6.63 0% 0.6 –25% N/A –25%253 17/07/08 SevennetworktelYS3 SEVPC Buy For Yield $89.99 – Not Sold – $75.50 $3.657 100% 0.5 –12% N/A –12%254 5/08/08 FuturisHybrids FCLPA Buy For Yield $78.70 – Not Sold – $42.45 $3.442 100% 0.4 –42% N/A –42%254 1/08/08 goodmanPluS GMPPA Buy For Yield $76.20 – Not Sold – $46.50 $2.425 0% 0.4 –36% N/A –36%256 5/09/08 SantosFuelS STOPB Buy For Yield $95.90 – Not Sold – $97.00 $6.34 100% 0.3 8% N/A 8%258 2/10/08 taPStrust TTXPA Buy For Yield $82.65 – Not Sold – $80.10 $2.258 N/A 0.2 0% N/A 0%258 26/09/08 timbercorporchardtrust TODHA Buy For Yield $87.50 – Not Sold – $45.00 $2.19 0% 0.3 –46% N/A –46%260 22/10/08 SoutherncrossSkieS SAKHA Buy For Yield $73.30 – Not Sold – $70.00 $2.41 0% 0.2 –1% N/A –1%

numberofbuyforYieldrecommendations 51 averageannualisedReturn –6.3%

speculative Buy


date Recommendation




81 12/06/01 Pacificdunlop(ansell) PDP Speculative Buy $4.45 107 9/07/02 Sell/Take Part Profits $6.75 $0.00 N/A 1.1 52% 47% 47%82 26/06/01 australianmagnesium ANM Speculative Buy $2.20 85 7/08/01 Sell $1.49 $0.00 N/A 0.1 –32% N/A –32%83 10/07/01 axoninstruments AXN Speculative Buy $1.05 97 19/02/02 Sell $0.70 $0.00 N/A 0.6 –33% N/A –33%83 10/07/01 novusPetroleum NVS Speculative Buy $2.24 143 20/01/04 Sell $1.88 $0.00 N/A 2.5 –16% –7% –7%84 24/07/01 Securenet SNX Speculative Buy/Hold $1.27 133 5/08/03 Hold $1.57 $0.00 N/A 2.0 24% 11% 11%85 7/08/01 SmSmgmt&tech. SAS (SMX) Speculative Buy $2.70 157 3/08/04 Sell $2.10 $0.51 12% 3.0 –3% –1% –1%91 30/10/01 tapoil TAP Speculative Buy $1.29 182 16/08/05 Take Part Profits $3.18 $0.00 N/A 3.8 147% 27% 27%92 13/11/01 mYob MYO Speculative Buy $0.70 148 30/03/04 Sell $1.23 $0.033 100% 2.4 80% 28% 28%98 5/03/02 Forestenterprises FEA Speculative Buy $0.12 150 27/04/04 Sell $0.35 $0.00 N/A 2.1 192% 65% 65%98 5/03/02 mYob MYO Speculative Buy $0.65 148 30/03/04 Sell $1.23 $0.033 100% 2.1 94% 38% 38%



speculative Buy [ c ontinued from page 2 4 ]


date Recommendation




99 19/03/02 ticor TOR Speculative Buy $1.31 162 22/11/05 Accept Offer $1.88 $0.15 12% 3.7 55% 13% 13%100 2/04/02 brandrill BDL Speculative Buy $0.31 121 18/02/03 Sell/Switch $0.04 $0.00 N/A 0.9 –86% N/A –86%103 14/05/02 austarunitedcomms AUN Speculative Buy $0.215 105 11/06/02 Sell $0.24 $0.00 N/A 0.1 9% N/A 9%103 14/05/02 lihirgold LHG Speculative Buy $1.42 123 18/03/03 Sell $1.37 $0.00 N/A 0.8 –4% N/A –4%

104 28/05/02 auriongold AOR Hold for Upside/

$4.60 112 17/09/02 Sell/Switch $3.55 $0.07 100% 0.3 –21% N/A –21%

Speculative Buy104 28/05/02 biota BTA Speculative Buy $0.47 146 2/03/04 Sell $0.71 $0.00 N/A 1.8 51% 26% 26%105 11/06/02 nationalFoods NFD Speculative Buy $3.28 176 24/05/05 Accept Offer $6.40 $0.66 100% 3.0 115% 30% 30%105 11/06/02 Securenet SNX Speculative Buy $0.81 133 5/08/03 Hold $1.57 $0.00 N/A 1.2 94% 78% 78%106 25/06/02 oilSearch OSH Speculative Buy $0.81 153 8/06/04 Sell $1.21 $0.041 0% 2.0 54% 25% 25%108 23/07/02 ainsworthgametechnology AGI Speculative Buy $0.94 212 7/11/06 Sell $0.35 $0.00 N/A 4.3 –59% –19% –19%108 23/07/02 amcil AMH Speculative Buy $1.61 142 9/12/03 Sell $0.03 $1.85 N/A 1.4 17% 12% 12%113 1/10/02 mYob MYO Speculative Buy $0.67 148 30/03/04 Sell $1.23 $0.028 100% 1.5 88% 52% 52%

114 15/10/02 aust.magnesiumpartlypaid ANMCA

Speculative Buy $0.485 Not Sold – $0.018 $0.16 0% 6.2 –98% –47% –47%

(was also ANMN and is now ANM) 114 15/10/02 Peppercornmgmtgroup PMG Speculative Buy $1.00 116 12/11/02 Sell $1.78 $0.00 N/A 0.1 78% N/A 78%

117 26/11/02 mim MIM Hold for Upside/

$1.47 129 10/06/03 Hold $1.72 $0.013 25% 0.5 18% N/A 18%

Speculative Buy119 21/01/03 Securenet SNX Speculative Buy/Hold $1.03 133 5/08/03 Hold $1.57 $0.00 N/A 0.5 52% N/A 52%121 18/02/03 consolidatedminerals CSM Speculative Buy $0.62 140 11/11/03 Sell $1.05 $0.05 100% 0.7 77% N/A 77%125 14/04/03 Solution6 SOH Speculative Buy $0.425 141 25/11/03 Sell $0.64 $0.00 N/A 0.6 51% N/A 51%132 22/07/03 grandHotelgroup GHG Speculative Buy $0.495 161 28/09/04 Sell $0.73 $0.025 0% 1.2 53% 43% 43%137 30/09/03 centennialcoal CEY Speculative Buy $2.47 162 12/10/04 Take Part Profits $4.38 $0.13 0% 1.0 83% 79% 79%141 25/11/03 tapoil TAP Speculative Buy $1.49 182 16/08/05 Take Part Profits $3.18 $0.00 N/A 1.7 113% 55% 55%142 9/12/03 ainsworthgametech. AGI Speculative Buy $0.49 212 7/11/06 Sell $0.350 $0.00 N/A 2.9 –25% –9% –9%142 9/12/03 kaZgroup KAZ Speculative Buy $0.24 154 22/06/04 Sell $0.395 $0.003 100% 0.5 66% N/A 66%147 16/03/04 grandHotelgroup GHG Speculative Buy $0.54 161 28/09/04 Sell $0.73 $0.025 0% 0.5 40% N/A 40%150 27/04/04 mmccontrarianoptions MMAO Speculative Buy $0.032 174 26/04/05 Sell $0.004 $0.00 N/A 1.0 –88% N/A –88%150 27/04/04 Premiuminvestorsoptions PRVO Speculative Buy $0.011 166 7/12/04 Sell $0.001 $0.00 N/A 0.6 –91% N/A –91%150 27/04/04 Wilsoninvest.Fundoptions WILO Speculative Buy $0.022 165 23/11/04 Hold $- $0.00 N/A 0.6 –100% N/A –100%153 8/06/04 Sonnetcorporation SNN Speculative Buy $0.25 161 28/09/04 Sell $0.35 $0.015 0% 0.3 46% N/A 46%165 23/11/04 calliden CIX Speculative Buy $0.53 Not Sold – $0.40 $0.00 N/A 4.1 –25% –7% –7%172 29/03/05 croesusmining CRS Speculative Buy $0.46 248 12/05/08 Sell $0.03 $0.00 N/A 3.1 –95% –61% –61%173 12/04/05 calliden CIX Speculative Buy $0.51 Not Sold – $0.40 $0.00 N/A 3.7 –22% –6% –6%176 24/05/05 ainsworthgamecov.notes AGIG Speculative Buy $1.05 212 7/11/06 Sell $0.86 $0.159 0% 1.5 –3% –2% –2%

i M P o r ta n t i n F o r M at i o n

Disclaimer please note that past performance is not a reliable indicator of future results, so we can’t promise we’ll do as well in the future. Stocks can rise and fall and returns may be negative, as you can see from the tables. these performance figures are hypothetical and have been based on recommendations from The Intelligent Investor newsletter, using the prices as at date of publication. Brokerage will also be incurred on buying and selling, but these transaction costs have not been included. we believe investment is a long-term pursuit, as you can see from the holding periods, and we encourage you to think likewise.




speculative Buy [ c ontinued from page 25 ]


date Recommendation




176 24/05/05 miller’sRetail MRL Speculative Buy $0.685 196 28/03/06 Sell $1.70 $0.00 100% 0.8 148% N/A 148%181 2/08/05 cPigroup CPI Speculative Buy $0.50 215 16/01/07 Sell $0.450 $0.00 N/A 1.5 –10% –7% –7%186 11/10/05 betcorp BCL Speculative Buy $0.31 211 24/10/06 Sell/Ceasing Coverage $0.37 $0.00 N/A 1.0 –88% –87% –87%188 8/11/05 betcorp BCL Speculative Buy $0.34 211 24/10/06 Sell/Ceasing Coverage $0.37 $0.00 N/A 1.0 –89% N/A –89%189 22/11/05 charterPacific CHF Speculative Buy $0.44 Not Sold – $0.06 $0.05 0% 3.1 –75% –36% –36%189 22/11/05 globaltelevision GTV Speculative Buy $0.04 215 13/12/06 Accept Offer $1.03 $0.00 N/A 1.1 6% 5% 5%190 6/12/05 mcPherson’s MCP Speculative Buy $2.34 Not Sold – $0.50 $0.58 100% 3.1 –54% –22% –22%196 28/03/06 avJennings AVJ Speculative Buy $1.31 261 14/11/08 Sell $0.45 $0.10 100% 2.6 –58% –28% –28%197 11/04/06 challengerWinetrust CWT Speculative Buy $0.78 Not Sold – $0.30 $0.255 0% 2.7 –28% –12% –12%198 25/04/06 keycorp KYC Speculative Buy $0.94 216 30/01/07 Sell $0.755 $0.00 N/A 0.8 –20% N/A –20%201 6/06/06 betcorp BCL Speculative Buy $3.79 211 24/10/06 Sell/Ceasing Coverage $0.37 $0.00 N/A 0.4 –90% N/A –90%201 6/06/06 globeinternational GLB Speculative Buy $0.23 Not Sold – $0.16 $0.285 N/A 2.6 –80% –47% –47%215 16/01/07 globeinternational GLB Speculative Buy $0.24 Not Sold – $0.16 $0.285 N/A 2.0 –81% –58% –58%228 10/07/07 charterPacific CHF Speculative Buy $0.35 Not Sold – $0.06 $0.00 0% 1.5 –83% –69% –69%231 17/08/07 RamSHomeloansgroup RHG Speculative Buy $0.95 Not Sold – $0.13 $0.00 100% 1.4 –86% –77% –77%231 22/08/07 avJennings AVJ Speculative Buy $1.25 261 14/11/08 Sell $0.45 $0.05 100% 1.2 –60% –52% –52%232 10/09/07 challengerWinetrust CWT Speculative Buy $0.77 Not Sold – $0.30 $0.141 0% 1.3 –43% –35% –35%233 20/09/07 RamSHomeloansgroup RHG Speculative Buy $0.80 Not Sold – $0.13 $0.00 100% 1.3 –84% –76% –76%235 16/10/07 globeinternational GLB Speculative Buy $1.10 Not Sold – $0.16 $0.207 N/A 1.2 –67% –60% -60%243 7/03/08 RHggroup RHG Speculative Buy $0.14 Not Sold – $0.13 $0.00 100% 0.8 –7% N/A -7%252 9/07/08 bbiePS BEPPA Speculative Buy $0.67 Not Sold – $0.13 $0.043 0% 0.5 –75% N/A -75%259 10/10/08 aust.Worldwideexploration AWE Speculative Buy $1.93 Not Sold – $2.57 $0.10 100% 0.2 38% N/A 38%259 10/10/08 taPoil TAP Speculative Buy $0.59 Not Sold – $0.77 $0.00 N/A 0.2 30% N/A 30%261 13/11/08 timbercorpconv.notes TIMG Speculative Buy $41.00 Not Sold – $17.15 $0.00 0% 0.1 –58% N/A –58%261 13/11/08 timbercorpPref.Shares TIMPB Speculative Buy $1.00 Not Sold – $0.47 $0.00 100% 0.1 –53% N/A –53%numberofSpeculativebuyrecommendations 67 averageannualisedReturn –5.74%





suBscriBe


date Recommendation




132 22/07/03 Wilson Investment Fund WIL Subscribe $1.00 – Not Sold – $0.53 $0.22 100% 5.4 –26% –5% –5%136 16/09/03 Great Southern Plant. TREES GTPG Subscribe $100.00 155 6/07/04 Take Part Profits $158.00 $3.349 100% 0.8 61% N/A 61%160 14/09/04 Babcock & Brown BNB Subscribe $5.00 162 38272 Sell/Switch $7.85 $0.00 N/A 0.1 57% N/A 57%160 14/09/04 GTP TREES2 GTPGA Subscribe $100.00 – Not Sold – $21.00 $25.64 100% 4.3 –53% –16% –16%185 27/09/05 GTP TREES3 GTPGB Subscribe $100.00 – Not Sold – $17.00 $23.29 0% 3.3 –60% –24% –24%249 28/05/08 Suncorp Preference Shares SUNPB Subscribe $100.00 – Not Sold – $89.90 $3.849 100% 0.6 –6% N/A –6%250 10/06/08 Macquarie Conv. Pref. Shares MQCPA Subscribe $100.00 – Not Sold – $92.99 $5.38 0% 0.6 –2% N/A –2%137 30/09/03 Aust. Leisure & Hospitality ALH Subscribe/LTB $2.40 163 38286 Accept Offer $3.76 $0.083 100% 1.1 60% 55% 55%177 7/06/05 Tattersall’s TTS Subscribe/LTB $2.90 – Not Sold – $2.79 $0.583 100% 3.6 16% 4% 4%199 9/05/06 Wotif WTF Subscribe/LTB $2.00 – Not Sold – $3.68 $0.29 100% 2.6 99% 30% 30%211 24/10/06 Telstra 3 TLSCA Subscribe/LTB $3.60 – Not Sold – $3.83 $0.56 100% 2.2 22% 9% 9%222 20/04/07 Platinum Asset Mgmt PTM Subscribe/LTB $5.00 – Not Sold – $3.45 $0.24 100% 1.7 –26% –16% –16%numberofSubscriberecommendations 12 averageannualisedReturn 12.2%

accumulate


date Recommendation




80 29/5/01 Santos STO Accumulate $6.55 254 11/08/08 Sell $17.28 $2.63 100% 7.2 204% 17% 17%80 29/5/01 tapoil TAP Accumulate $1.24 182 16/8/05 Take Part Profits $3.18 $0.00 N/A 4.2 156% 25% 25%80 29/5/01 tollHoldings TOL Accumulate $4.32 91 30/10/01 Take Part Profit s $6.81 $0.045 100% 0.4 59% N/A 59%numberofaccumulaterecommendations 3 averageannualisedReturn 33.5%


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Warning this publication is general information only, which means it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether a particular recommendation is appropriate for your needs before acting on it, seeking advice from a financial adviser or stockbroker if necessary.

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