Telecommunications supplier M2 Group (ASX: MTU) is a business we have previously owned in The Montgomery Fund, and it was a rewarding experience. MTU shares rose from around $3.50 when TMF was launched in August 2012, to over $6.00 in August 2013. We parted ways with MTU at that time, as the full-year results announcement showed that MTU’s debt-fuelled acquisition strategy had stretched its balance sheet beyond the limits we consider to be investment grade. Continue…

by Tim Kelley Posted in Companies, Insightful Insights, Technology & Telecommunications.

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One of the businesses we follow in The Montgomery Fund is BT Investment Management (ASX: BTT).  Being fund managers ourselves, we like to think we have some understanding of this type of business. Continue…

by Tim Kelley Posted in Companies, Investing Education.

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Michael Lewis’ book Flash Boys has shed some much-needed light on the practices of high frequency traders and the use by brokers of dark pools to execute trades. Continue…

by Tim Kelley Posted in Insightful Insights.

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One prominent feature of the Australian equity market in the last few years has been strong support for large dividend-paying stocks. The Big Four banks have been particular beneficiaries of this, and have enjoyed share price gains that seemed to go beyond what might otherwise be justified. The first chart below compares the ASX300 (in yellow) with the banks’ sub-index (in pink) for the past 24 months. Bank shareholders have done very well during this period. Continue…

by Tim Kelley Posted in Insightful Insights, Investing Education, Market Valuation.

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One of the themes we follow here at Montgomery is healthcare. As western populations age, we expect their need for healthcare to increase materially. Also, the Baby Boomer generation is affluent, and it will likely be prepared to pay for quality care. Continue…

by Tim Kelley Posted in Health Care, Insightful Insights.

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The National Broadband Network is a huge undertaking, with expected costs north of $40b.  While the vision is admirable, the reality is starting to look very untidy.

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by Tim Kelley Posted in Insightful Insights, Technology & Telecommunications.

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One business we follow here at Montgomery is ResMed (ASX:RMD), a leading global supplier of sleep apnoea products, including flow generators and associated masks. Some of the attractions of RMD include: Continue…

by Tim Kelley Posted in Companies, Health Care, Insightful Insights.

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These are trying times for value investors. There’s nothing we enjoy more than finding a high quality business trading at a discount to its intrinsic value, but lately, they seem to be thin on the ground. Continue…

by Tim Kelley Posted in Companies, Technology & Telecommunications.

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