Equities
Reporting season is over and saw share prices of more than 40 stocks jump (or fall) by over 10% on the day of their results, with at least 10 moving by over 20%. The biggest gainer, Webjet, was up 30.6% on the day, a remarkable move for what was at... Show More
"We're focussed on valuing the business rather than just the stock. Underlying that is our estimate of private market value, which is what an informed, rational investor would pay for the entire company" ~John Rogers, investor, philanthropist and founder of Ariel Capital Management Show More
Spark Infrastructure (SKI) is a regulated utility company with a market capitalisation of $3.8 billion. Its current portfolio comprises interests in the following regulated assets: Show More
Whitehaven Coal (WHC) is an Australian coal production company that produces approximately 20 million tonnes per annum of high-energy thermal coal. This production compares to global coal consumption of approximately six billion tonnes. Thermal coal is used to run coal fired power stations. Show More
Investment Theme
Australian bond yields declined rapidly over the December quarter, anticipating a major slowdown in the Australian and global economy. Real estate has a correlation to bonds, a function of the leases it has in place with its tenants and generally performs well in weak equity markets. Show More
The current 25-year credit cycle has seen Australian household leverage rates move to record levels versus all other developed markets. This degree of leverage is unprecedented in Australian history and is often a precursor to a major housing correction. Show More
To meet the stated requirements of electric vehicle manufacturers, lithium production must grow from current levels of 300,000 tonnes to two million tonnes by 2030. Our analysis, supported by interviews with independent industry specialists, concludes the lithium price needs to stay in the $US10,000 to $US12,000 per tonne price range... Show More
We have argued the case for an exposure to the resources sector for over 12 months. Despite the excellent performance of the sector over this period, we continue to remain confident as our multi-pronged investment case remains intact. Show More
Collections
A significant amount of capital has flowed into concept stocks in recent months as hot themes caught the imagination of investors. This surge has pushed the smallcap index to almost 20 times 2018 earnings, with many stocks at a multiple of this. But high valuations mean high expectations, and given... Show More
Collections
Thematic investing takes advantage of correctly predicting future trends, and the significant capital flows they can subsequently generate. For example, if you correctly anticipated the coming growth in the electric vehicle market, you could have monetised long-term trends across the EV supply chain, including battery minerals. If you correctly identify the... Show More
Excellent piece Scott, thank you. It is a material mispricing and no doubt will correct once the market becomes more aware of the company and its excellent investment fundamentals.
I appreciate your response Ian, and a very fair point. Coal will eventually decline as a source of base power, but not for many years. Nuclear power would be a terrific transition. An honest question for you: How do you power your home and office, and how do you travel?
Thank you for the feedback. We have not done sufficient research on the graphite market to give you a considered opinion - apologies.
Terrific response Max and some great points raised. We will certainly review and revert.
Excellent question. You are correct that BLD has significant exposure to the Australian housing construction market, which we believe will experience a typical cyclical downturn. We believe that this downturn will be offset by BLD's exposure to the non residential construction market, which is experiencing strong growth. To answer your broader question, I am sure there are more pure exposures to the US housing construction market recovery, but we have confined out investment universe to those companies listed on the ASX.
An excellent note, thank you.
Thanks James, we are compiling a detailed report on the 'sector'. We look forward to sharing with you.
Thanks for the comments. Obviously I can only be general with such a short video. It was meant to be a word of caution, that's all. We have seen some very poor quality business models come to the market with very high valuations, not a good combination for investors.
Hi Patrick, different types of electricity generators run at different rates. Because mainstream renewable sources are variable (wind blowing, sun shining) - their actual output can range from 20-50% of installed capacity. Conversely, base load generators such as nuclear and thermal run close to 100%.
On Infigen (IFN) - an exciting pure play exposure to elevated renewable energy prices -