The following article by John Abernethy featured in the August 2010 ASX Investor Update email newsletter. While market price earnings ratios are falling, some companies are seeing a lift in valuation. These are the ones that are generating high returns on equity, and have low debt. Such companies will shine if economic growth slows markedly [...]
The relative strength of the Australian economy and our much better economic outlook suggests that over time the $A will continue to rise against the $US. Those commentators who look at charts claim that the $A is in unchartered waters above US 90 cents. We are projecting the future and thus we are always in uncharted [...]
Hot on Woolworths
By Vincent Chin, investment analyst, Clime Asset Management. PORTFOLIO POINT: Investors prepared to look beyond the equity market for income should consider building a portfolio of hybrids. Suddenly, it seems shares are riskier than many investors might have ever imagined. Certainly there are real concerns that a ‘shares only’ portfolio is not sufficient in this [...]
The news that Westpac Banking Corporation (WBC) has substantially completed its wholesale funding task for the year to September had more market significant than the results of European bank “stress” tests and explains the strong rise in the WBC share price in recent days. Reports suggest that WBC raised its funds for a 5 year term at [...]
Another doyen of the share market fell from grace this week. QBE Limited flagged substantially lower earnings and blamed low prevailing interest rates in the US as the cause. Given that low interest rates have prevailed in the US for the last 2.5 years, it is strange that only now is it having an effect. [...]
Yesterday’s CPI reading for the June Quarter of 0.6% should not surprise anyone. Just this week, we have had pronouncements from Australia’s largest retailers – Woolworths, Coles and Harvey Norman – which focussed on the deflation in food and appliances. Indeed, the sales figures from the big food retailers are more than satisfactory given the [...]
An ASX announcement of excellent results for Clime Capital (CAM) was released this week. The key points are as follows (unaudited results): Operating profit before tax in the financial year 2009/10 of approx $13 million; Net investment performance for the year to June 30 of 22.8%, which represents an outperformance of 9% to the All [...]
The following article written by Alan Kohler that appeared in the Eureka Express is a great overview of changes to LICs. We like this article, because he talks about companies like Clime Capital and why they are now more attractive to investors. In recent years LICs have been licked. But with new rules and an [...]
John Abernethy explains the importance of yields in his investment strategy, comments on the market and talks about the Headline group’s plans for Mothercare in Australia. With Oriel Morrison. John Abernethy explains why chasing the best yield is important in his investment strategy, with CNBC’s Oriel Morrison.
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