Investing is a difficult exercise for investors, big and small. Below we explore a number of examples and ways to mitigate your investment risk thereby increasing your chances of success. Show More
Echo Resources (ASX:EAR) is a gold developer with its operations based in Western Australia. We believe that it provides the best exposure to ASX listed gold development plays, and is compelling value at the current market value of around $100 million. It is our opinion at the current gold price,... Show More
I explicitly began my investing education by reading what is considered the bible to value investors: Security Analysis by Benjamin Graham. To be honest, I couldn't and still haven't finished the book as I found it fairly dry and uninspiring; especially for a young, new investor. Thankfully, there are a... Show More
We have noted of late, increased commentary about particular ASX listed companies that are perceived to be expensive on traditional measures - without regard for their actual business models. In this wire, we specifically discuss companies using 'scalable business models', define what this term means, and outline two examples. Show More
We got lucky. A few days after our last wire, discussing two stocks to watch, one of them, Afterpay, released a positive business update and the share price exploded, gaining in excess of 30% within a matter of days. Reading market commentary, a common perception is that Afterpay is overvalued... Show More
With reporting season fast approaching we highlight two companies whose results we will be watching closely: Afterpay Touch and Mineral Resources. We outline what we will be looking for in their reports to see if their incredible performance can continue. Show More
As investors, we are all looking for an edge in earning outsized returns. Here I identify 3 simple portfolio management principles that are essential in any investor’s toolkit, and briefly outline how they can all be brought together into a simple cohesive strategy. Show More
As investors, we all look for opportunities where there is a clear, coherent and compelling rationale for investing. Ideally, the opportunity should possess strong growth characteristics, and limited downside should our thesis not eventuate after a period of time. We look at one such thematic, and three microcap exposures to... Show More
Hi Scott, You are spot on. One point I will add is that many people use their accountant as an informal advisor. Whilst for small matters it may be appropriate, for larger investments it's better not to be "penny wise, pound foolish"
Thanks for the comment Jack. Feel free to pass this article along to any professional advisors you may know. The better informed people are, the more beneficial it is to society as a whole. In terms of evaluating advisors, I refer you to point 2 (2nd opinions); and in particular to the part around transparent disclosure of incentives. In addition, I believe that independent advisors would have a broader range of investments to choose from. In my slim experience, most professional advisors do have genuine care and regard for their clients' financial well being however, human nature dictates that incentives can sometimes overcome this along with the occasional 'bad apple'.
Hi Michael, thanks for your comments. We are aware of the past ownership of the Bronzewing Hub by Great Central Mines. We note during the time of their ownership, that the gold price was very depressed relative to their production and sustaining capex costs. We feel Echo benefits substantially from the past capital expenditure contributed by the former owners of the Bronzewing Hub.
Hi Con, thank you for your comments. Accurate assessment of taxation is complex, especially within the resource space, and beyond the scope of this article. Our estimate is intended only to highlight that there is some inherent value in these tax losses should the project proceed to production.
Thanks for your comments Michael. It's our opinion that any potential acquisition of EAR would fit in with NST's strategic plan to consolidate the Yandal gold belt over time.
Nice read Matt. I would add an additional point: the 'false start' where a company may appear to be at or past the inflection point; but ultimately underperform. Example: SAAS themed, ASX listed companies in 2018
Hi Bart, there are soft copies floating around online. Google is your friend!
Hi Ben, Thank you for sharing your thoughts, our next post will be on the shortcomings of traditional valuation techniques and how an individual can potentially value growth companies.
Thanks for your comments Simon, we agree broadly with your sentiments. Interestingly, Berkshire have invested recently in an emerging market payment platform, so it appears that they're beginning to recognise the value of owning a scalable business.
Alex, Dean has picked this company superbly, with great foresight. Your comments do indicate the degree of ignorance of the company's business model held by the wider investing public; which ultimately will benefit those who do understand the nuances of their business model.
Nice write up Lawrence, well done
Well written Chris
Good article Jonathan, I would also add the potential impact of externalities in the 12 categories of debt above. For example, the potential of US student debt to become discharge-able in bankruptcy etc.
Great suggestions Rodney; they are all very relevant to the long-term success of a company. However, we believe that the location and specific attributes of a deposit are unique and hence the most important piece in the puzzle. Patient, long-term capital and competent managers will always be attracted to great deposits in good locations; whereas a sub-par deposit in a marginal location may only be economic during certain periods in the commodity cycle, making it a far riskier proposition.