The list of problems facing Telstra is well known: falling revenues as the NBN rolls out, and declining market share in mobile. As the payments from the NBN begin to roll-off, some have questioned whether Telstra can even maintain its reduced dividend. But it’s precisely this negativity that caught the... Show More
Confession season was eerily quiet leading into reporting season, unlike the noise from the Royal Commission and the incredible events out of Canberra, where another Prime Minister didn’t reach their full term. The global equity backdrop was in a state of flux with the ongoing Trump-induced trade debate/war raging, mixed... Show More
It has long been difficult to place rationale around valuations in certain areas of the market. While the supermodels get all the spotlights, it’s the cardigan wearing brigade that seem more like a solid investment, allowing scope for many different futures — both good and not so good — without... Show More
TPG had been looking at a significant earnings cliff in an NBN world, with consensus EPS falling 30% in the next few years before we even consider large mobile losses. With the proposed merger with Vodafone, they fill the earnings hole by capturing an estimated $250million of synergies, which are... Show More
“Carnage” is a word that comes to mind when thinking about the Australian telecom industry at the moment. Shares of major telecom players are down anywhere between 50% – 70% over the last couple of years, mainly due to: Show More
Disruption. It's a word that we hear a lot of these days, but how many companies can claim to be truly innovative in their industry? Essentially what we're investing in is structural growth, focussing on innovations that benefit consumers, whether it be through a new, more innovative product, or a... Show More
Higher returns require higher risk and volatility… Or at least, that’s what finance theory would tell us. Is it possible to ‘have your cake and eat it too’? Callum Burns, Portfolio Manager of the SG Hiscock ICE Fund clearly thinks so, and he’s got the track record to back it... Show More
A 10-bagger is a stock that goes up 10-times in value. It is a concept made famous by Peter Lynch, the well-known fund manager from Fidelity. For most fund managers, picking a 10-bagger is often enough to make a career. I have some good news and some bad news for... Show More
The telco sector caused widespread pain in 2017 when it lost 23% to finish as the worst performing sector on the ASX. And not even 4 months into 2018, the sector is already down another 14%. You may well be asking: When will this end? In this special thematic episode... Show More
Performance is as much about avoiding the blow-ups, as it is about picking the winners. So for Livewire’s ‘Easter Eggs’, we outline three sectors to avoid completely, before then spotlighting two stocks we think stock-hunters should take a look at this Easter. Show More
The market sold off early on the back of the Tech led sell off in the States overnight that saw American indices down around ~1.5% thanks to reports of a data leak within Facebook (OMG!!) + there were a few other factors at play that we wrote about this morning,... Show More
The most important piece of information in this report is this: Telstra’s mobile business is under pressure. Postpaid ARPU (including mobile repayment options) decreased 3.6% due to higher data inclusions. This is the 5th consecutive half of postpaid ARPU decline with an acceleration in the rate of decline. Show More
Weakness in the commodity complex overnight weighed on the ASX today with the index finishing in the red for the 3rd straight day. Copper the main target overnight and that provided the topic for our AM report this morning. Last night’s fall in Copper was blamed mainly on a stronger... Show More
Big established companies are struggling to grow and the ASX20 has delivered miserly 5% annual return since 2012. For investors seeking some growth the challenge is to identify tomorrow’s leaders. In the final episode of Buy Hold Sell for 2017 we ask two fund managers that specialise in finding growth... Show More
Telstra has a strong position, with 50 per cent share of both fixed line and mobile markets. Importantly, it also has an even more dominant position in the very profitable corporate, government and enterprise service areas. The profits from these businesses, together with its strong balance sheet, position the company... Show More
Last week we saw BWX, BKL, A2M, WTC, NCK, NAN and BIN all up 7% or more. BAL is up 85% in three months, A2M is up 83%, WTC is up 55%, BWX is up 28%, BLA is up 46%. The mid-cap sector is having a dream rally. A lot... Show More
The NBN rollout continues to change the dynamics of Australia’s telecommunications industry, with slower revenue growth leading to increasing competition across the sector. And in an environment where even Telstra has recently reduced its dividend, is the Australian Telco sector still one worth investing in? Show More
Since 2002, Washington H. Soul Pattinson has delivered total shareholder return of ~490%. That’s more than double the All Ords Accumulation Index and this year marks the 17th straight year of increased dividends. The firm is known for taking a truly long-term view and making counter-cyclical investments. Show More
Buying unloved stocks is part of the DNA at Forager. Most of the funds’ excess returns over almost eight years have come from buying stocks that other investors hated at the time we acquired them. Think Service Stream in 2013 or Cardno in mid-2016. Show More
Amongst the raft of post result management meetings there is always much food for thought. In some cases, management teams convey thoughtful and coherent interpretations of the challenges and opportunities facing the business and their plans to deal with them. In others, the challenge of negotiating a shallow stream between... Show More