Investment Theme
It looks clear that 2019 will be a challenging year for the consumer. The daily headlines on falling house prices, declining car sales, tightening credit, election uncertainty and regulatory changes are having a reinforcing loop. As always, but particularly in such an environment, we’ve looked to tilt the portfolio away... Show More
CEO’s and business leaders' comments can provide valuable insights and provide a greater understanding of the current investment environment and key trends that may be emerging. Below are 22 quotes from the week which in our view detail some of the most important and prominent industry trends and economic factors... Show More
Buy Hold Sell
In this week’s episode of Buy Hold Sell, Ben Clark from TMS Capital and Alex Leyland from Leyland Private Asset Management share their view on three stocks that surprised to the upside this reporting season. Key Points Janus Henderson is trading at about 14x earnings while growing at around 5%. This compares... Show More
Local market had a relief rally as the “War of Tweets” between US and North Korea started to settle down. The weaker than expected US inflation outlook pushed down USD and pushed up AUDUSD. China data showed that we may be closer to the top in the recent commodity run... Show More
The media market is rapidly evolving, as traditional media makes way for new digital formats. Unfortunately, industry regulation is slow to catch up, with outdated ownership laws that predate the advent of the internet. The ACCC's raised concerns of the proposed merger between APN Outdoor and oOh! Media sets a... Show More
Our small cap investment process involves building our own cash flow based valuation models and ranking stocks on a balance of growth, operating margin and capital required. We are very careful to account for the amount of cash required for fixed assets, working capital and intangibles. This process often keeps... Show More
This week two of our significant investments announced a merger of equals and both announced earnings upgrades. It was a nice Xmas present for UBS Small caps. To recap. We are long term believers in the outdoor media space for a variety of reasons. I outline the key reasons below.... Show More
Market moved up again on global positive sentiment ahead of the US Fed update to be only 40 points off the 2016 high…but on accumulation (i.e. dividends included) basis we are at all-time highs (i.e. created a new high today). The positive performers today were led by Discretionary retail and... Show More
Following reporting season, a number of previously well-loved sectors have fallen out of favour with the market. Outdoor advertising, aged care operators, and telecommunications companies have all seen falls of around 30%. Despite the well-established difficulties of operating in the aged care sector, investors got “over-excited” about this area and... Show More
Chris Stott, Chief Investment Officer at Wilson Asset Management, thinks the Australian market is fairly priced at its current PE of around 15-16 times - slightly above the long-term average. With rate hikes due in the US opening the possibility of a short-term correction, plus the expectation of further rate... Show More