Companies

With property prices still heading north – particularly in the major capitals – we recently took the opportunity to meet with the CEO and CFO of REA Group (ASX: REA), Tracey Fellows and Owen Wilson. Our discussion gave us a greater insight into REA’s 1H17 result and the prospects of Australia’s leading online real estate advertising company. continue…

by Scott Shuttleworth Posted in Companies.

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As many investors have noted, iSentia Limited (ASX: ISD) delivered a poor earnings announcement yesterday. The Montgomery Fund and Montgomery [Private] Fund both hold positions in ISD, and so this is clearly disappointing for us.  The combined holdings amounted to less than 2% of the assets in those Funds before the announcement, so the damage was contained, but nonetheless, disappointing. continue…

by Tim Kelley Posted in Companies.

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Challenger Financial Group (ASX:CGF) has over $60b in assets, commands the leading market position in annuities, and has a growth profile that should be supported by a rising tide of superannuation assets.  We like the business – it’s one of Montgomery’s larger positions.  Our views were confirmed this week, when Challenger presented its interim results.

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

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IDP Education (ASX:IEL) is a provider of international student placement and English language testing services. It also owns English language schools in South East Asia and organises educational events and conferences. IDP’s strong result for the six months to December 2016 saw a spike in its share price, and confirmed our faith in this high quality business. continue…

by Stuart Jackson Posted in Companies.

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If you want to find more signs of stress in the Australian economy, then look no further than the recent result of Genworth (GMA:ASX), our largest mortgage insurer. In its announcement, GMA noted rising delinquencies, moderating economic conditions, and increasing underemployment. The result also signals that bad debt provisions may be a headwind for banks in FY18. continue…

by Stuart Jackson Posted in Companies.

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by Roger Montgomery Posted in Companies.

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

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Since hitting a high of around $15 in mid-2016, McMillan Shakespeare (ASX: MMS) has fallen to around $11. At this price, and with a demonstrated ability to consistently earn high returns on equity, it seemed like a good candidate for inclusion in our portfolios. So we conducted some due diligence. The outcome is a must-read for all would-be investors. continue…

by Scott Shuttleworth Posted in Companies, Editor's Pick.

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Carsales (ASX: CAR) has an indirect investment in carconnect, a site that’s trying to disrupt the way new cars are sold in Australia. Many people dislike haggling with dealers, so carconnect has flipped the model to make dealers tender for your business online. Sounds great for buyers right? But what’s the potential upside for Carsales? continue…

by Ben MacNevin Posted in Companies.

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Since early November 2016, owners of Australian bank shares have been heartened to see stock prices rise sharply.  But this could be as good as it gets – at least for a while – and it may be time for shareholders to take some profits and seek out opportunities in over-sold small and midcap companies. continue…

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

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