Glennon Capital

Glennon Capital was founded in 2008 by Michael Glennon. Previously, Michael worked with some of the best institutional small company fund managers in Australia. In 2007, he received the IMCA Money Management Fund Manager of the Year (Small Cap)...

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7 Things To Look For In A Cash Flow Statement

Glennon Capital

Over the past few weeks we have written about the profit and loss statement and the balance sheet, and how understanding both is critical to working out how a business operates. But as the saying goes, cash is king, and the cash flow statement is really at the core of... Show More

7 Things To Look For On A Balance Sheet

Glennon Capital

While the profit and loss statement is doubtless very important for investors, the balance sheet should not be underestimated; it may even be more important. Below we run through the top points to consider when coming face-to-face with a balance sheet. Show More

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3 Top Signs Of A Quality Business

Glennon Capital

Many investors talk about quality businesses and many, like us, seek to buy these businesses for our clients. But what exactly is quality, what are the signs to look for, and why is it so important? Show More

3 Stocks That Stood Out The First Week Of May

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Compounding – The Eighth Wonder of the World

Glennon Capital

Albert Einstein famously stated: “Compound interest is the eighth wonder of the world. He who understands it, earns it… he who doesn’t, pays it.” We tend to agree – compounding returns over time can lead to some great results. So how does this play out in the world of small... Show More

The Growing Country

Glennon Capital

We know Australia is the lucky country – whether that be the weather, the lifestyle, or the 25 plus year streak without a recession. We are also the growing country; Australia’s growth rate of 1.5% outpaces many of our peers. But where is the growth coming from and what is... Show More

Technology And Retail: The Menulog Bump

Glennon Capital

A couple of days ago the Australian Bureau of Statistics released the latest retail sales figures, touching on many of the retail segments services by the ASX listed retailers. Overall sales increased 3.1% for January and 3.4% for the year, and continued to reduce from the strong 6% growth rates... Show More

Child Care: the mosaic of price, policy and margins

Glennon Capital

A young family has many points of financial stress to contend with at the moment. The record prices of property in Australia’s major cities make buying a property a difficult exercise. Rents have also continued to rise. Meanwhile a second issue is also consistently present for those with young children:... Show More

Reporting Season Highlights - Imdex, Lovisa, Isentia

Glennon Capital

Last week marked the busiest week of the current reporting season. With most of the smaller companies reporting there was no shortage of stocks to profile. We take a look at three of these businesses, how they have fared during the reporting period and what this means for the businesses... Show More

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The Changing Advertising Landscape

Glennon Capital

During this week’s results presentation WPP Group (WPP, the old STW Communications) reported on the state of the advertising market for the past year as well as expectations over the next few years. Coming from a significant media buying group it made for interesting reading. Show More

Small caps and growing businesses

Glennon Capital

There can be a wide range of factors that will lead to some form of growth for a small company and a little bit of analysis can identify many ways that a company can grow. Show More

Why there are more opportunities in small caps

Glennon Capital

Small caps are often thought of as the poor cousin to blue chips. Investors first flock to the well recognised top 20 index stocks. Then, when time and risk appetite allow, they may on occasion dabble in smaller stocks. Not surprisingly, investors who limit themselves largely to the top 20... Show More

Investing in small caps with barriers to entry

Glennon Capital

A small cap company operating in an industry with barriers to entry will have the advantage of reduced competitive tension. This provides increased confidence that the business can achieve its goals. Show More

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A wave of lithium supply is coming

Glennon Capital

Lithium is the talk of the town; prices are up 50% from the start of last year. Listed lithium stocks are surging and more and more small explorers are getting in on the action. Electric cars are all over the media. But this is not a one way bet. A... Show More

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Investing in small cap businesses with quality management

Glennon Capital

Quality management is critical to a business. Management should have a track record of success and skin in the game. Show More

Investing in sustainable small cap businesses

Glennon Capital

A sustainable business is one of the key aspects we look for when investing in small caps Show More

Why we don’t buy stocks purely on yield

Glennon Capital

Cash rates are at all time lows and predicted to move lower, while the yield on Australian 10 year government bonds hit an all time low of 2.2% this month. Australian savers, both within the superannuation system and outside it, are now faced with the tough task of building their... Show More

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The growth trap

Glennon Capital

In the same way that value traps should be considered before investing in value stocks the growth trap, which often gets less attention, should be considered when investing in growth stocks. An investor might come across a company that is selling into a large, growing market, with what appears to... Show More

What we look for in small cap companies

Glennon Capital

We share some of the key aspects we look for in small cap companies: superior management; growth prospects; sustainable businesses; in industries with barriers to entry; and of course undervalued Show More

Good value or a good value trap?

Glennon Capital

Sometimes an investor might come across a stock that on face value appears to be very cheap. Headline price/earnings multiples may be unreasonably low, the business might be producing strong cash flow or the net tangible assets of the business may be way above the current price. All the above... Show More

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