COMPUTERSHARE (CPU) Shares

ABOUT COMPUTERSHARE

Computershare Limited is an Australian based stock transfer company that provides corporate trust, stock transfer and employee share plan services across various countries. The company has a history dating back to 1978, when it was first founded in Melbourne.

The company began to expand its portfolio with the purchase of the Royal Bank of Scotland’s registrar department in 1997.

Following this, it diversified internationally with business operations in Ireland, South Africa and Hong Kong. In 2004, the company acquired the stock transfer sectors of Harris Bank and Montreal Trust, as well as German company Pepper Technologies AG.

Today the company has offices in the UK, Ireland, the US, Canada, the Channel Islands, South Africa, Hong Kong, New Zealand, Germany and Denmark.

OVERVIEW OF COMPUTERSHARE

• Computershare Limited employs 12 000 people servicing 16 000 clients in 21 countries. The company’s strategy is to be the leading provider of services in its selected markets by leveraging its core skills and competencies to deliver outstanding client outcomes from engaged staff.

• The company focuses on new products and services to reinforce its leadership in established markets, and invests in technology and innovation to deliver growth, productivity gains and improved cost outcomes. The company is driving growth in its US mortgage services business by building scale and revenues across the mortgage value chain.

• In the company’s other growth engine, Employee Share Plans, the recent Equatex acquisition enhances its scale, capabilities and earnings to pave the way for integration to a single market-leading technology. Computershare’s strong balance sheet, with the leverage ratio below the mid-point of the target range, supports its ongoing capital management strategy.

• The company announced AUUS Dollar 200 million on market share buy-back to complement dividend payments, and will continue to maximize franking available to shareholders.

VISION & VALUES OF COMPUTERSHARE

• Globally, Computershare Limited is dedicated to supporting initiatives that help alleviate poverty through its community giving scheme, Change a Life.

• This program has a focus on sustainability by investing 80% of donations in global projects that provide long-term solutions for the communities which its employees vote to support.

• The remaining 20% of donations go to local projects via established charities, chosen by employees in each locality. The company then matches all employee payroll donations.

MARKET PERFORMANCE OF COMPUTERSHARE

• Computershare Limited trades on the Australian Securities Exchange (ASX), where investors can buy shares under the stock symbol –CPU.

• Data from the company’s 2019 financial analysis shows a Management EPS increase of 12.8%, an EBITDA increase of 10.2% and return on equity exceeding 26%. The company benefited from higher interest rates which helped margin income increase by 40% to over US Dollar 250 million. This enhanced the company’s results and contributed to funding higher returns for shareholders.

• The company announced final dividends of AU 23 cents (up 9.5%), bringing the total dividend for the year to AU 44 cents, an increase of 10% year on year. The company is also carrying out a US Dollar 200 million on-market share buy-back to efficiently distribute capital to shareholders.

• The company’s impressive performance has delivered a flourishing share price for investors with solid long-term growth in dividends, securing a solid buy-in for investors who choose to purchase shares today.

Buy COMPUTERSHARE stocks / shares – A Step by Step Guide how to Buy / Purchase COMPUTERSHARE Stocks or Shares online.

Before buying any stock or share one has to consider a few factors.

STEP 1: PROPER RESEARCH IS ESSENTIAL

Upon deciding you want to buy COMPUTERSHARE Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.

Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.

STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN COMPUTERSHARE STOCKS / SHARES

It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a US Dollar 5 stock, multiply 100 by US Dollar 5 to get US Dollar 500.

STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE

Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.

STEP 4: OPEN A BROKERAGE ACCOUNT

A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.

STEP 5: COMMIT AND PURCHASE COMPUTERSHARE STOCKS / SHARES

Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out.  Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of COMPUTERSHARE stocks / shares.

5 Questions to ask yourself before purchasing any stocks or shares.

1. Is it the best time to buy this stock / share?
2. Should I buy COMPUTERSHARE stocks / shares in the current economic climate?
3. Can I afford to buy this stock / share?
4. What is the forecast of the stock / share growth?
5. What is the current price per earning ration on the stock / share?