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
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
