I have noticed over the years (and now have the hard evidence) that how the majority of stocks move on day 1 of their results generally determines where it will be 4 months later. Show More
In early 2015, we launched the Regal Australian Small Companies Fund to profit from opportunities in small companies. Similar to our other products, the fund employs a long/short approach to increase the breadth of investment opportunities for enhanced potential to outperform. Since inception, the fund has delivered 34.4% p.a. (after... Show More
For decades, traditional wisdom held that value investing is the only way to outperform, and with good reason. Until the GFC, value had outperformed growth in all but a few brief periods, and those periods immediately preceded a major bear market. But for nearly a decade now, growth has produced... Show More
In this daily reporting season update, we provide first impressions on key takeouts from companies reporting today, including GMG Group and Link Administration with links through to more detailed reports. Show More
We looked at Facebook stock—far too briefly it turns out—in 2013 when it was trading below US$30 a share. It had listed a year earlier and was in the doldrums because of what the market perceived as a ‘painful’ transition from desktop to mobile. Painful? That transition turned out to... Show More
In the AFR today I reveal that luxury home values are tanking, particularly in ultra-high-end beach-side suburbs like Sydney's Palm Beach, and then unveil our new hedonic regression index for mortgage default rates---a global first---that shows that RMBS arrears are increasing sharply in contrast to what the likes of S&P... Show More
An impressive performance from the local market yesterday after some very poor leads from the previous day. The index rallied strongly from the early morning low of -47pts / -0.74% before the banks and some recovery from the hard hit resources saw the index close less than a point lower.... Show More
Until Seek came along, recruiting was pretty much about bunging an ad in Saturday’s classifieds and sifting candidates based on their ability to write a semi-coherent application. Show More
Compelling reading. The RBR Group in particular is an intriguing stock, given Africa's status as, the 'young continent', with a large and ever-growing population hungry to learn. That sa [...]
We provided some detailed thoughts on Telstra this time last year. Since then, Telstra has underperformed the broader market, the company’s strategy has dramatically pivoted from aspirations of becoming a global technology company to a cost-out and product simplification agenda, and Telstra has brought itself some breathing space and improved... Show More
Great analysis, thank you.
Dito, great work.
Awesome work!! kudos...
Results for some of the biggest stocks on the ASX have started to drop and a few have delivered above expectations. While the immediate pop on the day is like a sugar hit for investors, evidence shows this outperformance can extend for months to follow. Show More
In this daily reporting season update, we provide first impressions on key takeouts from companies reporting today, including QBE Insurance, Sonic Healthcare, Origin Energy, Telstra Corp, Treasury Wine Estates, ASX, Iluka Resources and Downer EDI with links through to more detailed reports. Show More
With the release of its full-year result for FY18, Downer has delivered on its earnings guidance for the seventh consecutive year. Its ability to do this in a volatile sector highlights the breadth of the business and strength of the Company’s management team. It also adds weight to the company’s... Show More
A group of factors that supported the equity bull market for almost a decade, including excess liquidity, low volatility, and low rates, are now unwinding in a synchronised fashion. Show More
What Beta/Long shorts funds or ETFs do you consider investment grade?
Despite political tension and underperformance of the European Financials sector in the June quarter, results in 2017 and the first quarter were solid. We saw upgrades for the European banking sector through 2017 on the back of improving loan losses and continued uptick in lending growth. The banks are also... Show More
A question I am being asked a lot at the moment is: Where are we in this most atypical of economic cycles? I tend to think we are in the late cycle of the economic recovery, as suggested by data points such as the Fidelity Leading Indicator. Valuations only tell... Show More
In this daily reporting season update, we provide first impressions on key takeouts from companies reporting today, including Insurance Australia Group, CSL, Woodside Petroleum, Computershare, Wesfarmers, Seek and Dexus Property Group with links through to more detailed reports. Show More
A quick recap of the last twelve months. In January this year we highlighted how the strong performance in the Small Caps sector had been led by a very narrow number of stocks over the preceding six months. We have seen a continuation of this trend over the second half... Show More
Given the underwhelming results from PACT and the 20% share price whack, will this lead to a review of ‘value’. IML also has this name, and those mentioned, in the QVE portfolio.
Appetite for alternative defensive allocations continues to grow as investors seek new ways to preserve capital and generate stable income. This is supported by a number of factors such as the current low interest rate environment resulting in low absolute yields, as well as recent increases in public market volatility.... Show More
If there’s one thing the market’s not short of, it’s noise. With newsreels looking for a quick sugar hit, it’s easy to get clouted in the latest headlines. For investors, this raises many questions. Is inflation coming back? Are bond yields going to take off on a tear? What will... Show More
We’re keeping a very close eye on electronics retailers like JB Hi-Fi (ASX:JBH). Not only are they exposed to any slowdown in the economy, but they are also exposed to changes in conditions for real estate & renovation demand (especially The Good Guys) as well as credit conditions. Show More