Consumer discretionary
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Sweet as bro’
Stuart Jackson
September 21, 2015
One of the themes that has driven some stocks in the last 6 to 12 months has been food quality and safety in China. Stocks such as Bellamy’s (ASX: BAL) and Blackmores (ASX: BKL) have experienced extremely strong share price appreciations recently on this theme as demand from Chinese consumers for premium international brands with perceived food safety has driven significant sales growth. continue…
by Stuart Jackson Posted in Companies, Consumer discretionary.
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Skin in the Game
Ben MacNevin
September 15, 2015
A primary reason for many floats is for the vendors to realise a return on their investment. But when this is the case, potential shareholders become rightly sceptical about the underlying quality of the business. So how do vendors ease market concerns while still maximising their return? continue…
by Ben MacNevin Posted in Consumer discretionary.
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WHITEPAPERS
Quiksilver: Montaka’s opportunity
Roger Montgomery
September 15, 2015
Readers of the Montgomery Global magazine will know that last year we prepared a short thesis on surf wear company, Quiksilver (NYSE: ZQK). Here was a company experiencing declining same store sales, while servicing high levels of debt. Meanwhile the analyst community held unduly optimistic expectations for a rapid recovery in sales and profit margins. Three of four elements of the Montgomery Global Investment Management’s team’s framework for profiting from a deteriorating business were met. continue…
by Roger Montgomery Posted in Consumer discretionary, Whitepapers.
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Branding: A debate; is it really a competitive advantage?
Scott Shuttleworth
September 14, 2015
Let’s define the term ‘competitive advantage’, what does it mean? There’s unfortunately many definitions, confusing a vital tenant of investment theory. Bruce Greenwald of Columbia University defines it as “being able to do what rivals cannot.” We can extend on this in such a way to suggest that having a competitive advantage will enable a firm to earn abnormally high returns.
Interestingly, competitive advantages when defined in this light, can both be thought of as the same as barriers to entry. continue…
by Scott Shuttleworth Posted in Consumer discretionary, Insightful Insights, Manufacturing, Market Valuation.
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Is Myer’s Equity Raising Throwing Good Money After Bad?
Stuart Jackson
September 14, 2015
Myer (ASX: MYR) recently surprised the market by pre-announcing its financial year 2015 (FY15) results and launching a deeply discounted 2 for 5 entitlement issue. While the FY15 results were roughly in line with market expectations, the greatest focus was on the company’s new strategy announcement. continue…
by Stuart Jackson Posted in Companies, Consumer discretionary, Insightful Insights.
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Can Things Go Better With Coke?
Stuart Jackson
August 24, 2015
Coca Cola Amatil (ASX: CCL) reported its half year results during the week. The company has been under pressure for some time. The consensus view is that a combination of the growing market power of the major supermarkets, combined with a consumer shift away from soft drinks, has resulted in a downward spiral in volumes and earnings over the last 3 to 4 years. continue…
by Stuart Jackson Posted in Companies, Consumer discretionary, Insightful Insights.
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Ubiquity Destroys Luxury
Roger Montgomery
July 31, 2015
At the inception of the Montaka Global Fund on July 1 we invested, on behalf of our clients, against the business models of some very high-profile, luxury brands, like Prada, Michael Kors and Coach. continue…
by Roger Montgomery Posted in Consumer discretionary, Insightful Insights.
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UnMcDonalds?
Roger Montgomery
July 28, 2015
The photo you are looking at was taken earlier today after a meeting with a very impressive planning firm. It’s a photograph of a bus running south on Castlereagh Street in Sydney and it’s an admission by one of the world’s iconic companies that its brand might be worth zip. continue…
by Roger Montgomery Posted in Consumer discretionary, Insightful Insights.
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Sobering
Russell Muldoon
June 4, 2015
You might recall we have previously articulated Aldi’s game plan in Australia. Our recent posts here and here, provide some insights. In summary the company is significantly more efficient. They have 1200 Stock Keeping Unit’s per store, instead of 30,000 at Woolies or Coles, which means they can employ six people to run a store instead of 25.
by Russell Muldoon Posted in Consumer discretionary, Insightful Insights.
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Why is Aldi so successful?
Russell Muldoon
May 29, 2015
We have previously written at length on Aldi and the threat it poses to the Australian Supermarket Industry. Today we focus on why they have been (and will likely remain) so successful. continue…
by Russell Muldoon Posted in Companies, Consumer discretionary, Insightful Insights.
