Monthly Archives: April 2012

  • In April 2012 where does Russell Muldoon see good Value.able investments? (Part 1)

    Roger Montgomery
    April 10, 2012

    Do Thorn Group (TGA), Maverick Drilling (MAD), Campbell Brothers (CPB) and Galaxy Resources (GXY) achieve Roger’s coveted A1 grade? Watch Part 1 of Sky Business’ Your Money Your Call 10 April 2012 program now to find.  Watch here.

    by Roger Montgomery Posted in Companies, Investing Education, TV Appearances.

  • Mining Services; a crowded trade?

    Roger Montgomery
    April 3, 2012

    We have been prattling on about the value in mining services businesses for a long time and I am sure you are familiar with names like Forge, Decmil and Maca. What concerns me a little is that these names are now familiar not only to the few that read this blog and keep up to date on my facebook page here: https://www.facebook.com/montgomeryroger but also to just about every broker with an analyst team.  There are now analysts solely dedicated to mining services and if the widely expected M&A/IPO wave hits later in the year, I wonder whether it won’t be full of mining services contractors.

    Make no mistake, on the one hand there appears to be some real value in this sector.  On the other, these businesses suffer from the ‘feast or famine’ syndrome, require a mining boom to be able to generate a sufficient rate of return to cover their cost of capital (and therefore increase there intrinsic value) and finally, their operating leverage ensures that any turn down in activity will have a significant impact on EBIT, EBITDA cash flow etc…

    One to keep a close eye on…

    I was interviewed on CNBC about this very subject and you can watch the video here.

    What do you think?  Do you own any of the mining services companies?  Can the high rates of return on equity be maintained?  What do you think Australia’s future looks like in the event the mining boom ends?

    Posted by Roger Montgomery, Value.able author, Skaffold Chairman and Fund Manager, 3 April 2012.

    by Roger Montgomery Posted in Value.able.

  • Can Apple’s share price continue to climb?

    Roger Montgomery
    April 3, 2012

    Roger Montgomery discusses with Ticky Fullerton on ABC1’s ‘The Business’ how the ever-increasing climb of Apple’s share price is likely to come under pressure.  Watch here.

    This edition of The Business was broadcast 4 April 2012.

    by Roger Montgomery Posted in Consumer discretionary, Energy / Resources, Intrinsic Value, Investing Education, TV Appearances.

  • Is there gold in ‘them-there hills’ for investors in Red5

    Roger Montgomery
    April 1, 2012

    Roger Montgomery discusses the prospects for Gold-Miner Red5 (RED) in this Money Magazine article published in April 2012.  Read here.

    by Roger Montgomery Posted in Energy / Resources, Investing Education, On the Internet, Value.able.

  • Why is the Value of a Property not necessarily what someone is prepared to pay?

    Roger Montgomery
    April 1, 2012

    In the April 2012 issue of BrokerNews.com.au‘s EMag, Greg Campbell of ARAP discusses property valuation issues, and how Roger Montgomery’s Value.able approach to assessing asset values highlights that what someone is prepared to pay can bear very little relation to the true worth of an asset.  Read here.

    by Roger Montgomery Posted in In the Press, Investing Education, Property.