Romano Sala Tenna

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...


A good company at a great price

Romano Sala Tenna

It’s not possible – or at a minimum exceptionally rare – to be able to buy a good company at a good price in a good market. Investors have to be prepared to sacrifice one of these ingredients. Our strong preference is to forgo the latter. In Australian Finance Group... Show More

ASX:AFG royal commission banking crisis

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In Focus: Katana Australian Equity Fund

Romano Sala Tenna

The Katana Australian Equity Fund (KAEF) is a long-only, actively managed investment fund that invests in a range of Australian listed companies. Since inception in December 2005, it has outperformed the All Ordinaries index by 163.7%, or 7.21%p.a. net of fees. Show More

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


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


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


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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


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


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


A good question and one that highlights a lot of the misconceptions around this company. Firstly its worth noting that despite fluctuations in housing prices, actual total credit growth has only been negative once in the past 2 decades. But even if credit growth was to turn negative There are at least (4) ways that AFG can continue to grow profits: 1. Increasing the share of their higher margin white label and even higher margin securitisation products 2. Push into SME lending where they have a fraction of the market compared to mortgages 3. Adviser growth ; since listing this has increased from 2200 to 2900; the BRC has added even further pressure on lenders (banks) to ensure that they have the highest level of compliance; banks prefer to deal with large aggregators such as AFG as they have the best internal controls; more advisers will be driven towards larger aggregators and AFG is the largest 4. AFG is actively working on FINTECH and as the largest player they have the largest IT budget; early days but they are not asleep.

On A good company at a great price -

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 -