Financial Services
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Good news this week for two Montgomery holdings
Roger Montgomery
November 14, 2014
Firstly, Seek Limited (ASX:SEK) subsidiary Zhaopin Limited (NYSE:ZPIN) received a boost when it reported 3Q14 revenue growth of 32 per cent year-on-year (YOY); and EBITDA growth of 34 per cent YOY.
We will be investigating why the unaudited result was so strong given the company had been growing at around 11 per cent YOY; and Zhaopin’s key competitor, JOBS, reported 3Q14 revenue growth of just 13 per cent YOY. The result, which was reported under A-IFRS (Australian Accounting standards), will differ to the results prepared under GAAP for its US listing. continue…
by Roger Montgomery Posted in Financial Services, Insightful Insights, Investing Education, Technology & Telecommunications, Value.able.
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AFR: Just how good are our banks
David Buckland
November 13, 2014
The Australian Financial Review’s Jeremy Chunn published an excellent piece this week taking a look at the major banks. With full-year results for three of the four major banks delivered in the past two weeks, Jeremy asked five professional investors for their outlook on the sector. This included a London-based analyst for perspective on the value of Australian banks relative to international peers.
The Montgomery team has generated meaningful insights from our research and analysis of the banking space and the impact of the changes emanating from the Financial System Inquiry. Read the article to below to find out which bank is the stand out pick in an industry facing increasing challenges.
Click here to read the article on the AFR’s site.
Please note, you may need to be an AFR subscriber to view this article.
by David Buckland Posted in Companies, Financial Services, Insightful Insights, Montgomery News and Updates.
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Stress Testing The Banks
David Buckland
November 12, 2014
Wayne Byres, Chairman of Australian Prudential Regulation Authority (APRA) recently made a mockery of the Banks’ self-administered stress tests. continue…
by David Buckland Posted in Companies, Financial Services, Insightful Insights, Montgomery News and Updates.
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Bubble Watch #17 – The Red pill or the Blue pill?
Roger Montgomery
November 5, 2014
Some times you just wake up with a clear view of our current condition. I think my friend Chris Joye, a columnist for the The Australian Financial Review and a director at YBR Funds Management, might be feeling a little like Neo did in the movie The Matrix, when he woke up to see reality for the first time.
In his article today, Why Capitalism Is Not Doing Its Job, Chris makes the observation:
“There is absolutely a role for governments to vouchsafe a minimum level of liquidity when markets temporarily shut tight in crises. I argued this in March 2008 apropos the securitisation market, which the government ended up (very) profitably supporting with $15 billion. continue…
by Roger Montgomery Posted in Financial Services, Insightful Insights, Value.able.
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The Financial System Inquiry
David Buckland
November 5, 2014
I sat next to David Murray AO, Chairman of the Financial Services Inquiry (FSI), at a breakfast meeting yesterday and I understand his final report is scheduled for presentation to Treasurer Hockey before the end of the month.
David is a quiet and very thoughtful guy and with a chuckle he said, “I have been trying to leak the recommendations of the FSI but no one seems to be listening”. continue…
by David Buckland Posted in Companies, Financial Services, Insightful Insights, Value.able.
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WHITEPAPER
INTEREST RATES, THE BEST IT GETS. IT’S TIME TO DEPLOY CASH
Curious about the investment landscape in 2024? It appears that the current market offers a plethora of enticing opportunities for investors, a rarity not experienced since pre-pandemic times. This unique scenario stems from a confluence of factors, including elevated yields and comparatively rational equity valuations.
READ HERE -
Bubble Watch #16: Risk Corruption
Roger Montgomery
October 30, 2014
Nearly five years ago – in January 2010 – the five-year bank bill swap rate was 5.915 per cent. Westpac was offering five-year term deposits at 8 per cent for sums from $5,000 to $5 million with interest paid annually. The Commonwealth Bank and the NAB were paying 6.75 per cent for sums up to $500,000, while Bankwest offered 7.1 per cent. continue…
by Roger Montgomery Posted in Financial Services, Insightful Insights.
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Never too big to fail…
Roger Montgomery
October 28, 2014
Last week we spent some time reporting on our thoughts regarding the Financial System Inquiry and our interpretation of the submissions we’d read, as well as the possible impact on the competitive landscape for the big banks and their smaller, regional, would-be rivals… continue…
by Roger Montgomery Posted in Financial Services, Market commentary.
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House prices to crash? Ask your barber!
Roger Montgomery
September 2, 2014
Writing for Finsia’s InFinance daily report, Robin Christie has quoted the Big Four banks’ head economists speaking at the AB+F Breakfast with the Economists event in Sydney late last week. continue…
by Roger Montgomery Posted in Economics, Financial Services, Insightful Insights.
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Is there Value in the Big Four Banks?
Tim Kelley
August 7, 2014
At Montgomery, we spend quite a bit of time talking to broking analysts to try to deepen our understanding of industry dynamics. Sometimes we get a good return on that investment of time, and this was the case recently when we sat down with UBS to talk about banks. continue…
by Tim Kelley Posted in Financial Services, Insightful Insights.
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Reserve Bank of New Zealand certainly moves quickly
David Buckland
July 25, 2014
One thing we can say about the Reserve Bank of New Zealand is they certainly move quickly when they think it is appropriate to do so.
For example, in the nine-month period between July 2008 and April 2009, the New Zealand official cash rate (OCR) was cut on seven occasions, from 8.25 per cent to 2.5 per cent.
Now the opposite is occurring and in the past four months the OCR has been increased on four occasions – each by 0.25 per cent – from 2.5 per cent to 3.5 per cent. The New Zealand economy is expected to grow by 3.7 per cent in 2014, with the recovery in construction and net migration adding to housing and household demand.
The graph below compares the New Zealand 90-day bank bill rate with the New Zealand official cash rate, which commenced life in March 1999 at 4.5 per cent.
by David Buckland Posted in Financial Services, Foreign Currency, Insightful Insights, Value.able.
