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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The Carbon Tax is one everyone’s lips at the moment. Roger Montgomery shares his thoughts on the government’s new tax with Ross Greenwood on 2GB money News. Listen to the podcast
Vocus Communications is in the business of selling bandwidth. The company resells it on the cable that runs under the Pacific between Sydney and the US. Last night they laid some of their own under another sea; Sydney Harbour. The company – in which I have previously disclosed I own a small number of shares – sent me these photos of the process. As we have met with management as part of our analysis, we were delighted they remembered our interest in everything they are up to. I thought these photos were fascinating and given its something most of us wouldn’t ever get a glimpse of, I thought you’d be interested too.
There’s no investment merit in the photos so don’t go rushing off to buy shares (certainly not without conducting your own research and after seeking and taking personal, professional advice).
Think of this post as a Value.able photo essay of what some people are up to while you were sleeping.
Meeting point and briefing at the North end of the Tunnel
A closed Sydney Harbour Tunnel
A very empty Sydney Harbour Tunnel
Hauling starts about 900mtrs from the South Exit. It’s a single piece of fibre from end to end
3kms of conduit installed the previous few nights
First meter of fibre coming off the drum
Energy Australia, the RTA and the other carrier’s fibre exiting the tunnel on the South Side
Fibre coming out of the Tunnel on the North side
Posted by Roger Montgomery and his A1 team (courtesy of Vocus Communications), fund managers and creators of the next-generation A1 stock market service, 6 October 2011.
Montgomery Investment Management founder Roger Montgomery reassures stock market investors that its quite easy to value a business. Using Roger’s simple Value.able formula, investors can value any business, listed or unlisted. “If you simply take the return on equity, divide it by the required return, so the return that you think is reasonable, and multiply it by the book value, you’ve got a valuation that’s going to be pretty sensible” Roger said. Read the transcript or watch the interview at www.abc.net.au.
This journey began with the simple question Will David beat Goliath?
Value.able Graduate Scott T resolved to take up a fight with conventional investing, by tracking the performance of a typical and published ‘institutional-style’ portfolio against a portfolio of companies that receive my highest Montgomery Quality Ratings.
By 30 June 2011 the A1 portfolio was up 1.8 per cent compared to the XJO, which was down 2.9 per cent. As for the conventional ‘institutional’ portfolio, the bankers were down 6.2 per cent.
Over to Scott T for his third quarter update…
“For new readers to Roger Montgomery’s Insights Blog, welcome. Here at Roger’s blog we are conducting a 12-month exercise measuring the performance of a basket of 10 stocks recommended by Goldman Sachs, against a basket of 10 A1 or A2 businesses that were selling for as big a discount to Intrinsic Value as we could find.
“Nine months have now passed since our twin brothers each invested their $100 000 inheritance, and it has been a very turbulent time in the market.
“Our Queensland regional accountant has had his head down at the office for the entire quarter. The end of the financial year had come and gone and hundreds of clients where sending in their tax documentation, calling with questions and chasing their refunds. Time flew by in the office, and he hardly had time to try to attract new clients, let alone watch the daily gyrations of the global equities markets. By the end of September when he was finally able to take a breath and look at the performance of his portfolio.
“He was surprised at how poorly his portfolio of A1 and A2 companies, acquired at prices less than they were worth, had faired. But he quickly realised the overall market had done even worse. Loosing 12 per cent, or $12 000, YTD was bad. But it could have been worse, much worse.
“His twin brother was in a world of pain. The federal department he worked for felt like it was under attack. The mood in the department was that the media seemed hell bent on criticising everything the government did. No initiative was well received and every announcement was instantly compared to last months failure. To top it all off, every night he would check his portfolio, to see how much more of his inheritance had vanished. The red negative number on his spreadsheet just seemed to steadily increase. With little information to go on, and a feeling of helplessness washing over him, he thought seriously about visiting his financial advisors, desperately seeking reassurance, and perhaps changing the mix of the stocks held. He resounded, “Buying what they advised would be good for 2012”.
“As per the first half of the year, dividends will be picked up in the fourth quarter, when shares have finished going ex-dividend and the dividends have actually been received.
“In summary for the nine months to 30 September 2011:
The XJO is DOWN 15.5 per cent
The Goldman Sachs Portfoliois DOWN 19.7 per cent
The A1 and A2 Portfolio is DOWN 12.0 per cent
The A1 and A2 Portfolio has achieved an OUTPERFORMANCE of 3.5 per cent over the XJO and 7.7 per cent over the Goldman Sachs portfolio.
“Here are the portfolios in detail, including cash dividends received in the first half (click the image to enlarge)
“We will visit the brothers again at the end of December for a final wrap up of their first year, and discuss their strategies for 2012
“All the Best
Scott T”
Thank you Scott.
How is your A1 portfolio performing?
Posted by Roger Montgomery and his A1 team, fund managers and creators of the next-generation A1 stock market service, 6 October 2011.
Nominations for Finsia’s Pinnacle Awards, including most outstanding industry contribution, most outstanding young professional and most outstanding future leader, were announced recently. Roger Montgomery has been nominated for most outstanding future leadership. The winners will be announced at Finsia’s 125th Anniversary Gala Dinner on October 25. Read the article.
Roger Montgomery seeks out extraordinary A1 businesses whose share prices are trading at prices less than they’re worth. Roger also looks for businesses that produce a high rate of return on equity, have little or no debt and whose intrinsic value is forecast to rise over the coming years. Do CSL, Cardno (CDD) and Saracen Minerals (SAR) achieve Roger’s coveted A1 grade? Watch this interview and also discover Roger’s 2012 forecast Value.able intrinsic value for Cardno Limited. Watch the interview
In this appearance on Your Money Your Call with Chris KImber, Roger Montgomery shares his Value.able insights on Vocus Communications and Matrix C&E. Roger also answers a viewer question on stop losses and explains why Lend Lease fails to make his A1 grade. Watch the interview
When stock markets ‘correct’, many investors become fearful. Nervous of further losses, investors sell out, causing share prices to fall even further. Value.able Graduates, like Roger Montgomery, embrace market volatility as an opportunity to acquire shares in extraordinary A1 businesses at prices less than they’re worth. In this appearance on Your Money Your call with Chris Kimber, Roger Montgomery reveals his step-by-step strategy you can follow to navigate turbulent markets. Roger also shares his Value.able insights on Computershare, Fairfax and M2 Telcommunications. Watch this interview and discover which business achieves Roger’s coveted A1 Quality Score. Watch the interview
In this interview with Ross Greenwood on 2GB Money News, Roger Montgomery shares his thoughts on investing in Silver & Gold stocks Troy Resources NL (ASX:TRY) and Silver Lake Resources Limited (ASX:SLR). Listen to the podcast
Roger Montgomery reveals nine companies trading below his estimate of their Value.able intrinsic value. Read Roger’s article.
