Small cap reporting recap
Thursday, September 5th, 2019The Clime Small Cap Sub-Portfolio results were more or less consistent with our forecasts with no big surprises. Nevertheless the market reacted very strongly in some cases. We will provide updates for each holding in coming weeks. But we’ll start with... Continue reading
Comfortable and Relaxed – Not
Thursday, September 5th, 2019Do you sometimes get the feeling that life’s certainties, the things we usually take for granted, are actually quite uncertain? That the activities we all do daily, like breathing clean air, or perhaps walking to your office in the city,... Continue reading
Company Update: Lovisa
Tuesday, September 3rd, 2019Lovisa is a highly profitable and well-managed business with a global store rollout which is fully funded by free cash flow. The business currently has net cash and generates an ROE of 75%, gross margin of 80% and EBIT margin... Continue reading
Trade surplus – But who cares?
Friday, August 30th, 2019Australia is lucky that President Trump does not rule the world, for he would claim that our massive FY19 trade surplus would need to be curtailed. The trade surplus is mainly generated with China through our massive commodity and energy... Continue reading
Market Wrap: In the thick of reporting
Friday, August 30th, 2019Company reporting has been coming in thick and fast this past fortnight for the Clime Analysts. We managed to pry them away from the phones and screens to bring you this brief update on recently reported companies – Seek, Audinate,... Continue reading
Ramsay delivering healthy income
Wednesday, August 28th, 2019The significant compression of already historically low interest rates across many developed markets, including Australia, has left many investors scrambling for access to lower risk sources of sustainable income. This further enhances the relative attractiveness of good quality, higher-yielding opportunities... Continue reading
Company Update: IMF Bentham
Thursday, August 22nd, 2019Australian global litigation funder IMF Bentham (ASX:IMF) was a recent Small Cap addition to the ASX Model Portfolio. Clime last held IMF over 2016 and 2017, and we believe now is a good time to hold again. IMF is a... Continue reading
Bonds in a bind
Tuesday, August 20th, 2019Over recent weeks the trade war ebbed and flowed, Hong Kong erupted in more protests, both the UK and Germany teetered on recession, New Zealand’s central bank stunned markets by dropping its benchmark rate by 50 basis points , Thailand... Continue reading
Market Wrap: Reporting season kicks off
Thursday, August 15th, 2019The August Reporting Season had barely begun before the Trump Administration escalated its trade war with China, announcing new tariffs on Chinese imports. This is now dominating the Reporting Season with very heavy falls on the ASX. In this week’s... Continue reading
Company Update: Wellcom
Wednesday, August 14th, 2019Creative production and marketing services company Wellcom (ASX:WLL) kicked off the August reporting season with a gift for shareholders, announcing on 31 July that it had entered into a Scheme Implementation Agreement under which it will be acquired by Korean... Continue reading
Refreshing your investment shortlist
Thursday, August 8th, 2019In recent weeks, the Clime Investment Management team has focused on updating our shortlists of potential investments. This is an integral part of the Clime investment process and a useful discipline for all investors. Key benefits of this process include:... Continue reading
New CEO adds to NAB’s recovery trend
Thursday, August 8th, 2019NAB shares are at 11-month highs after the appointment of Ross McEwan as CEO to start by April 2020. Formerly head of Commonwealth Bank’s retail bank, Ross left Australia to become CEO of Royal Bank of Scotland after missing out... Continue reading
Dancing near the edge
Thursday, August 1st, 2019US economic expansion becomes longest in history. This bull market has been built on low rates. Is time up? The US economy is enjoying its longest uninterrupted stretch of expansion since the 1850s, despite the eurozone crisis, slowdown in China,... Continue reading
Is Coles a long-term yield play?
Wednesday, July 31st, 2019The investment quality and portfolio role of the market’s newest large-cap stock became clearer recently. Coles Group, which demerged from Wesfarmers and listed on the ASX in November last year, recently held its inaugural strategy day. Coles committed to a... Continue reading
A new model position – Woodside Petroleum
Thursday, July 25th, 2019Recently, we initiated a position in Woodside Petroleum (WPL) within the Clime Direct Model Portfolio. We managed to acquire a share in the business below our FY19 equity multiple valuation – this value can vary quite widely with the USD/AUD... Continue reading
How is HUB24 placed for the low cash rate environment?
Thursday, July 25th, 2019After reaching a high of $15.55 in May, the HUB share price has since fallen 24% to the price at the time of publishing of $11.80. This is now the sixth time that the HUB share price has fallen below... Continue reading
Mid Year Investor Briefing
Thursday, July 18th, 2019 Clime recently wrapped up the Mid Year Investor Briefings which were conducted over two weeks in all major cities across Australia. These events are a fantastic opportunity to meet our investors and provide insights into major changes and events... Continue reading
Hansen acquisition could boost share value
Thursday, July 4th, 2019In early June, Hansen Technologies (ASX:HSN) completed an A$166m acquisition of Canada-based Sigma Systems. This was HSN’s largest acquisition to date, funded via a new A$225m facility. We initially included HSN in the Clime Direct Model Portfolio because it was... Continue reading
Growing the MQG position
Wednesday, July 3rd, 2019On 14 June we added to our newly initiated Macquarie Group position in the Clime Direct Model Portfolio. In our last report, we explained the investment quality we see in MQG. Today we summarise our thesis below. In summary, the... Continue reading
China-US trade negotiations roll on
Tuesday, July 2nd, 2019At this point, markets seem relatively relaxed as they regard it as quite likely that US-China trade talks will get back on track, whilst doubting that a deal can, in fact, be struck before the end of the year. This... Continue reading
