Brick and mortar retail is in structural decline. Online retail is the way of the future. Such axioms have guided the investments of both retailing businesses and investors in recent years. Unfortunately for investors, these established propositions were sorely tested yesterday when ASOS, a UK-listed pureplay online apparel retailer, crashed 40 per cent after releasing an unexpectedly negative trading update. Continue…

by Daniel Wu Posted in Consumer discretionary.

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Following up from our prior blog, here is the second set of key biases that the team at Montgomery remains self-aware of as investors. To recap, human beings have evolved acute survival instincts over thousands of years of evolution, however our logical reasoning instincts remain quite primitive for the sophisticated world we navigate today. Continue…

by Amit Nath Posted in Investing Education.

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As we head towards the end of the year we often become more reflective. One of the conversations that recently has been cropping up with people I meet annually before Christmas is the various limitations of capitalism. And as I think about these conversations I have realised that time plays an important part in the power to respond in a way that has positive outcomes. Continue…

by Roger Montgomery Posted in Economics.

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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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