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.
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By Russell Muldoon & Roger Montgomery
We like to keep an eye on monthly new car sales statistics produced by the Federal Chamber of Automotive Industries. For a number of businesses we are interested in, including Carsales and ARB Corporation, they are both beneficiaries of a high level of new vehicle turnover.
Roger discusses his views on the Melbourne Cup, Oz Lotto, and Jumbo Interactive (JIN), a company whose business is based on online lottery ticket sales with Ross Greenwood on Radio 2GB. Listen here.
This program was broadcast 7 November 2012.
Westpac’s results for the year to September 2012 reinforced the ongoing challenges National Australia Bank is suffering from its Clydesdale and Yorkshire banking subsidiaries. In terms of cash earnings, Westpac’s $6.6b is 21% higher than NAB’s $5.443b. Both companies had average shareholders’ funds of $43b in the year to September 2012 however Westpac’s cash earnings to average shareholders’ funds ratio was 2.7% higher than NAB’s at 15.35%.
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Do Imdex (IMD), Sundance Resources (SDL), Woodside (WPL), Axiom Mining (AVQ), Seven West Media (SWM), Silverlake Resources (SLR), Mesoblast (MSB), Titan Energy (TTE) , Metcash (MTS), Emeco (EHL) or Magellan (MFG) achieve the coveted A1 grade? Watch this edition of Sky Business’ Your Money Your Call 6 November 2012 program now to find out, and also discover how David approaches investing in small cap mining stocks. Watch here.
If like me, you are a Skaffold member, you will have noticed something dramatic has happened when you logged in recently.
(If you are not a member, what are you waiting for?)
Quietly and without much fanfare, Skaffold just got a whole lot more valuable to me.
I’d like to share with you – just this once – some of the information that Skaffold members received recently and tell you a bit about the change.
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Here’s what you are missing out on. This is sample of the feature reports our members receive each and every month.
Become a member and don’t miss the next report exclusively for members. Join Now – Its Free!
Download SAMPLE REPORT – ‘Don’t Reject The The Reject Shop (TRS)’ HERE
In his Money Magazine November 2012 article, Roger highlights the ongoing competitive advantage of Breville Group (BRG). Read here.
We have been watching with some interest the attempts by the Steelmakers Australia consortium to engage with the Arrium board (not that we have ever owned shares in Arrium).
Often in an unsolicited takeover offer, the initial bid will be a “sighting shot”, which the board will quickly reject. According to the conventional storyline, the bidder then ups the offer, the target board relents, and shareholders are left with the impression that the board has managed to secure a better deal for them.
In the case of the Arrium bid, Steelmakers Australia appears to have diverted somewhat from the standard script. They have come back with some modifications to their original proposal (shorter due diligence, evidence of funding capacity), but have not lifted the price.
This is not be a good sign for the Arrium board, nor its shareholders. It indicates that Steelmakers Australia sees itself having a strong negotiating position.
The reason for this may be the $2.14b of debt on Arrium’s books. Steelmakers Australia may expect that Arrium’s directors will be reluctant to negotiate too hard lest the offer disappear, leaving the debt problem to be resolved by the board.
