Consumer discretionary
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Is Aldi a real threat to Woolworths & Coles?
Russell Muldoon
November 26, 2014
In recent weeks you have probably noticed a dramatic increase in the volatility of Woolworths Limited (ASX:WOW) share price and wondered: what has changed recently? The answer is that something has caused the market to re-think the longer-term prospects of the business.
The detail is found in a very insightful conference call we had recently with the former head of Aldi UK, Paul Foley. continue…
by Russell Muldoon Posted in Companies, Consumer discretionary, Insightful Insights, Investing Education.
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Are China’s austerity measures starting to bite?
David Buckland
November 24, 2014
Europe and the Asia-Pacific regions account for the majority of Prada’s revenue, so it was no great surprise when Prada’s same store sales for the July 2014 half-year actually declined by 3 per cent on the previous year.
It is important to note that Chinese consumption accounts for nearly 30 per cent of global luxury goods, and around one-quarter of those purchases are made domestically and three-quarters are made when wealthy Chinese are abroad. The Chinese government’s anti-corruption and austerity measures will see pressure on the luxury goods market for the foreseeable future.
There will likely be a drag on Prada’s earnings from the planned store expansion (around 10 per cent or 60 stores) in the current financial year (to January 2015), the declining store productivity as well as the inventory build.
Another sector vulnerable to the aforementioned Chinese anti-corruption and austerity measures is gaming in Macau, and the October 2014 decline of 23 percent was the biggest year-on-year drop since the Macau government started issuing gaming revenue data in its current form in 2005.
by David Buckland Posted in Consumer discretionary, Insightful Insights, Investing Education, Value.able.
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What is happening in the retail sector?
Russell Muldoon
November 20, 2014
Asset prices are well-up on just a few years ago. No matter which way you cut the data, both the property and share markets have performed strongly. And so the economic theory goes: that if you feel wealthy, you’ll act wealthy and go out and spend. Exactly what a low interest rate envrionment – the one we are in now – is supposed to encourage.
But unlike past economic cycles, where the wealth effect has translated into the withdrawal of equity to be used on consumption of new furniture or a stereo for example, our listed retailers tell a different picture about the health of the Australian economy.
by Russell Muldoon Posted in Companies, Consumer discretionary, Insightful Insights, Investing Education.
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Expensive Pizza
Tim Kelley
November 19, 2014
Domino’s Pizza (ASX:DMP) has been one of the standout success stories on the ASX in recent years. The business has achieved excellent financial metrics with good earnings growth, and shareholders have enjoyed exceptional returns over many years, with a +60 per cent share price gain in the past 12 months alone.
However, while we applaud the management of the business for excellent financial performance over this period, we wonder whether the share market might have pushed Dominos beyond a sensible valuation range. continue…
by Tim Kelley Posted in Companies, Consumer discretionary, Insightful Insights, Investing Education.
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Looking at Ansell’s Long Term Incentive Plan
Ben MacNevin
November 18, 2014
Upon examining Ansell’s (ASX:ANN) Long Term Incentive Plan for management, we have noticed some interesting developments in the company’s capital position. continue…
by Ben MacNevin Posted in Consumer discretionary, Health Care, Insightful Insights, Investing Education.
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WHITEPAPER
THE PROPERTY RUG PULL
Discover how proposed changes to negative gearing, Capital Gains Tax and holiday home tax rules could reshape property investing, and why investors may consider private credit as property returns become less certain and tax advantages diminish.
READ HERE -
Retail trends
Ben MacNevin
October 7, 2014
The Australian Bureau of Statistics (ABS) has released retail trade data for August 2014. A single data point is not very meaningful, so instead we thought we’d draw on the deep pool of data available to explore long-term trends. continue…
by Ben MacNevin Posted in Consumer discretionary, Insightful Insights.
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Grocery shopping? Now, put your feet up…
Scott Shuttleworth
September 12, 2014
I thought it would be worthwhile to point out a particular niche in online retailing, more specifically – groceries. In FY14, Woolworths (ASX: WOW) alone sold $1.2 billion of groceries online, and this revenue is clearly in its infancy. continue…
by Scott Shuttleworth Posted in Consumer discretionary, Insightful Insights.
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Super Ambitious Group
Scott Shuttleworth
August 29, 2014
Last week, Super Retail Group Limited (ASX: SUL) reported to an uncertain retail sector. Having a flick through their investor presentation and the group’s financials – and considering some of the headwinds over the last financial year – it’s quite a fair result. continue…
by Scott Shuttleworth Posted in Companies, Consumer discretionary, Insightful Insights.
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Stocks to watch
Russell Muldoon
August 14, 2014
We’ll take a break from The Screen series for a few weeks, as our focus shifts to full-year company results and outlook statements. And while it’s still early days, a few businesses have already caught our attention. Below follow our notes on two of them. continue…
by Russell Muldoon Posted in Companies, Consumer discretionary, Health Care, Insightful Insights.
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JB Hi-Fi – can growth be maintained?
Roger Montgomery's Team
August 7, 2014
In this article for The Switzer Super Report, Roger looks to JB Hi-Fi, a company that’s had a stellar run over the past decade, who may now be facing slowed growth in light of competitive forces. Read here.
by Roger Montgomery's Team Posted in Consumer discretionary.
