Mid Year Investor Briefing
Thursday, July 18th, 2019 Clime recently concluded its Mid Year Investor Briefing roadshow in Brisbane on Tuesday June 25th. Over two weeks, we visited major cities across Australia to educate investors on major changes and events in global and domestic markets and discuss... 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
Letter To Investors: Is QE coming to Australia in 2020?
Friday, June 28th, 2019To develop a view on the outlook for investment markets over the coming year, we must commence by reviewing both the performance of major assets markets, and the driving forces creating headwind over the last 18 months. It has been... Continue reading
Afterpay in the headlines
Friday, June 28th, 2019Afterpay has captured a large number of headlines in recent weeks, first with a strong business update, followed by a capital raising to support the global expansion, then with an audit notice received from AUSTRAC, news of a Visa initiative... Continue reading
Trade War puts Huawei under fire
Thursday, June 20th, 2019In 2019 there are clear signs that global economic growth is moderating. Germany is leading weakness in Europe as industrial production and factory orders show declining activity, along with survey data that indicates a continued slowdown. The US economy is... Continue reading
Validating Macquarie’s investment quality
Thursday, June 20th, 2019After extensive work in recent weeks to validate the group’s investment quality, understand the reasons for the recent lower guidance and be confident enough the growth and returns upcycle will resume in FY20, we initiated a position in Macquarie Group... Continue reading
Company Update: Afterpay
Thursday, June 6th, 2019We recently revisited our Afterpay valuation to take account of the most recent data from web analytics. Web-derived data is incredibly useful for tracking up to date performance of online heavy businesses. The two charts below illustrate the number of... Continue reading
An update on banks
Wednesday, June 5th, 2019The four-year bank earnings downgrade cycle rumbled on after WBC’s interim result, with downgrades of up to 7% to the bank’s FY19 and FY20 earnings per share by broking analysts even though expectations were already low before the result. Analysts... Continue reading
Post-election wrap up
Friday, May 31st, 2019 Continue reading
Westpac of interest as sector fundamentals start to turn
Thursday, May 30th, 2019The four-year bank earnings downgrade cycle rumbled on after Westpac’s interim result, with downgrades of up to seven per cent to the bank’s fiscal 2019 and 2020 earnings per share by broking analysts even though expectations were already low before... Continue reading
APN Property Group’s growing dividend yield
Wednesday, May 29th, 2019Financial year 2019 marked the return of volatility. We saw turmoil in the December half, which eased into a relative calm in response to more accommodative monetary policy settings. In this environment business quality, or lack thereof, can be the... Continue reading
John Abernethy interviews… himself
Wednesday, May 22nd, 2019Walking to work is great and healthy for a 60-year-old. But it does mean that I spend my 20-minute trek talking to myself – inside my head. So, following the Federal election and a week where the US-China trade negotiation... Continue reading
ANZ’s dividend resilience in tough times for banks
Monday, May 20th, 2019Once again ANZ held its interim dividend steady at 80 cents, supplying another instalment in the franked income stream on which hundreds of thousands of SMSF investors rely. ANZ’s dividend has now been 80 cents for seven consecutive halves, admittedly... Continue reading
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
