Investment Theme
Marcus Bogdan

For the best part of two decades, Australian banks enjoyed a golden period of share market outperformance. The banking sector was able to deploy significant capital at very attractive rates of return. It has only been since 2015 that the banks have underperformed the ASX 200 on a consistent basis. Show More

Marcus Bogdan

The ASX 200 index recently corrected over 10% from its year high on the 29th August. Investors can take advantage of this volatility to add to companies that remain well positioned in their perspective industries and are supported by robust balance sheets. Cognisant that volatility could remain elevated, it is... Show More

Marcus Bogdan

During the FY18 company reporting season, we attended investor briefings and held one-on-one meetings with senior management and industry participants that provided an invaluable source of detailed knowledge. Here are our ten key take-outs. Show More

Marcus Bogdan

We have changed our view on a number of stocks on the back of the recent results season. Here we summarise our views on 5 stocks we like today, namely Woolworths Group, Cooper Energy, Senex Energy, Caltex Australia and News Corporation. Show More

Marcus Bogdan

News Corp, the global diversified media and digital real estate services company, today reported financial results for the fourth quarter and fiscal year ended 30 June 2018. We've pulled out the key highlights here, and share our view of the stock. Show More

Marcus Bogdan

Markets have for some time been buoyant on a combination of benign economic conditions, corporate earnings growth and the presumption that Central Banks remain supportive. However, investors should remain alert to the prospect of more hazardous conditions emerging this financial year, and here we outline three stocks that would be... Show More

Marcus Bogdan

Public infrastructure spending in Australia has a positive outlook for the medium-long term, with government announcements and global trends indicating that large public infrastructure companies will have a multitude of projects in the pipeline. Two of these beneficiaries are ASX-listed companies Boral (BLD) and Adelaide Brighton Cement (ABC). Show More

Undoubtedly, there are a number significant headwinds which the banks need to navigate through, including recommendations that will emanate from the Financial Services Royal Commission coupled with the prospect of greater government intervention (if the ALP is elected in the Federal election). How much of this is factored already into banks share prices is difficult to determine. A further consideration is the the potential change in the composition of bank share ownership (which is dominated by retail investors) who have been beneficiaries of fully franked dividends. If franking changes are implemented by a new ALP government the mix of share ownership may shift toward greater ownership by local and foreign institutions.

On Bank valuations look interesting -

There may well be a perennial discount attached to the Murdoch dynasty and its voting structure. Nevertheless, on a broader level there remains appealing elements in family backed companies with net cash balance sheets. Rupert Murdoch has undoubtedly shown extraordinary longevity in his passion for publishing and his tenacity to nurture assets through difficult times. NWS’s stable of assets in its News and Publishing business is testament of the advantages of taking a longer term approach. Too often, the dispersed shareholding model naturally aligns itself to short term performance indicators. The idiosyncratic nature of Murdoch’s jurisdictional preference for a US holding company is well celebrated and admittedly does dilute the value of Australian franking credits. Yet, my sense of having visited News Corp’s Head Office in New York and also its London office is that proximity to vibrant and large competitive markets does bring advantages.

On News Corp: Approaching an inflection point -