The income of Australia’s major banks is largely dependent on the economy’s appetite for credit. When credit growth is modest, as it has been of late, the banks must reduce costs in order to maintain earnings growth. But this stage of the credit cycle also presents an earnings tailwind in the form of lower impairment charges, which the banks have been enjoying. Continue…

by Ben MacNevin Posted in Economics, Financial Services.

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Flight Centre (ASX: FLT) released its December 2013 half-year results on the morning of Wednesday 26 February 2014. In the hours after the release, the company’s share price declined by 3.5 per cent. From this level, the price then rallied 7 per cent to finish the day at $51.39. What happened? Continue…

by Ben MacNevin Posted in Companies, Insightful Insights.

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In January, we wrote about the need for Mermaid Marine (ASX: MRM) to expand internationally due to their limited domestic opportunities. It has since announced a major overseas acquisition. Have the rough seas subsided? Continue…

by Ben MacNevin Posted in Insightful Insights.

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InvoCare (ASX: IVC) owns and operates funeral homes, cemeteries and crematoria in Australia, New Zealand and Singapore. Over the past decade, the company has grown their net profit after tax by 16 per cent each year. However, in the year to December 2013, InvoCare recorded a flat net profit after tax at $42.5m.

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by Ben MacNevin Posted in Companies, Health Care, Insightful Insights.

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Shareholders of Rio Tinto (ASX:RIO) and BHP Billiton (ASX:BHP), the world’s largest mining companies, have been pleased with their recently released profit announcements. Yet, upon closer inspection, shareholders of some mining services companies may not be pleased. Continue…

by Ben MacNevin Posted in Companies, Energy / Resources.

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Greencross Limited (ASX:GXL) is rolling out a chain of co-located retail stores and veterinary clinics. Since a business’s success is dependent on its staff, how is Greencross going to manage people with such different qualifications and needs?

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by Ben MacNevin Posted in Insightful Insights.

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Regional Express Holdings Limited (ASX:REX), Australia’s largest independent regional airline, released a profit warning on Friday evening in which the Chief Operating Officer used very strong language to warn of the sector’s imminent collapse. Continue…

by Ben MacNevin Posted in Airlines, Companies.

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Analysts weren’t expecting a bumper Christmas period; the general expectation was for relatively steady sales growth to finish the year. However, sentiment in the retail sector has taken a negative turn after disappointing trading updates from key retailers. Should this be cause for concern? Continue…

by Ben MacNevin Posted in Consumer discretionary, Insightful Insights.

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