Alex Shevelev

The oil price has been on a rollercoaster for the past five years. From the depths of US$28 per barrel in early 2016 the price rose to US$85 per barrel last October. Things seemed to be going well for oil producers and service providers. But it was short lived. Oil... Show More

Alex Shevelev

For a while there Lovisa (LOV) was a bright spot in Australian retailing. A domestic success story conquering the world. But that was a few months ago. In October the company’s share price is down 26% after a poor sales update. Investors’ love affair with Lovisa seems to be falling... Show More

Alex Shevelev

Newspaper headlines like “House prices continue to tumble nationally” are now everywhere. While we have been worried about the potential for a housing correction for a long time, what was theoretical has become actual. Prices are down and it’s no longer the fringe doom-sayers that are predicting further falls. It... Show More

Join the conversation
Alex Shevelev

Earnings guidance slashed by 64%. CEO gone. The stock down 54%. That was the situation for iSelect (ISU) when we started buying the stock in April. And this isn’t their first time disappointing investors. That sounds horrible, so why does the Australian Fund now own 9% of the company? Show More

Alex Shevelev

Promises. We’ve heard our fair share from company management teams over the years. iSelect told investors that earnings before interest and tax would be $26m to $29m for the year. A little over two months later expectations were slashed by over 60%. How much weighting should management guidance be given... Show More

Alex Shevelev

The Australian Shares Fund used to hold parking services provider Smart Parking (SPZ). We invested via a $0.15 per share capital raising in February 2014. Since then the company’s UK parking lot management business has lurched from crisis to crisis and the sexy technology business remained loss making. It was... Show More

Hi Nick and Wayne - fair points. Just highlighting Wayne's good point on property costs. The $62m of extra land and buildings should (at say a 6% cap rate) be about $3m of pre tax net rent savings ($3.7m less an extra $0.7m of depreciation). After tax that is $2.1m, good for an extra 0.8% of net margin benefit through owning the property. Of course keeping in mind that it ties up capital. I'd still be on the side of the new store rollout being curtailed/cut if same store sales falter.

On Party coming to an end for Nick Scali -