Insightful Insights
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Long-term value
Ben MacNevin
May 12, 2014
At Montgomery Investment Management, we invite you to invest with us if your investment philosophy is aligned with our own. We might be smaller than we would if adopting an all-things-to-all-people approach but life is short and working with people whose philosophy aligns with ours makes that life a lot more enjoyable. In any event, it takes time for the businesses we acquire to realise value, and discipline is required to maintain confidence in the investment process amidst short-term volatility. With so many people gambling on quick profits, it is perfectly understandable that our approach doesn’t appeal to everyone. Perhaps more intriguingly, our approach is also shared by the management of some of our invested companies and CSL is one of them. continue…
by Ben MacNevin Posted in Insightful Insights, Investing Education.
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It comes with the supply chain
David Buckland
May 9, 2014
Following on from my article on Coca-Cola Amatil’s loss of market share in the Australian soft drink category over recent years, I was interested to read that Rod Sims, Chairman of the Australian Competition and Consumer Commission, has initiated unprecedented proceedings in the Federal Court against Coles after what it alleges is the unconscionable treatment of its suppliers. continue…
by David Buckland Posted in Consumer discretionary, Insightful Insights, Value.able.
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China Watch
Roger Montgomery
May 9, 2014
In February 2014, Robert Brusca, Chief Economist of FAO Economics, was quoted as saying: “U.S. imports are weak. And imports are closely linked to GDP. Weak imports suggest that there will be more weak GDP reports to come. That is bad news and it is the kind of bad news that trumps the good news”. continue…
by Roger Montgomery Posted in Economics, Energy / Resources, Insightful Insights.
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Lease Peace
Ben MacNevin
May 8, 2014
Having purchased McMillan Shakespeare (ASX: MMS) shares at $7.25 after Kevin Rudd’s comments, we’ve written extensively about the investment case (see here, here and here). Since then, we have also written about our expectations that changes to novated leasing are unlikely to feature in the coming budget. The market doesn’t seem to share our view, with the share price of McMillan Shakespeare reflecting material risk to the downside. continue…
by Ben MacNevin Posted in Companies, Insightful Insights.
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Childcare bidding
Ben MacNevin
May 7, 2014
Further to our post on G8 Education’s multicurrency debt programme, it’s worth noting that their newly listed competitor Affinity (ASX: AFJ) also made a sizeable increase in its debt facility the week before. continue…
by Ben MacNevin Posted in Companies, Insightful Insights, Montgomery News and Updates.
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A Bachelian view of the markets
Scott Shuttleworth
May 6, 2014
In 1900, a young mathematician named Louis Bachelier wrote a groundbreaking thesis, Théorie de la Spéculation, in which he outlined a case for modelling the financial markets under a condition of randomness. continue…
by Scott Shuttleworth Posted in Insightful Insights.
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GEM’s Multicurrency Debt Programme
Roger Montgomery
May 5, 2014
G8 Education (ASX: GEM) have just announced a multicurrency debt issuance programme to issue $500m of notes, denominated in any currency agreed between G8 and any dealer. continue…
by Roger Montgomery Posted in Companies, Insightful Insights.
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Coca-Cola Amatil on strict diet
David Buckland
May 5, 2014
In the past twelve months the Coca-Cola Amatil share price has declined by 40 per cent, from an all-time high of $15.10 to the current share price of $9.10. continue…
by David Buckland Posted in Companies, Consumer discretionary, Insightful Insights.
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The Big Four’s Best…
Ben MacNevin
May 5, 2014
The Big Four banks feature prominently in many investors’ portfolios, typically because financials account for over 40 per cent of the Australian share market, coupled with their attractive dividends. At Montgomery, we focus on a company’s growth prospects rather than yield, which is the reason we hold ANZ in the Funds. continue…
by Ben MacNevin Posted in Companies, Financial Services, Insightful Insights.
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China watch
Roger Montgomery
May 1, 2014
We believe China’s steel production is growing at the rate of 2-3 per cent per annum. Longer term, this – combined with the inevitably slowing economy and the increasing Australian supplies – is an obvious negative influence on the price of iron ore. And it’s something we’ve been warning investors about here on the blog for several years. continue…
by Roger Montgomery Posted in Economics, Energy / Resources, Insightful Insights.
