Companies

In this week’s video insight, I delve into Nvidia’s (NASDAQ:NVDA) remarkable trajectory, from a key player in the autonomous car industry to a soaring tech giant, and its subsequent 1300 per cent rally. However, beyond Nvidia’s individual narrative, I confront the core challenge of valuing growth, dissecting the balance between growth rate and sustainability over time.   continue…

by Roger Montgomery Posted in Companies, Technology & Telecommunications, Video Insights.

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After the disaster for equity markets in 2022, calendar 2023 saw investors return to rewarding robust fundamentals, but only for a very narrow band of companies. Perhaps it was the fear of further rate rises or the fear of recession, but investors concentrated their bets on only the most liquid securities, those of mega cap companies. continue…

by Roger Montgomery Posted in Companies, Technology & Telecommunications.

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Wow. Talk about playing the man and not the ball! Perhaps some of the most vitriolic feedback I have encountered has come from those who have chosen to write to me explaining how wrong I am about Tesla (NASDAQ:TSLA) possibly being just another car company. 

They’re as staunchly convinced about the company’s prospects as they are about its products.  continue…

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

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The S&P500 is up 10 per cent in the first quarter of calendar 2024. Another useless fact is that the S&P 500’s rally set 22 new records in 2024 alone, and its market value has grown by over U.S.$9 trillion since late October. 

It’s worth reflecting on our prediction from last year that innovative growth stocks would outperform mega-cap tech stocks in 2024 as investors broadened their risk appetite to include small caps.  continue…

by Roger Montgomery Posted in Companies, Economics.

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Back in October 2020, in the depths of the COVID-19 pandemic, in a blog titled “why cruise lines could be worth buying again,” we proffered an investment thesis that the sharp drops in the share prices of the major listed cruise line companies did not reflect the then fast-advancing technology that would facilitate a reopening of global activity even in the absence of a vaccine, and that pent-up demand (82 per cent of passengers are repeat cruisers) for travel would see a surge in cruising activity exceeding the expectations then implied in share prices.  continue…

by Roger Montgomery Posted in Companies.

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The week of March 18, 2024 marked a significant legislative move as the U.S. House of Representatives endorsed a bill mandating the separation of TikTok from any affiliations with the Chinese government. The endorsement received substantial bipartisan support, with 90 per cent of Republicans and 75 per cent of Democrats voting in favour.  continue…

by Roger Montgomery Posted in Companies, Economics.

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It appears investors have finally woken up to the reality about electric vehicle (EV) manufacturers; they are just car companies with car company economics. It was always right to question Tesla’s (NASDAQ:TSLA) inclusion in the Magnificent 7. They are a group of companies that only have share price appreciation in common. However, Tesla has always been a bit of an outlier because it lacked one thing the other six have – pricing power. More about that shortly.  continue…

by Roger Montgomery Posted in Companies.

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As a low-cost and long-life spodumene producer (spodumene is a raw material used to produce lithium for batteries in your phone, e-bike and electric vehicles (EVs), Pilbara Minerals (ASX:PLS) is one of the highest quality single commodity miners on the ASX. The share price has been punished recently, with the spodumene price falling from over U.S.$8,000 per tonne to below U.S.$1,000 per tonne in just over 12 months.   continue…

by Daniel Chan Posted in Companies, Editor's Pick, Stocks We Like.

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Retail stocks were on the nose for some time amid fears of recession, the impact of rising interest rates, the cost-of-living crisis and inflation’s impact on the cost of doing business. 

The recent HY24 reporting season, however, revealed much of the fear was misplaced. Aggregate revenue growth tended to beat estimates despite moderating slightly. Meanwhile, even though earnings before interest, tax, depreciation and amortization (EBITDA) margins compressed as the cost of doing business grew, this was somewhat offset by gross profit growth. Companies were able to pass on higher prices and more, and in the face of those price increases, consumers were surprisingly resilient.  continue…

by Roger Montgomery Posted in Companies, Economics.

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It’s unlikely you’ve heard of Audinate (ASX:AD8), a holding in the Montgomery Small Companies Fund. Audinate is a company with shares listed in the small cap sector of the Australian stock market. It might have flown under your radar by virtue of its size. But the other reason you might not have heard of it is you’re probably not a customer.  continue…

by Roger Montgomery Posted in Companies, Stocks We Like.

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