Companies

For more evidence that discretionary retail is absolutely booming right now, particularly the furniture and homewares category, look no further than Nick Scali’s (ASX:NCK) strong FY20 result and near-term outlook. NCK’s result follows hot on the heels of strong updates by key homewares peers, Temple & Webster (ASX:TPW) and Beacon Lighting (ASX:BLX), and reinforces our conviction in Adairs (ASX:ADH) heading into results season. continue…

by Dominic Rose Posted in Companies, Consumer discretionary, Stocks We Like.

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The current boom in equities is not as broad-based as it might first appear. Putting aside materials and gold stocks, the rest of the market can be divided into the ‘haves’ and the ‘have nots’. And it may be more important than ever to be an owner of the ‘haves’.

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by Roger Montgomery Posted in Companies, Editor's Pick, Stocks We Like.

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Much has been made of the exorbitant share prices of the world’s largest technology companies – Facebook, Apple, Amazon, Microsoft and Google. But, given the quality of their businesses, their market dominance and continuing growth prospects, are they really too expensive? continue…

by Roger Montgomery Posted in Companies, Stocks We Like.

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Since listing on the ASX in January 2019, the share price of broadband provider, Uniti Wireless (ASX:UWL) has enjoyed spectacular growth. From an IPO price of 25 cents, shares have rocketed to $1.60, with the business growing via consolidation. The upcoming merger with OptiComm Limited (ASX:OPC) will make the business even stronger. continue…

by David Buckland Posted in Companies, Stocks We Like.

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In 1976, US economist, Herbert Stein, famously stated that “If something cannot go on forever, it will stop.” His observation could well be applied to the ballooning value of many technology companies, some of which have never made a profit, and possibly never will.  Which is why this might be a good time to look at high quality businesses that have been left behind by the rally. continue…

by Roger Montgomery Posted in Companies, Editor's Pick, Market commentary.

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This reporting season is likely to be one unlike any seen prior given the unprecedented disruption wrought by COVID-19. Earnings estimates range significantly for companies, while forward estimates that rely on a base of earnings are also subject to significant revision. Guidance will be difficult to come by this reporting season. continue…

by Joseph Kim Posted in Companies.

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City Chic Collective (ASX: CCX) has been nominated as the ‘stalking horse bidder’ for the e-commerce assets of Catherines, a US women’s plus-size fashion chain. The Montgomery Small Companies Fund is an investor in CCX, and we like what we see in this latest move by the company to execute its global digital growth strategy. continue…

by Dominic Rose Posted in Companies.

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With reporting season kicking off in Australia, we expect the disparity between earnings expectations and results to be the widest in memory. As an example, pump and filter manufacturing company GUD Holdings Limited has stated the demand environment is simply too dynamic to be able to provide guidance. continue…

by Roger Montgomery Posted in Companies.

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Structural growth companies – like Appen (ASX:APX) and Nanosonics (ASX:NAN) – are generally involved in cloud-based technology, data centres, digital payments, e-commerce and medical technology.  Importantly, they can grow regardless of the COVID-19 crisis and the broader economic cycle. Which is the reason we hold an overweight position in our small companies portfolio. continue…

by David Buckland Posted in Companies, Stocks We Like.

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Our small cap fund’s investments in selected e-commerce enabled retailers has served us well during the COVID-19 period. With total consumption likely to decline over the next year or so, we think these businesses should continue to outperform Brick & Mortar retailers. continue…

by Roger Montgomery Posted in Companies, Consumer discretionary.

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