Wry & Dry #16 FY-24: Trumpster: diary. Anti-Semitism mask. Albo’s straining belt buckle.
Saturday: Florida. Played golf with some champion golfers. An Irish fella called McIlroy, a chick from South Korea, Jin Young Ko and a bloke named Tiger something. I WON!
Sunday: New Hampshire. Spoke at a rally. Told them “I don’t mind being Nelson Mandela.” I am willing to GO TO JAIL to defend democracy. Mandela was a patriot, like me. India should be proud of him.
Monday…
Wry & Dry #6 FY-24. CBA profiteering? Protected species. Israel: ignorance aplenty.
Who did the CBA’s CEO think he was fooling when he said that the bank’s massive profit will “fortify the balance sheet to support struggling borrowers” Good grief, does anyone think that the CBA is going to forgive the debt of a defaulting borrower?
Company Profit ‘Reporting Season’
The first substantive week of company reporting season kicked off last week. We provide some of the more relevant company result takeaways.
Company Profit ‘Reporting Season’ preview
It’s an intense time of year for equity market professionals. But one that is welcomed because of the opportunity to review financial data, hear about company strategy, assess management and operational performance, and to review one’s own stock selection and analytical prowess.
Lull before company profit reporting season
Late July is when there is a lull in company news, as industrial companies are in communication lockdown before company profit reporting in August. Mining companies are busy releasing production reports and not much else, also ahead of profit reporting.
Out with the old, in with the new
There has been a significant period of de-equitisation in the Australian equity markets in the past couple of years. Our portfolios, and performance, have been the beneficiaries of this phenomenon. Several stocks we own are subject to takeover bids:
Selectivity and Productivity
This week we discuss two major topics. Japan and why we are more heavily invested than global benchmarks and Productivity: why is this a problem for Australia and how does it impact returns?
Going, Going, Gone – the de-equitization of the Australian Equities Market
Two of our investments, Costa Group and United Malt, received confirmation relating to takeover bids this week.
Both takeovers provided support for our investment strategy. This strategy concentrates on finding opportunities where the market fails to price either the long-run asset or the franchise-based value of a company, and instead focuses on short-term earnings fluctuations. In such cases it is often an external party, via a takeover, that unlocks the value.
EOFY, Inflation and Small Caps
The curtain is about to fall on another financial year. FY-23 has been a year of very good investment performance across First Samuel various portfolio strategies.
Clients should expect their Flash Performance reports within 10 days, always noting that all portfolios are individually managed, with different asset mixes and security selections.
A deep dive and a frustrating ACCC rejection
This week, we have decided to present a (a) deep-dive on a company we have held for several years and (b) a comment on failed takeover.
The Health of Australia’s Employment Market
This week’s Investment Matters strikes out on a different path to usual. We will present a range of background information on the changing nature of the labour force following a decade of rapid aging and massive inbound migration.
Jittery consumer meets unrepentant RBA
This week’s Investment Matters continues our examination of the RBA’s tightening cycle and the increasing fragility amongst cohorts of Australian consumers. Have the screws been tightened too far already?
What Alternative assets do investors have?
This week we spend some time discussing a small but important component of most clients’ portfolios, Alternative Assets. We’re in the process of making new venture capital-style investments in health and financial services.
We also discuss another new Australian Equity portfolio holding called Impedimed (IPD ASX).
Some interesting introductions
We’re always looking for new ideas to introduce into the investment portfolios. A spate of recent takeovers within the portfolio (think Newcrest, Origin, United Malt, Pushpay, Eildon Capital) has accelerated the need for fresh ideas to replenish building cash positions.
Banks and Budgets
A busy week in financial markets given the conclusion of the Australian Bank 1H23 profit reporting cycle and the announcement of the Federal Budget. Our discussion will focus on each in turn.
Conferencing
This week the Australian investment world was dominated by one event – the Macquarie Equites Conference in Sydney. We will provide a quick run through of major themes and highlights from companies to which our clients have exposure.
Sayonara
This week in Investment Matters, we have three sections that provide important updates on clients positions in Eildon Capital, Reliance Worldwide and Mineral Resources.
Over the course of the later part of this week and next many companies will provide updates to the market, including mining companies, smaller companies and those presenting at upcoming investor conferences. We will cover as many as possible of these updates in coming weeks.
O the economic front we discuss the impacts of the review into the RBA that goes beyond the changes mentioned in the headlines.
Battery Powered Portfolios
This week in Investment Matters, we have two news items relevant for client portfolios and a piece designed to assist with understanding how an investment in the portfolio has been restructured
Gold and price of money
This week in Investment Matters we have two items relevant for client portfolios. The first is the revised takeover conditions for Newcrest Mining and the 2nd is the pause in rate hikes announced by the Reserve Bank last week. Again, this week we have the much-needed assistance of Patrick Cooks’ cartoons.
Cheers
This week in Investment Matters we have highlighted three news items relevant for client portfolios. Similar to the previous week, is the enhancement of these stories with the sensational Patrick Cook cartoons.
A little more for the collection
This week in Investment Matters we have highlighted three news items relevant for client portfolios. The highlight of the week however is the enhancement of rather plain text with the sensational Patrick Cook cartoons.
Debanking Some Fears in Global Markets
This week Investment Matters covers off on the collapse of the Silicon Valley Bank (SVB) in the US.
We used equity market weakness, associated with fears of contagion in the financial system given the collapse of Silicon Valley Bank (SVB) (and to a lesser extent smaller crypto-focused Signature Bank) in the US, to add to positions in the Australian Bank sector this week.
GDP, the RBA decision and some leftovers from reporting season
With reporting season now behind us, Investment Matters returns to cover off on three companies in slightly more detail than would have been possible in recent weeks:
Ventia Services
TPG Telecom
Garda Property Group
The end of company profit reporting season
The final week of reporting season is traditionally occupied by some of the smaller companies with less well-developed internal reporting structures and possibly some news they are reticent to share!
The week also saw the much-awaited update from EarlyPay which is discussed.
Busy week of company news
The third week of company profit reporting season is traditionally the busiest with a range of large companies presenting updates to the market. We have provided some detail on those results important to client portfolios in today’s Company News section.
Busy week of company news, and RBA Governor Lowe commentary
This week saw the first concentrated week of half-yearly results from the largest of the ASX-listed companies. Commonwealth Bank, Wesfarmers, Origin Energy and Seven Group, amongst others in client portfolios, updated the market.
Another takeover bid
Client portfolios benefited this week from another takeover bid this time for Newcrest Mining. A non-binding indicative offer came from another giant global gold miner, Newmont Mining, based in Denver USA.
Strong start to 2023 – The January Effect
In the first of Investment Matters for 2023 we will concentrate on the large volume of news and information regarding portfolio positions.
RBA meeting and the inflation, employment and debt dilemma.
The final Investment Matters of 2022 is a weighty one. First Samuel’s CIO, Craig Shepherd, puts together the critical pieces in the mosaic of interest rates. It is worth the patience needed.
2022: What Mattered?
A cursory glance at the scorecard would lead you to believe this year in markets could be met with a yawn. Yet those that lived through it know that 2022 was anything but a “yawn”.
Synthesis from the state of Black Swans and Kangaroo Paws
Following a commitment made last week, I have returned to pen the second in a series on my recent visit to Perth. Most importantly, after almost a decade of stagnation, Australia is once again seeing explosive growth in mining investment.
How the sausage is made
In this week’s Investment Matters, CIO Craig Shepherd provides some insight into the way in which the investment community organises in-person meetings and company access, and how First Samuel makes use of its scale to access the best of such opportunities.