Five Shares You Should

Invest In

William Ko

1. RIO TINTO LIMITED (RIO)

Rio Tinto is a mining company and one
of the largest in the ASX. It is an
international company mining
diamonds, metals and energy products
with its stability over long terms owing
to the consistent demands for
minerals. Recently, Rio Tinto has
announced its investment of US$833M
in the upgrade of its power and gas
network, as well as development in fuel
supply projects. The results from the
2011 Half Yearly Report are promising
with a 35% increase from 2010. This is
due to the ever increasing demands of
materials from Asia. Dividend yields
are average at approximately 1.3% but
this not expected to be a major part of
the net profit. These shares, however,
are expensive at around AUD72 per
share.

2. National Australia Bank (NAB)

NAB is one of the four major bank
branches in Australia covering a large
portion of financial services including
business banking, wealth
management, capital markets and
institutional banking. There have been
plans for NAB to acquire more than 600
Lloyd bank branches in the UK. This
vast expansion is likely to boost its
share price. As well as its predicted rise
in value, NAB also provides a
significant 6.6% in dividends annually.

3. Sigma Pharmaceuticals(SIP)
Sigma Pharmaceuticals is the
manufacturer as well as distributer of a
wide range of prescription and general
pharmaceutical products. After
devastating losses of $9.2M last year,
it has made a dramatic recovery with
its share value increasing by more than
double. Its half yearly report claims a
$26.7M profit and an increase of
EBIT(Earnings Before Interest and
Taxes) of 55%. Despite the sharp
recovery, this share is expected to rise
steadily over the next few years. The
shares are cheap at currently 60c each
and offer excellent dividends of 15c per
share (25%).

4. QR National (QRN)
QR National has become one of the top
stocks on the ASX since November
2010. It is a freight company for
industrial goods such as coal. The
steady rise in share prices is due to
increasing demands for mineral
exports. Recently, they took part in an
agreement of $900M to construct a rail
link to the Wiggins Island. This link is
expected to transport 27 million tonnes
of coal annually. Construction is due to
begin early 2012 and end in 2015 so
share prices are predicted to grow

throughout and after construction.

Dividends for this company are low but
the price is also cheap.
5. AGL Energy (AGK)
As the leading energy producer for
Australia, it is also one of the biggest
companies on the ASX. It is a large
supporter in renewable energy with a
diverse power supplier portfolio
including natural gas, wind, hydro, and
coal generators.

http://www.switzer.com.au/yourmoney/investment-advice/ten-sharetrading-tips-for-beginners/
http://www.australianstockreport.com.au/s
hare-tips/
http://www.riotinto.com/shareholders/1233
1_half_year_results_2011.asp