Insightful Insights

Operational leverage can have a powerful effect on a company’s earnings, in both a positive and a negative sense. When considering an investment in companies with high operating leverage, you must be comfortable with the company’s ability to manage downside risk. continue…

by Ben MacNevin Posted in Insightful Insights, Value.able.

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One prominent feature of the Australian equity market in the last few years has been strong support for large dividend-paying stocks. The Big Four banks have been particular beneficiaries of this, and have enjoyed share price gains that seemed to go beyond what might otherwise be justified. The first chart below compares the ASX300 (in yellow) with the banks’ sub-index (in pink) for the past 24 months. Bank shareholders have done very well during this period. continue…

by Tim Kelley Posted in Insightful Insights, Investing Education, Market Valuation.

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by Roger Montgomery Posted in Insightful Insights.

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As an owner of shares in Carsales.com Limited (CRZ: ASX) for some time, we have long thought the blackballing of the site by manufacturers would be short-lived. continue…

by Roger Montgomery Posted in Companies, Insightful Insights.

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Flight Centre (ASX: FLT) is transitioning from a travel agent to a travel retailer. You may be wondering: what is the difference between the two, and what effect will it have on the company’s long-term prospects? continue…

by Ben MacNevin Posted in Consumer discretionary, Insightful Insights, Tourism.

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One of the themes we follow here at Montgomery is healthcare. As western populations age, we expect their need for healthcare to increase materially. Also, the Baby Boomer generation is affluent, and it will likely be prepared to pay for quality care. continue…

by Tim Kelley Posted in Health Care, Insightful Insights.

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On Monday, we wrote a piece reporting the steady decrease in the price of thermal coal. For those who like to keep an eye on various key commodity prices, the metallurgical coal benchmark price for the June 2014 quarter is looking like $120/tonne. continue…

by David Buckland Posted in Energy / Resources, Insightful Insights.

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Kathmandu (ASX: KMD) has reported pleasing financial results for the January 2014 half-year. While Kathmandu’s store rollout is well on track, it’s the company’s long term potential that has us excited. continue…

by Ben MacNevin Posted in Consumer discretionary, Insightful Insights.

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As an update to our last post on TPG Telecom (TPM:ASX) in December last year, the read-through from the business’ continued growth (as reported in accounts that were released on Tuesday) is that the future continues to shape up in a promising way. In short? TPG will be a major player in the Australian telecommunications sector – regulatory change notwithstanding.

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by Russell Muldoon Posted in Companies, Insightful Insights, Technology & Telecommunications.

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I have previously suggested that a very large correction in property prices could occur if the generation of baby boomers, whose wealth is broadly stored in real estate, were required to sell in order to fund their retirement and healthcare expenses.

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by Roger Montgomery Posted in Insightful Insights, Property.

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