Schroders Australia

In its bid for Dulux this month, Nippon Paint offered yet another example of the ability for differing perspectives to provide divergent outcomes when it comes to the subtle art of company valuation. Dulux is an exceptionally well run company with powerful brands commanding a vastly disproportionate share of profitability... Show More

JCP  Investment Partners

The reporting season in Australia completed in February. Overall, reporting season exceeded low expectations, with consensus June 2019 forecasts being upgraded marginally (aggregate revisions to June 2019 profits were upgraded by 0.3%). Consensus bottom up eps growth forecasts for the June 2019 year now stand at 6.3%. This is dominated... Show More

Asset Allocation
Tim Johnston

Fourth quarter 2018 saw the market essentially pricing in a recession via a strong risk-off sell down; economically sensitive (cyclical and financial) stocks were hit hard. In the case of financials, there were additional concerns due to negative sentiment associated with the Financial Services Royal Commission. Not surprising, expectations from... Show More

Buy Hold Sell
Buy Hold Sell

There have been some astounding one-day moves this reporting season among the market darling midcaps, including Altium jumping 20%, Webjet soaring 30%, Blackmores plummeting 25%, and Bingo getting kneecapped by 49%. In this week's episode of Buy Hold Sell, we look past these wild moves to seek relative stability and resilience... Show More

Investment Theme
James Gerrish

Bang…some massive pent up buying / or short covering, probably both playing out in the banking space today as the market clearly voted with its feet, jumping boots and all back into the banks. Of the ~114pts added to the market today, ~67pts came from the banking complex. While the... Show More

Asset Allocation
Adrian Lemme

Australian house prices are falling. Credit availability is tightening. US mortgage rates are rising. These and other factors have put building materials stocks under pressure. In this paper we assess value across the building materials sector given our assessment of “mid-cycle” housing starts and take a view on where we... Show More

Patrick Hodgens

Costs are rising. Raw material inflation is coming through the supply-chain across industrial stocks. As a result, earnings pressures are emerging in many companies with exposure to raw materials. We have seen this in companies with exposure to oil (such as transportation, rubber or plastics) and pulp (i.e. Paper and... Show More