The sudden fall in the oil price in the December 2014 half-year was unexpected by the market, but the speed of contraction in oil-related investment should come as no surprise. As the German economist Rudi Dornbusch observed, “In economics, things take longer to happen than you think they will and then happen faster than you thought they could”. Continue…

by Ben MacNevin Posted in Energy / Resources, Insightful Insights.

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On 6 January 2015, Infomedia (ASX: IFM) announced the loss of a Superservice Menus contract with Jaguar and Land Rover Limited (Jaguar Land Rover). After discussions with management, we feel confident that the long-term prospects of Infomedia remain intact.

For those unfamiliar with the company, Infomedia’s primary product is an Electronic Parts Catalogue that enables dealers of major car manufacturers to identify replacement parts. The Superservice Menu is a value-added product that enables the service department to produce accurate service quotations for its customers. Continue…

by Ben MacNevin Posted in Technology & Telecommunications.

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For the past decade, the energy sector and Emerging Markets have been fuelled by a growing China. Now, as China slows and the oil price plummets, the feedback loop has turned decisively viscious. But after having it so good for so long, have today’s market participants fully understood the downside risk? Continue…

by Ben MacNevin Posted in Energy / Resources.

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For those hoping that 2014 will see the end of the mining downturn, the fallout may have only just begun.

A bellwether of the Perth market has released profit guidance that paints a very grim picture of economic conditions in the west. Continue…

by Ben MacNevin Posted in Consumer discretionary, Insightful Insights.

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A key requirement to generating long-term returns is minimising losses, or what we like to call avoiding the landmines. As the latest results demonstrate, The Montgomery Fund has done a superb job at navigating the minefield that was 2014.

There was a clear divergence in the sectoral performances of the S&P/ASX 200 in 2014. Let’s first examine the sectors that are trading below the levels from the start of the year. Continue…

by Ben MacNevin Posted in Insightful Insights, Investing Education.

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Having recently returned from a comprehensive tour of healthcare companies with our friends at UBS, we gleaned a highly important understanding of where the bargaining power lies in the industry. From this tour, it was abundantly clear whose interests matter most.

In essence, every element of the health care sector is dependent upon the doctors – this is across hospitals, health funds, pathology, service providers and medical device distributors. Continue…

by Ben MacNevin Posted in Health Care, Insightful Insights, Investing Education.

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Upon examining Ansell’s (ASX:ANN) Long Term Incentive Plan for management, we have noticed some interesting developments in the company’s capital position. Continue…

by Ben MacNevin Posted in Consumer discretionary, Health Care, Insightful Insights, Investing Education.

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