At the current $2.06, Baby Bunting Group Limited (ASX:BBN) has a market capitalization of $260 million, and with net debt of $4 million it is selling on an enterprise value of 10.2X Fiscal 2019 forecast earnings before interest, tax, depreciation and amortization (EBITDA) of $26 million. Continue…

by David Buckland Posted in Companies.

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Recently the British members of parliament were debating Prime Minister Theresa May’s 585-page Brexit draft withdrawal agreement, only for May to postpone the culminating vote in fear of dismissal. Although it was approved at a special EU Brexit summit in Brussels last month, Shadow Brexit secretary Sir Keir Starmer had pressured the leadership, saying if the deal is rejected Labour will table a no-confidence motion in an attempt to force a general election. Continue…

by Lachlan Mackay Posted in Economics.

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Andrew Macken recently wrote about the disconnect (my words, not his) that he is seeing in the way the stock market is valuing Facebook, compared to a lot of stocks in the Australian domestic share market that are perceived to be high quality and high growth. Today I want to do something similar, and I want our readers to take part. Continue…

by Christopher Demasi Posted in Investing Education.

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You’ve probably read that many US tech stocks are trading on crazily high multiples. So it may surprise you to learn that Facebook (NASDAQ: FB) – the world’s largest social media platform – is trading on a lower multiple than many Australian businesses. Continue…

by Andrew Macken Posted in Companies, Stocks We Like.

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Many economists believe that consumer spending is the most important short-run determinant of economic performance. Which is a worry. Because it looks like discretionary spending is heading south.

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by Andreas Lundberg Posted in Consumer discretionary.

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Recently, Verizon Communications (NYSE: VZ) wrote-down the value of its AOL and Yahoo acquisitions by US$4.6 billion. While this is an enormous sum of money, it pales in comparison to the goodwill write-downs of some of history’s biggest acquisition failures. It is worth looking at what goodwill is and why it might pose an asymmetric downside risk to a portfolio position. Continue…

by George Hadjia Posted in Investing Education.

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The Federal Labor Party has stated it would change the dividend imputation system if returned to power in 2019.  This is expected to see a spike in the number of off-market share buy-backs.  The big question for investors is: should you participate? Continue…

by Joseph Kim Posted in Investing Education, Market commentary.

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The buzz word in the platform space this year has been managed accounts. Larger financial planning licensee and planner groups are now considering or in the process of setting up their own managed accounts. Some of the platform providers with leading technology benefiting from this trend have been ‘the independents’ such as Netwealth and HUB24, amongst a handful of other providers. Continue…

by Dean Curnow Posted in Investing Education.

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