A Telco charting its way through headwinds

Nathan Bell

If you think about what it takes for Telstra to put the cable work under the roads and under the footpaths, you have to basically shut down streets. It's very expensive and takes a lot of time. The benefit of the US, particularly providing fast internet broadband speeds, is that... Show More

A better bet than Telstra’s 5.5% dividend yield

Nathan Bell

Telstra’s share price has fallen 40% since it reached a high of $6.61 in February 2015, and the company is currently facing more pressure than ever. The company is forecasting a dividend of just 22 cents next year, down from 31 cents, for a 5.5% dividend yield. Show More

Buying Google at half-price

Nathan Bell

One way Nathan Bell and the team from Peters MacGregor find investment ideas is by looking at familiar sectors and identifying undervalued global analogues. In this short video with Livewire, Nathan describes a Google lookalike trading at less than half the valuation. Show More

A look at Metro Bank and the UK banking industry

Nathan Bell

Metro Bank is the new kid on a UK retail banking scene plagued with customers fed up by lousy treatment from the largely unchallenged oligopoly of Barclays, HSBC, Lloyds Bank and Royal Bank of Scotland. We take a look into why Metro is great and the industry it operates in. Show More

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Just 2 ASX stocks pass the Benjamin Graham filter

Nathan Bell

With valuations for high quality businesses currently near or at an extreme, we thought we’d run a screen based on Graham’s Stock Selection Criteria to see if it produced any overlooked, inexpensive stocks. Ben Graham is regarded as the father of value investing, having authored Security Analysis and its friendlier... Show More

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Where has the growth gone? You have to know where to look

Nathan Bell

Investors with a portfolio of top-20 Australian stocks have recently been asking where the growth has gone. Looking at global GDP figures you’d be forgiven for thinking that there isn’t any growth anywhere. At least not that’s available at an attractive price, given the current high valuations for stocks offering... Show More

Hi Patrick. In contrast to Alibaba, JD.com is known for selling authentic goods. I've noticed a number of Australian and US businesses favouring JD to protect the value of their brands. In short, the strategy definitely has merit, but Alibaba has been playing hard ball with sellers by insisting that they choose either Alibaba or JD, and Alibaba is still the big kahuna of the industry with the most customers. I don't expect that will change, but JD can certainly gain market share (in a growing market) as research has shown that wealthier Chinese prefer JD due to the authenticity of its products. It's hard to show off your wealth with counterfeits. Australian companies may also prefer targeting wealthier Chinese customers,, in addition to feeling their brands are being protected by a trusted retailer in JD. Cheers Patrick.

On JD.Com: Growth at all costs -

PS. There's a more detailed (but not too long) analysis on the company's current prospects in our March 2017 quarterly if you're interested: https://petersmacgregor.com/investments/peters-macgregor-global-fund/global-fund-report/

On How insider ownership can thrash the market -

Cheers David. It should say 'up to' 10% for the option. It's an amazing story. The shares are up nearly 4,000% over the past couple of decades. It shows the benefit of spotting these types of owners and businesses early and hanging on.

On How insider ownership can thrash the market -

Hi Mark. Whenever you perform a screen like this you need to double-check the numbers with the source documents (i.e. the company accounts). Without doing the requisite work I had assumed Crown popped up because it was flush with cash after the Macau assets were sold (again, I haven't checked this). Nonetheless, your conclusion is spot on. It's highly unlikely you'd find a well known, large-cap stock meeting Graham's criteria. That's probably been the case for decades outside periods of panic like the GFC for several reasons (including Graham's criteria simply being too restrictive in modern markets). You might find more examples amongst micro-caps, but they often have little liquidity and investing services and investors are also screening for these ideas, so it's competitive. Markets are far more efficient today compared to Graham's times, as software didn't exist to do the hard work for him. There were also far fewer investors and hedge funds around back then. Cheers Mark.

On Just 2 ASX stocks pass the Benjamin Graham filter -

Thanks for the feedback Patrick. From my limited experience driving supercars (i.e. zero), I tend to agree i.e. I don't think it will be a big issue. The company is confident that once they get someone into the new cars they won't notice too much difference, assuming there is one. If you've got your heart set on owning a Ferrari this issue isn't likely to change your mind once you've sat in the cockpit, and there are certainly pros to the turbos as well. From what I've read they still sound ok and they go faster, not a bad compromise. I look forward to having an opinion based on experience some day. Cheers Patrick.

On Ferrari – The race to separate is almost over -