Boral generated rare headlines this week when it announced an agreed bid for rival US building materials company Headwaters Inc for US$2.564bn. Boral called it a “strategically compelling acquisition” with “attractive financial metrics” that will transform the company. But, looking at the history of such take-overs, and the metrics behind the deal, we are not as optimistic. Continue…

by Stuart Jackson Posted in Companies.

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If you’re an investor in resources companies, you know it’s a bumpy, rollercoaster ride, with periods of glee interspersed with periods of gloom. But is all that volatility worth it? Or are investors better off in the long term investing in the broader market? We did some research, and the results are worth reading. Continue…

by Stuart Jackson Posted in Energy / Resources.

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Over the last week, ANZ, NAB and Westpac reported their full year 2016 results, while CBA provided a trading update for the September quarter.  So I thought it would be a good time to review the key themes to emerge.

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by Stuart Jackson Posted in Editor's Pick, Financial Services.

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A move up in bond rates, like we’ve seen over the last two months, inevitably feeds into the valuations of growth stocks. Add in any concerns about the near term outlook and the share price movement can be really extreme.

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by Stuart Jackson Posted in Global markets.

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As investors, we are always interested in companies with a barrier to competition from other firms. However, we need to be mindful that, sooner or later, the barrier can start coming down. Take the gaming industry. It seems to be well insulated from competition by government regulation. But there could be a danger in relying on such barriers to entry. Continue…

by Stuart Jackson Posted in Companies.

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When Britain voted to leave the EU back on 23 June, it sent the British Pound (GBP) into a tailspin. It’s depreciated 18 per cent against the USD and AUD since the day before the vote. Brexit, and the weakened GBP, will have a material impact on the earnings and valuations of a number of ASX-listed companies doing business in the UK. But not all.

by Stuart Jackson Posted in Companies, Editor's Pick, Global markets.

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Brexit, IDP Education

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One of the stocks we hold in the domestic portfolios is TradeMe (TME:ASX). The company is an online marketplace for goods – effectively the eBay of New Zealand – and enjoys a dominant market position. But that could soon change. It is about to go head-to-head with Facebook, which has announced the launch of its own marketplace function. We will be watching TradeMe’s tussle with Facebook very closely. Continue…

by Stuart Jackson Posted in Companies.

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Facebook, TradeMe (TME)

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Back in May, when ANZ cut its dividend and flagged a lower dividend payout ratio, it was a strong signal that bank investors should not count on an unending stream of rising dividends. As dividend payments is a topic close to most retail investors’ hearts I thought it would be timely to take a closer look at what the future holds. Continue…

by Stuart Jackson Posted in Financial Services.

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APRA, banks

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TPG’s results to 31 July 2016 provided the market with its first full 6-month period snapshot of the company including the iiNet acquisition.

by Stuart Jackson Posted in Editor's Pick, Video Insights.

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TPG

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Our big banks are a core holding in most Australian portfolios. But with long-term loan book growth likely to be materially lower in coming years, bank profits – and share prices – could be adversely impacted. Continue…

by Stuart Jackson Posted in Financial Services.

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banks

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