NAB’s dividend cut derisks the stock
Friday, May 17th, 2019Although the 16% cut to NAB’s interim dividend, down to 83 cents per share, reduces shareholders’ income now, shareholders should more than benefit from a higher share price because the cut derisks the stock by increasing the bank’s capital buffers.... Continue reading
Frankly annoying
Friday, May 17th, 2019In this View, I am taking the liberty of expressing my personal frustration at the current franking debate. In particular, I am expressing my frustration with the prosecution by the ALP of its proposed policy to abruptly change taxation rules... Continue reading
Macquarie should trade at a premium to the market, not in line
Wednesday, May 8th, 2019Following on from our recent company update on Sonic Healthcare, another high-quality stock on our watchlist for the next market correction is Macquarie Group. Trading on just 15 times 2020 consensus earnings now, the stock is already interesting when the... Continue reading
The market’s rally explained by charts
Wednesday, May 8th, 2019The surge in equity markets in 2019 is caused by many macro factors acting in unison. In no particular order, we observe across the world readings of low inflation, low but steady growth, supportive economic policy settings, low interest rate... Continue reading
Company Update: Credit Corp
Thursday, May 2nd, 2019Credit Corp is currently undertaking a share purchase plan (SPP), which was announced on 1 April 2019 together with a $125 million placement. The SPP is priced at the lower of $20.45 and a 2.5% discount to the volume weighted... Continue reading
Australia has a lot going for it – but not during an election
Thursday, May 2nd, 2019Over the coming weeks, the strengths of the Australian economy will rarely be acknowledged by either side of politics in their quest to hold or take government. Once again, the Australian election campaign will be dominated by negativity on both... Continue reading
Sonic past the worst of overseas funding cuts
Thursday, May 2nd, 2019One way to take the stress out of investing is to keep a watchlist of quality companies built using a robust methodology, then wait for a temporary disappointment or market correction to price. Preferring companies that have proven their competitive... Continue reading
Doing the same thing over and over again
Thursday, April 11th, 2019Someone (maybe it was Albert Einstein) once opined that: “Insanity Is Doing the Same Thing Over and Over Again and Expecting Different Results” Albert Einstein It is our view that the maintenance of negative rates of interest across both Europe... Continue reading
Brambles is back as a quality investment – here’s why
Thursday, April 4th, 2019Backing ASX large-cap turnarounds remains one of the most reliable investment strategies on the ASX and the latest example is Brambles, which is back to what it used to be and should have remained: a) an instigator and beneficiary of... Continue reading
Company Update: 1300 Smiles
Thursday, April 4th, 2019Leading ASX-listed dental services company 1300 Smiles (ASX: ONT) looks well positioned to drive growth in a tough market, having recently announced a material acquisition in South East Queensland. ONT owns and operates full-service dental and orthodontic facilities across New... Continue reading
On the couch with the Budget
Thursday, April 4th, 2019The minority of Australian TV viewers that chose the Budget Address rather than tuning in to Married at First Sight were still entertained by coverage that combined poor quality acting with choreographed hugs. Whether this is a government that has decided to leave is... Continue reading
Mid-cap holdings review
Thursday, March 28th, 2019 OWNERSHIP DISCLOSURES: Clime Group owns shares in WEB, GUD and HUB.... Continue reading
Company Update: Audinate
Thursday, March 28th, 2019Audinate (AD8) is an emerging technology leader at a positive inflexion in its trajectory, one we see as a candidate for inclusion in the ASX Model Portfolio. AD8 develops and markets digital audio networking technology. Its flagship product set, Dante,... Continue reading
Fed puts rates on hold
Thursday, March 28th, 2019The US Federal Reserve acknowledges slowing economy and no rate rises for 2019 In a highly significant development for global markets, at the end of a two-day meeting in Washington, the US Federal Reserve decided unanimously to keep the target... Continue reading
Webjet a star result
Thursday, March 21st, 2019Webjet was one of the standout results of reporting season. The share price had come under significant pressure in the 4th quarter of 2018 because of concerns around the consumer environment in Australia and weaker travel activity in Europe. For those... Continue reading
Is Woolies an opportunity?
Thursday, March 21st, 2019Woolworths’ interim result last month disappointed and the shares fell briefly before rebounding to where they were before the result: around $30. Does this mean there is nothing to worry about after all and the stock is a buy? Not... Continue reading
Silent achiever: APN Property Group
Thursday, March 21st, 2019Markets and associated sentiment can be fickle. At times, companies can go about their business building value without necessarily being rewarded by the market. Small cap property focused asset manager, APN Property Group (ASX: APD), would fall into this bucket.... Continue reading
Stock in the Spotlight: Macquarie Telecom
Friday, March 15th, 2019Macquarie Telecom (ASX:MAQ) recently delivered a solid 1H19 result headlined by EBITDA of $25.5m for the half, up 14% and in line with expectations. Management provided first-time FY19 guidance of $51-$53m, implying growth of 10% for the fiscal year. The... Continue reading
Company Update: Orora
Friday, March 15th, 2019Since demerging from Amcor at the end of 2013, Orora (ORA) has delivered five years of consistent earnings and dividends per share growth. Dividends per share have increased from 3.0c in February 2014 to 6.5c in February 2019. This is... Continue reading
John Abernethy’s breakdown of the Berkshire Hathaway letter
Friday, March 15th, 2019In prior years, when we have reviewed Warren Buffett’s annual letter to shareholders, we have noted the unique structure of Berkshire Hathaway (“Berkshire”) and stressed its importance in facilitating the self-funding of its growth. Berkshire is akin to a “mutual”... Continue reading
