Sam Dyson

Sam joined Vertium in 2017 as a Portfolio Manager / Equity Analyst. He has over 15 years’ investment management experience across Australian equities and Asian equity markets. At Vertium, Sam assists the CIO and is responsible for researching and...

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Caltex: Shrink to grow

Sam Dyson

Investors love companies that can deploy capital at high returns over a long period of time. However, great shareholder returns can also be achieved from companies that shrink their capital base. Take Caltex for example. Show More

ASX:CTX

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Just how did BHP get it so wrong?

Sam Dyson

Mining 101: a good mining company makes money at the low end of a steep cost-curve. This is BHP’s strategy and it is working wonders in iron ore. However, in 2011 BHP forgot this simple rule. Deal hungry and with cash flow burning a hole in the pocket after two... Show More

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It's a good point Russell. Caltex estimate a worst-case $150m impact, out of that $900m EBIT. There is some cost-out, possible only if Caltex lose the supply deal to Woolworths sites. Also BP's bid has been blocked, so a decent chunk of the Woolworths network could be sold to independent retailers who will need a supplier. Recent acquisitions will also add some growth.

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