Companies

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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In recent months, The Montgomery Fund has accumulated a significant position in Woolworths – it’s now one of our largest positions. And we remain positive on the outlook for the company over the medium term, even after the recent rally in its share price. continue…

by Joseph Kim Posted in Companies, Editor's Pick, Stocks We Like.

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It’s a testing time for investors, with so many hitherto great businesses on their knees, and others looking well over-priced. But it’s still possible to identify structural winners with a long growth runway at reasonable prices. I think one of these could be Sydney-based medical device innovator, Nanosonics (ASX:NAN). continue…

by Dominic Rose Posted in Companies, Editor's Pick, Stocks We Like.

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You’d think that Australia’s global winemaker and distributor, Treasury Wine Estates (ASX:TWE), would be reasonably immune to the effects of the COVID-19 pandemic. But the owner of famous brands like Wolf Blass, Lindemans and Penfolds is also feeling the pinch, with its latest trading update pointing to a tough year ahead. continue…

by Stuart Jackson Posted in Companies.

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Founded 27 years ago, Macquarie Telecom (ASX:MAQ) is an Australian data centre, cloud, cyber security and telecom company for mid to large business and government customers. Gary recently spoke with Chief Executive Officer, David Tudehope to discuss business and the investments the company’s making to extend its growth horizon. continue…

by Gary Rollo Posted in Companies, Editor's Pick, Montgomery Small Caps Management Video Series, Stocks We Like, Video Insights.

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Following the worst of the COVID-19 sell-off, the Montgomery Small Companies Fund increased our shareholding in Auckland International Airport (ASX:AIA) – which we’ve long regarded as a high quality business. But how quickly things change these days. In light of more recent news flow from airlines and health authorities, we decided to exit our position.

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by Roger Montgomery Posted in Companies.

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