Editor’s Pick

It has been noted by some economic observers that Fed Chairman Jerome Powell has, in 2021, been consistent in one aspect of his predictions about inflation; that he’s consistently wrong. The message, as we’ve discussed here at the blog throughout the year, is that inflation is transitory. Base effects will ensure inflation turns to disinflation with the passage of another year, and capitalism’s supply response will solve the bottlenecks in global commodity supply chains. continue…

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

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Gary Rollo joined Chris Judd on Talk Ya Book to discuss a microcap pick in the telco and e-sports space, Pentanet (ASX: 5GG). Pentanet is a Perth based high-speed internet provider although our investment thesis is based on their volume growth opportunity in cloud gaming.

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

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Soaring house prices in Australia and overseas are but one aspect of the asset price inflation that is now gripping much of the world. While this may be good for the owners of those assets, it is leading to increased inequality within and between countries. And that’s a phenomenon that, history shows, often ends badly. continue…

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

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When the Board of Directors suddenly sacks the CEO of a company ‘effective immediately’ the share price typically tanks as investors stampede for the exit, shooting first, asking questions later. However, in the curious case of Praemium (ASX:PPS), a subscale wealth platform player with a chequered history of tactical execution, such news instead sent the share price soaring, up almost 50 per cent over two months. What could this perhaps counterintuitive market reaction be signalling? We think the company has been put in play for potential corporate activity. continue…

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

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It’s been a while since I last did a profile piece on a member of the Montgomery team and in that time, we had two skilled investment professionals join. I lift the lid and see what makes the people behind the process, the blog posts and the numbers tick. I catch up with one of our newest Portfolio Managers on our Australian Small Companies team – Gary Rollo. continue…

by Scott Phillips Posted in Editor's Pick, Montgomery News and Updates.

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Since late 2020, we’ve pivoted our portfolios to businesses likely to benefit from the economy’s reopening – and generated excellent returns. But the emergence of the highly infectious delta variant makes the future far less certain. My take is that higher quality and structural growth businesses should again be on your radar. continue…

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

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With the global electric vehicle (EV) market forecast to grow 10-fold by 2025 and 50-fold by 2030, and rising demand for energy storage, there’s never been a better time to be a lithium miner. Fortunately, Australia has a number of quality mining businesses for investors to consider. continue…

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

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Tabcorp has released the results of its strategic review into the structure of the company the board announced three months ago. The decision has been made to pursue a demerger of the Lotteries & Keno division from the company. While a trade sale of the Wagering & Media division has been rejected for the time being under this plan, the company intends to continue talking to the three bidders for the business. continue…

by Stuart Jackson Posted in Companies, Editor's Pick, Stocks We Like.

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The week kicked off with Wesfarmers (ASX:WES) making a $687 million non-binding, indicative offer to acquire Australian Pharmaceutical Industries (ASX:API) at $1.38 per share by way of a scheme of arrangement. continue…

by David Buckland Posted in Companies, Editor's Pick, Stocks We Like, Takeovers.

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Treasury last week published the 2021 Intergenerational Report which looks at the 40-year outlook for Australia’s economy. One of its key assumptions is an expanding population, fed by high levels of immigration. But, given the downsides – like urban congestion, ecological destruction and reduced wealth per capita – is gearing Australia for a rising population good public policy? continue…

by Andreas Lundberg Posted in Editor's Pick, Market commentary.

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