Optimistic optimism: strong returns to both Australian and global equities
This week’s Investment Matters will focus on different asset classes, their relative performance, and our broad thoughts on the implications of tactical asset allocation decisions.
When we survey benchmark performance, we see that Australian and Global equities portfolios have delivered returns well above expected long-term returns for those asset classes this financial year.
Revisiting takeovers
we’ve maintained higher weights in cash holdings within property sub-portfolios with an expectation that a significant rises in interest rates would necessitate an increase in cap rates (implied returns on property values), a resultant reduction in property book valuations and trigger a resultant slew of equity capital raises at discounted share prices in order to restore balance sheets to within bank funding covenants.
While the dull shine of copper comes in focus, we shed little light on BHP. Similarly, our focus this week on financial services dives deeper than the four major banks.
Profit Reporting Season – Stockland, Mirvac, Garda and Lendlease
we’ve maintained higher weights in cash holdings within property sub-portfolios with an expectation that a significant rises in interest rates would necessitate an increase in cap rates (implied returns on property values), a resultant reduction in property book valuations and trigger a resultant slew of equity capital raises at discounted share prices in order to restore balance sheets to within bank funding covenants.
While the dull shine of copper comes in focus, we shed little light on BHP. Similarly, our focus this week on financial services dives deeper than the four major banks.
Profit Reporting Season – Sandfire, Perpetual and Judo Bank
This week’s Investment Matters will continue to focus on the recent reporting season.
While the dull shine of copper comes in focus, we shed little light on BHP. Similarly, our focus this week on financial services dives deeper than the four major banks.
Profit Reporting Season – Cleanaway, Emeco, ParagonCare and Worley
This week’s Investment Matters will concentrate on key company results as the reporting season winds down. On balance, market strategists have noted that earnings revisions have been neutral across the board, which is better than historical outcomes of net negative earnings revisions by optimistic investment banking equity analysts.
Profit Reporting Season – Ventia, Johns Lyng, Earlypay and Nanosonics
Read key company results as the reporting season winds down. On balance, market strategists have noted that earnings revisions have been neutral across the board, which is a better than historic outcomes of net negative earnings revisions by optimistic investment banking equity analysts.
Profit Reporting Season – Week 2
This week’s Investment Matters will concentrate key company results as the reporting season ramps up.
Profit Reporting Season Update
This week’s Investment Matters will concentrate key company results as the reporting season ramps up.
Early profit reporting season and news update
In last week’s Investment Matters we concentrated on the confession season, the period in which companies make early announcements to the market surrounding material changes to upcoming earnings.
This week’s Investment Matters will also concentrate on news flow and early reporting season results.
Confessions of a corporate earnings season
Most ASX-listed companies in Australia have a June fiscal/financial year-end. Accordingly, those with June and December balance days will tend to present their (half-year/annual) financial results to the market in each of the months of February and August.
Judo Capital – back to the future of banking
As a raft of stocks in the portfolio have been taken over or have successfully met our internal price targets, we’ve been on the hunt for new names to replace.
Perpetual – finding a way to unlock value
In the past year, we have often commented that we’ll exhibit due patience as part of our investment approach. This is required as we often seek to invest in businesses that are significantly unloved and misunderstood and where assets may, therefore be mispriced.
Premier Investments – A deep dive into a new opportunity
In recent weeks, clients will have seen the addition of Premier Investments to their Australian equity sub-portfolios. Famously partly owned and operated (whether formally or informally) by Solomon Lew, Premier Investments is amongst the most successful discretionary retailers in Australian history.
Steadfast in its approach
The Markets This week: ASX v Wall Street FYTD: ASX v Wall Street Steadfast Group Limited is an Australian insurance broking network that provides insurance broking services to businesses and individuals across Australia and New Zealand. The company was founded in 1991 and has become one of Australia’s largest insurance networks, with over 3,500 brokers […]
Growing – in two very different ways
In recent weeks, we heard the mildly alarming statistics that the ASX had fallen to a low in October 2023 of 6703.2, lower than the levels seen in the broad market index at the close of October in 2007 (6770).
Falling share prices – An opportunity (not) to be wasted
This week we highlight a new addition to the portfolio.
Inghams: laying golden eggs
Inghams is the dominant supplier of chicken products in Australia. It is also amongst the largest positions in client portfolios. In the past week, it delivered an update on progress within the business across the first half of the fiscal year.
Lynas gets a rare (earth) licence reprieve in Malaysia
This week, we discuss developments in the critical minerals sector and take a look at Woolworths Q1 trading update and what it may reflect with respect to the Australian consumer.
When should we be worried about worrying? Consumer confidence.
This week we look at Consumer Confidence and Consumer Sentiment and hope to relate it to longer-term historical trends and current portfolio construction.
RBA Speaks – more nuance, slightly less ideology?
On Wednesday, RBA Assistant Governor Christopher Kent gave a speech to a Bloomberg gathering with a title that would surely only excite economists: “Channels of Transmission.”
Consolidation of Newcrest/Newmont – Do we continue to hold?
To provide a more complete investment picture, we will continue to provide some updates on the prospects of our sub-portfolios’ companies as gleaned from our coverage of the ASX Company Profit Reporting Season.
Company Profit Reporting Season – the final instalment
To provide a more complete investment picture, we will continue to provide some updates on the prospects of our sub-portfolios’ companies as gleaned from our coverage of the ASX Company Profit Reporting Season.
Understanding the rise in mergers and acquisitions
When the share-market does not see value or investment merit in a particular stock the stock’s share price will recede. This could be because the company’s earnings (i.e. profit) outlook is poor (e.g. Bega Cheese Ltd) or perhaps the industry in the which the company operates is struggling (e.g. ARN Media Limited).
But often someone or a company will see value where the share-market does not. The logical outcome of this is one of the more interesting aspects of investment: the merger or the acquisition. Or, in jargon: M&A.
CIO Update – The Market Who Cried Recession
Volatile times call for calm, considered action. But how does one stay calm when the market news suggests that everything is on fire? Context provides calm.
Wry & Dry #43: The Sky Is Falling…
Australia has arguably the world’s most diverse and abundant supply of energy, with the exception of Tsar Vlad’s empire. But somehow, this abundance has gone pear-shaped this week