Why we’re cautious on these two sectors

Livewire Exclusive

Livewire Markets

Reputable lenders use a rigorous due diligence process to give them the best chance at consistently identifying any downside risk. Andrew Lockhart, Managing Partner at Metrics Credits Partners breaks it down into these key items; 

  1. Do customers value the service or product being delivered?
  2. Is the business model robust and sustainable?
  3. Does management’s strategy make sense?
  4. Can you determine a level of cash flows that are sustainable? 

When it comes to red flags, Lockhart says they tend to avoid companies that are operating in industries facing structural change. “A case in point is media or the retail sector. There’s uncertainty in terms of the business models in a lot of the entities and as a result, we tend to have a more cautious view around those sectors.”   


1 stock mentioned

1 contributor mentioned

Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

trending on livewire
Get the best of Livewire by signing up to our popular daily newsletter