Stocks We Like – IMF Bentham
Markets will typically pay a premium for a company depending on growth expectations, and then management is burdened with meeting these expectations, however rosy they may be. It’s rare then to find a company, which has attractive growth prospects, which are not being valued by the market. IMF Bentham (IMF) is one such company, which has laid the foundation for long-term growth, but the market seems focused on its short-term underperformance.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
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david klumpp
:
Interesting update today Ben, by the company on breakdown of its cases by region and looking ahead to 2018
https://content.markitcdn.com/research.commsec.com.au/Api/Document/B64ENCeyJkayI6IjE0MTAtMDE3Mzc0NDQtMDlSU0lBRUE2N0dLSDM4VTVBRUo3TDNTVTciLCJmaWQiOm51bGwsImR0IjpudWxsfQ==.pdf
I like the long-term prospects of this company; thanks for your regular updates on it’s prospects and risks.
George Lester
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“IMF Bentham is too small for a position in the Montgomery funds”
Is IMF that much smaller than Infomedia ?
Roger Montgomery
:
Whether we own it or not depends on the size of the fund at the time the purchase is contemplated. One might not have been too small then, yet a a larger company may be too small now.
Chris
:
How is this different to Slater & Gordon ? Looks like just another law firm to me.
Andrew
:
Hi Ben,
I am a investor in The Montgomery Fund. Given that you have taken the time to research the company, I don’t see why you wouldn’t take a position in the company, even if it would only account for a small part of your portfolio?
What size company do you currently consider too small for the funds regarding market cap and liquidity?
Cheers, Andrew
Roger Montgomery
:
Much of the work was already done Andrew when our funds were smaller (we previously owned it).
Gerard Hughes
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Skiddish about IMF. Currently hold stock in a loosing value position
Jarrod
:
Agreed. Topped up earlier in the year.
Tony
:
Personally I think it is difficult to calculate the intrinsic value of IMF as it’s hard to predict if the cases are winning ones or not. Especially it seems IMF is backing up the big cases which can provide big losses or wins, which makes me think it’s risky to hold IMF.