ValueLine: Asciano’s lesson
Asiano’s $1.1 billion writedown should have investors looking hard at other stocks, particularly where goodwill dominates balance sheets. Read Roger’s article at www.eurekareport.com.au.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
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.
Andrew Schealler
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At the end of the day all that really counts is cash; we invest cash as investors/business owners and expect to receive cash in return. I hold GXL as well but the high level of goodwill doesn’t concern me as the business generates excellent levels of free cash flow per share at current prices, has experienced, capable owner managers and a defensive business model with far better than average growth prospects.. Real value is generated by free cash flow and its intelligent redeployment – I think GXL has the ability and intention to do just this.
admin
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Hi Andrew,
Thanks for the insight. I suspect a whole bunch of readers, will be running off to have a look right now. On their behalf, thanks for the suggestion.
Rici Rici
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This is relevant to GXL as well.
I can see opportunities with GXL which is why i hold the stock, but also concerns, and this article highlights the concern.