Insightful Insights

For many investors, the sharemarket seems complicated, daunting and impossible to understand. One day the market is down on fears that interest rates might rise, that Greece will default and leave the Euro zone, or that China is slowing. The next day, it’s up because Greece never defaulted, because is China is slowing and they put in a range of circuit breakers to prevent their stock market from spiralling well and truly out of control.

In our experience, confusion amongst investors exists at least partly because of the human tendency to complicate matters. That, and the fact that many experts being replied upon, simply end up being wrong and the media tend to pile onto a story each and everyday making you think that it’s a bigger deal than it actually is. continue…

by Russell Muldoon Posted in Insightful Insights, Investing Education.

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Next in our small cap series – 3P Learning Limited (ASX: 3PL). 3P Learning had its IPO in the second half of 2014 at $2.50 per share but notably hasn’t displayed a great deal of performance since. continue…

by Scott Shuttleworth Posted in Insightful Insights.

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For some time the team at Montgomery have been reporting on the risks to the relative competitive position of the major banks including doing so prior to the publication of David Murray’s Financial System Inquiry (FSI) report. continue…

by Roger Montgomery Posted in Companies, Financial Services, Insightful Insights.

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Last week we discussed Integrated Research Limited (ASX: IRI), a small cap stock with a pleasing track record of performance. Several readers mentioned they would like to hear our comments on Senetas Corporation Limited (ASX: SEN). continue…

by Scott Shuttleworth Posted in Companies, Insightful Insights, Technology & Telecommunications.

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On 2 July 2015, Medibank Private (ASX:MPL) announced that it will end its contract with Calvary Health Care from the end of August. This followed a number of press articles discussing the issue being released in prior weeks.

Medibank is refusing to pay for any patient readmissions within 28 days of a procedure, except in the case of chronic heart failure, chronic obstructive pulmonary disease, cancer and palliative care. continue…

by Stuart Jackson Posted in Companies, Health Care, Insightful Insights.

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We warned you about the Chinese stock market before it’s correction and we have been warning you, for many years, about the price of iron ore falling back to $40/tonne. There have also been many other alerts and insights here on the blog. Today’s is a less tangible, but it is no less important. Indeed, its impact on your portfolio could be much more significant and longer-lasting. continue…

by Roger Montgomery Posted in Economics, Insightful Insights.

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When valuing businesses, it is standard practice for analysts to assume that a business will grow at a constant rate forever. Yet this assumption is deeply flawed, as decline is an inevitable part of every business life cycle – just look at Sizzler Restaurants. continue…

by Ben MacNevin Posted in Companies, Insightful Insights.

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The last time we provided an update on Sirtex Medical Limited (ASX: SRX), we signed off our note on the release of their Preliminary SIRFLOX Study Result as follows:

“We have held the view that a clear benefit exists when SIR-Spheres Microspheres (SIRT) – Sirtex’s core medical device – is used for the treatment of inoperable liver cancers, over the current standard of care modalities (chemotherapy), and all that today’s announcement tells us is that it does.”

That was clearly a contrarian view at the time. Shares of Sirtex where facing some pretty aggressive selling from other investors, who either did not agree with us, or simply did not understand what was being presented to them and the likely impact on the businesses future prospects. continue…

by Russell Muldoon Posted in Companies, Health Care, Insightful Insights.

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Back in March with the help from the quant department in one of Australia’s leading investment banks, we prepared some data that allowed us to quantify the impact that lower interest rates have had on asset prices, in particular on the price of the S&P ASX 300 Index. continue…

by Russell Muldoon Posted in Insightful Insights.

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Size has its advantages in funds management, especially from a scale point of view. However with the collective Montgomery Funds exceeding $700 million in funds under management, there are many stocks which elude our research efforts due to our inability to buy enough should our investment criteria be met. continue…

by Scott Shuttleworth Posted in Insightful Insights, Value.able.

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