Romano Sala Tenna

Romano Sala
Tenna

Portfolio Manager
Katana Asset Management

Katana Asset Management (AFSL Number 288412) was founded in September 2003 as a boutique investment management firm specialising in Australian Equities. In September 2005 Katana Capital Ltd, an ASX listed investment company (ASX code KAT), engaged the services of Katana Asset Management as the exclusive manager to it's Australian Equity portfolio. Katana Asset Management employs an all opportunity investment mandate being style, sector and market cap agnostic. At the core of the investment philosophy is a belief that flexibility must be maintained within the investment mandate in order to deliver consistent out performance to the index throughout different economic and market cycles. For this reason Katana Asset Management's investment approach could best be termed All Opportunity Benchmark Unaware. The firm does not employ leverage, securities lending or short selling within it's investment portfolio. In March 2011 Katana Asset Management launched the Katana Australian Equities Fund for Sophisticated and Institutional Investors.

Expertise

Will NAB repeat its March/April 6% gain this year?

Romano Sala Tenna

Historically, this time of the year is a terrific time to buy shares in NAB, Westpac and ANZ. None better to be exact. For nearly 2 decades, buying these 3 banks at the beginning of March and selling them at the end of April has been a winning trade. Show More

ASX:ANZ ASX:NAB ASX:WBC

Santos: The barrel is more full than empty

Romano Sala Tenna

Whilst abnormal losses flagged in the first half pulled the statutory profit into the red, Santos’s core Net profit after tax (NPAT) at US$336m was 5% ahead of our forecast of US$323m. It was also above January analyst consensus forecasts, but these were subsequently revised upwards to US$348m leading into... Show More

ASX:STO What the market missed

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Stairs Up ~ Elevator Down

Romano Sala Tenna

The well-worn saying that the markets take the stairs up and the elevator down applies to the current correction more than most. Whilst it doesn’t provide any specific consolation, it should remind investors that the current panic is not new and in fact it is the way that we expect... Show More

Don't Q for QBE

Romano Sala Tenna

It is rare that a company rallies 5% post announcing a forecast after tax loss of $1.2 billion. But perhaps when the bar is set as low as it was for QBE, this is a comparatively good outcome! Show More

qbe ASX QBE

How we are playing Santos  

Romano Sala Tenna

The chronology of events this past 24 hours is rather curious and provides somewhat of a conundrum as to how to play the current machinations. Santos has stated today that on the 14th of August the company received a confidential, non-binding, conditional and indicative proposal to acquire all the shares... Show More

m&a oil santos ASX:STO

A Strong Theme in the Early Stages

Romano Sala Tenna

As a professional investor, it may surprise some to hear that when it comes to investing, most of the time I lack clarity. Genuine, unequivocal, definitive clarity. Show More

lithium EV cobalt ELECTRIC VEHICLES

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Santos: The trend has turned

Romano Sala Tenna

In the true tradition of denial, we have maintained our position in Santos, and in fact, have added a modest amount over the past 12 months. Whilst it has been a particularly challenging period for both the company and investors, there are growing signs that the ship has been righted... Show More

ASX:STO

The single best result from August reporting

Romano Sala Tenna

We think the single best result from this reporting season was Australian Finance Group (AFG), which delivered a 33% increase in underlying NPAT and a 15% increase in dividend. Show More

ASX:AFG August 2017 Reporting Season

10 characteristics of an outstanding company

Romano Sala Tenna

Oscar Wilde once wrote: ‘Experience is simply the name we give our mistakes'. Based on that definition, I am a very ‘experienced’ investor. Over the past 22 years advising clients and the past 12 years managing money professionally, I have made all the usual mistakes and a few unusual ones... Show More

ASX:PNC educational

Is this the Next Credit Corp?

Romano Sala Tenna

Credit Corp listed in September 2000 at 50c per share. Based on the closing price of $17.62, this represents capital growth of 3,424%. Additionally, the company has paid $3.33 (660%) in fully franked dividends. Here’s our case for the company we consider most likely to be the ‘next Credit Corp’.... Show More

Credit Corp ASX:CCP Pioneer Credit ASX:PNC

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Biggest risk to banks is the housing cycle

Romano Sala Tenna

Perhaps the most important theme to emerge from recent bank reporting was that capital generation was stronger than anticipated as indicated by the CET1 ratios at, or around the ~10% level. This was predominantly due to a reduction in risk weighted assets. Why is this significant? Well in effect it... Show More

ASX:ANZ ASX:CBA ASX:NAB ASX:WBC

The Outlook for Global Growth

Romano Sala Tenna

We recently attended the well supported Capital Economics (CE) Conference on The Outlook for Global Growth. In total there were more than 90 slides and charts presented. At the risk of over-simplification, 6 key points stood out to us: Show More

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The Trump Effect: What Really Drives Markets?

Romano Sala Tenna

We often lose sight of what drives markets. It’s a question as complex as it is simple. We can become lost in information, research and opinions, but ultimately we need to re-centre on this critical question: what drives markets? Show More

markets us policy policy Longform Trump

Oil Discoveries at Lowest Level Since 1952

Romano Sala Tenna

With the attention continuing to focus on the day to day machinations of ROPEC (Russia-OPEC), there has been a lack of awareness as to some of the structural changes that are taking place in the underlying supply fundamentals. Show More

oil opec Longform

One midcap that passed our ten-point checklist

Romano Sala Tenna

The most effective way to generate new stock ideas is to be relentless. Relentless in talking with advisers and other investors, relentless in what you read, relentless in meeting with management, and relentless in developing sources for new ideas such as forums, conferences, newsletters, economic commentary, trade publications and quant... Show More

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Woodside the way to play OPEC Scepticism

Romano Sala Tenna

Earlier in the year we wrote that we expect OPEC to do a deal at some point, but that ‘these agreements always take longer than we expect.’ To be clear, we are not convinced that this is ‘the’ deal; from our perspective we were anticipating that OPEC members would need... Show More

oil woodside opec ASX:STO ASX:WPL Longform

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Risk is only one part of the equation

Romano Sala Tenna

Ordinarily, investors are quick to overlook risks in the pursuit of profit. For the past 18 months, the converse has been true in the banking sector. This may be about to change. During the past week, each of the major banks released a profit result or 3rd quarter update. The... Show More

ASX:ANZ ASX:CBA ASX:NAB ASX:WBC Longform big banks

Risk is Only One Part of the Equation

Romano Sala Tenna

Ordinarily, investors are quick to overlook risks in the pursuit of profit. Show More

Longform

Dealing with high priced stocks

Romano Sala Tenna

There is no such thing as a perfect stock, but there are stocks that are priced to perfection. Some examples in Australia include REA Group, Domino’s Pizza, Aconex, Bellamy’s, and Cochlear. All of these companies are trading on earnings valuations between 150% and 300% above the market average. And, give... Show More

ASX:COH ASX:DMP ASX:REA asx:bal ASX:ACX

The Oil Price is Biting

Romano Sala Tenna

Most of the current commentary in the oil market is focussing on the supply increases coming out of Saudi Arabia and the apparent ‘breakdown’ of OPEC. Show More

Longform oil pirce opec saudi arabia

We too are avoiding infrastructure plays at this point in the cycle. In our view, the 2 main drivers of infrastructure stocks are 1) comparative yields and 2) cost of their (substantial level of) debt. Both of these are transitioning from tailwinds to headwinds.

On My thoughts on the recent Wall Street correction -

Hello Johan, Yes AML has certainly cemented its position as the #1 cobalt related play. Exceptional drilling results in terms of grades, widths and consistency.

On A Strong Theme in the Early Stages -

Beware projects with eye-catching high grades but no width or tonnage. Most of our work on Canadian/North American cobalt plays has left us particularly unimpressed at intersections measuring 1-2 metres or less. This is not gold mining! AML pregnant with newsflow over next 3 months. CLA also moving up our list.

On A Strong Theme in the Early Stages -

AML is towards the very top of our shortlist and we are meeting with the company today to progress our research. Keen to hear what investors like and why?

On A Strong Theme in the Early Stages -

Fully concur Nigel; the 4 big banks represent nearly 1/3 of the ASX100 and a staggering 46% of the ASX20. That means that every ETF based on the ASX100 is pumping nearly 30c in every dollar into 4 banks, and worse for an ETF based on the ASX20. Investors are nervous about investing in the banks at this stage of the cycle, yet they willingly invest in some ETFs that are simply replicating this exposure.

On ETF's: The most crowded trade in history -

Atlas does indeed face greater challenges than FMG, the most pronounced of which is the mode of transportation and associated costs. At this stage its a watching brief.

On The Good, the Bad and the Worse -

Yes correct. Whilst 'anchoring' can be a dangerous psychological weakness, the whole thesis of this piece is that if it is the oil price that has driven the weakness, then when the oil price rebounds the weakness will abate. This is predicated upon the central tenet that it is the oil price that has driven the weakness in the STO share price - not anything related to the company itself.

On Oil Price Barreling Upwards (Part 2) : What We Are Buying -