downgrades

Following the big falls in share price for some of the high-priced growth stocks he identified on Livewire in February 2016 https://www.livewiremarkets.com/wires/30501 we caught up with Jeremy Bendeich, Chief Investment Officer at Avoca Investment Management, to find out if they were looking more attractive. “We think that some of those... Show More

Andrew Mitchell

While equity markets globally have mostly celebrated the Trump rally, investors within Australian smaller and mid-cap growth companies have not felt so enthused. Continued fund flow rotation back towards larger cap Financials and Resources coupled with a weaker end to the AGM season has seen some fairly dramatic downgrades and... Show More

Scottish Pacific is the largest independent factoring company on the ASX, explains Romano Sala Tenna, Portfolio Manager at Katana Asset Management. Factoring is a type of debtor finance, where the company buys accounts receivables from a third party at a discount to face value. After hitting a high of $4.01... Show More

Few feelings are worse for an investor than seeing a holding sink on the back of an unexpected profit downgrade. As holders of Surfstich (down ~72% YTD) or Murray Goulburn (down ~60% YTD) are no doubt aware, these downgrades can be devastating to performance. Common wisdom holds that avoiding the... Show More

Chris Prunty

In the stock market, as in life, good news (upgrades) travels fast while bad news tends to become evident slowly. Employees, management, and boards all want to see their companies do well, and they tend to be true believers about their companies future. This optimism can make boards and management... Show More

Tim Kelley

There are two kinds of downgrade: There are those that occur because the company was an accident waiting to happen, and those that occur when good companies encounter bad luck. The second kind is difficult to avoid but happily is uncommon. The first kind is easier to avoid. Accidents waiting... Show More

There are always downgrades occurring for a range of structural or cyclical reasons. Woolworths is an example of a shift in industry structure with the entry of a new competitor in Aldi with a strong business model. Looking for shifts in industry structure, regulation or the cyclical operating environment helps... Show More