RBA Govenor Philip Lowe's speech sends AUD into a tailspin; Australia's biggest private land developer says defaults on house and land packages in Melbourne are at 25%; and the Chinese economy is being pulled in two conflicting directions, so just how bad is the slowdown? Here's what's happening in markets... Show More
It’s been a while since I bought a stock trading on a PE multiple of 3x. There was one in 2012. Another in 2015. Both were, with a bit of luck, multi-baggers. Show More
In this report from Malcolm Palmer, Managing Partner of Joseph Palmer and Sons, he reviews the financial year gone, and looks to the year ahead, including how and when the post-GFC multi-trillion dollar stimulus process ends, and what it means for markets... Show More
Local market closed slightly lower as resources weighed on the market struggling with low sentiment. Market was dragged into the negative territory by Miners, Property Trusts and TLS. US Fed speeches later this week…including one from Yellen…will be looked upon to set the tone for global markets…but likely to deliver... Show More
Local market recovered some losses from morning selloff despite US presidential speech delivering very little detail to the slogans. Resources and Consumer Discretionary drove the market down while Utilities and Financials delivered some support. New month and more question than answers on US fiscal outlook. The speech that was supposed... Show More
Local market ran into more profit taking ahead of the State of Union address by the US president and the US GDP update on the last day of the month as well as the last substantial reporting season date. Miners and ET related selling in Gold equities drove the market... Show More
Spotless Group Holdings (SPO): Reported net loss $358m- includes $391.1m of exceptional items (after tax) primarily relating to the contract portfolio restructure | Contract renewal rates improved to continue to hold at 95% by number and 72% by annual value. New contract wins also increased during the period to... Show More
Divisional result: Facility Services (92% of SPO revenue): EBITDA up 12.7% to $293m. Margins fell 60bps to 9.6% due to the 5% margin on acquired businesses vs the steady 10.7% on existing business; Laundries (~8% of SPO revenue): EBITDA down 17.2% to $71.4 . Margins fell 680 bps to 24.2%... Show More
The ASX200 has recovered +5% since the recent low on the 12th of February. While the reviews coming out of reporting season are mixed there have been a handful of stocks that investors have cheered on a rampaging rally. In this episode of Buy Hold Sell we look at 5... Show More
Sam Ferraro from independent research firm Evidente has developed a model for identifying stocks that provide a high degree of earnings certainty. He believes that against a backdrop of ultra low interest rates and low growth it will be companies that offer investors a high level of confidence around their... Show More
The Daily AGM Note has details of the first strike against the remuneration report at Globe International, a close result at Entek Energy Limited (and a prudent decision by the Board to withdraw four other remuneration resolutions from the AGM agenda). https://subscriber.theexecutiveremunerationreporter.com.au/archives/12794 Show More
In this video Rhett Kessler, Senior Fund Manager at Pengana describes what it’s like to be managing funds in the middle of a correction. The well renowned fund manager reveals that despite the mass discomfort he bought four stocks during the recent market rout – Duet (ASX:DUE), Tatts (ASX:TTS), Spotless... Show More
Goldman Sachs says a combination of yield + growth (industrial yield) has significantly outperformed a pure high yield strategy in the past 15 years. We ask three fund managers what’s one stock in your universe that best fits the bill of yield + growth and why will it continue to... Show More
We believe that Spotless Group Holdings is well placed to deliver investors a combination of growth and yield given their exposure to the growing demand for outsourcing. Spotless is the leading provider of outsourced facilities services and laundry and linen services with revenues 1.2x higher than its closest peer. Their... Show More
When asked about how he handled the recent correction, Rhett Kessler, Senior Fund Manager at Pengana says “It’s quite easy to stay in cash and say ‘we’re disciplined we don’t buy things that are expensive.’ The real challenge is when things flip around and the outlook’s awful, yet that awfulness... Show More
SPO reported $950m per annum worth of contract renewals and $350m pa in new contracts which is approximately 46% of its current annual revenue. Their facility services EBITDA was up 30.1% to $233m and EBITDA margin 9.2%. Laundries EBITDA up 14% to $83.4m and EBITDA margin 30%. As previously known,... Show More
In this episode of Buy Hold Sell we look at some of the bigger IPOs for 2014. After a good early run Medibank shares have been steadily easing, is there value now on offer? Spotless Group has already had one incarnation as a listed company, will the spruced up vehicle... Show More
Spotless is a leading provider of integrated facility services in Australia and New Zealand. Spotless has dominant market industry positions, good revenue visibility driven by long term contracts of 5-10 years and very low customer concentration with no single client representing more than 5% of turnover. We are attracted to... Show More
A key highlight during the quarter was the opportunity to travel to the UK and France. The purpose of our trip was principally to glean greater insight into the five industry themes of Energy, Health care, Resources, REITS and Supermarkets. This included a two-day briefing by Ramsay Health Care (ASX:RHC),... Show More