Insightful Insights

Experience in financial markets has taught us that while we cannot predict markets or prices we do know that they frequently move in a way that causes pain for the majority.  Even Buffett and Munger observed this when they noted the stock market is designed to transfer money from the impatient to the patient. continue…

by Roger Montgomery Posted in Energy / Resources, Foreign Currency, Insightful Insights.

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Whether the focus is on shares, property or other financial markets, we have entered an environment of low returns. Anyone believing they will see double-digit returns from stock market indices is not just optimistic but misguided. It is therefore more important than ever to find other avenues to generate alpha (the active return over an index). Every bit of alpha will be that much more valuable in a low return regime.

by Roger Montgomery Posted in Insightful Insights.

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The rather lackluster start to the year from both Australian Equities and Global Equities (in Australian dollars) has been met with an increased number of LICs (Listed Investment Companies) trading at discounts to their Net Tangible Assets backing. In fact 59 out of the 87 LICs trading on the ASX now trade at a discount, with 29 of them trading at a discount of more than 10 per cent. continue…

by Scott Phillips Posted in Insightful Insights.

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With the US S&P 500 rallying 16 per cent over the past ten weeks from 1,810 points to 2,100 points – within a couple of per cent of its record high – I thought I would detail the Index’s consistent earnings downgrades and ask the question why are the analysts so optimistic? continue…

by David Buckland Posted in Insightful Insights.

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At last the Audit Profession has decided to move in the Twenty First Century with 111 countries, including Australia (and China), committing to adopt new audit standards from December 2016.  These new audit standards will make audit reports more informative, transparent and revealing with the introduction of ISA 701, which requires auditors of listed companies to specify key audit matters (KAMs).
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by David Buckland Posted in Insightful Insights.

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The Commonwealth Bank of Australia (ASX: CBA) has announced a deal with Workday to provide enterprise software via the cloud. We consider the implications for TechnologyOne (ASX: TNE), the Australian-listed enterprise software provider. continue…

by Ben MacNevin Posted in Insightful Insights, Technology & Telecommunications.

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Sydney property was a star performer in 2015 and a lucrative earner for many real estate agents. But 2016 has turned into a horror year for McGrath Estate Agents. A recent downgrade in its profit forecast for the year saw its shares plunge just four months after listing.

You can listen to all of the team’s television interviews through browsing our media library, view more clips here.

by Roger Montgomery Posted in Insightful Insights, Property.

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McGrath Estate Agents (ASX: MEA) share price fell over 30 per cent on the back of an announcement that its profits will fall short of the prospectus forecasts in FY16.

The company blamed an “unforeseen low volume of listings and sales” that started to emerge in the latter part of March. Prior to this, the company was performing slightly ahead of the prospectus forecasts. continue…

by Stuart Jackson Posted in Insightful Insights, Property.

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Are your returns stuck in a time warp? Are you surprised to hear Telstra’s share price is lower than it was in 1999? The NAB share price is also lower. That’s sixteen years with no price growth.

Rio and BHP’s share prices are lower than 11 years ago and Woolworths is lower than almost a decade ago. You might put it down to the resource cycle, disruption or poor management, but in each case I put it down to a poor definition of what a blue chip company is.You can read all of the team’s press articles through browsing our media library, view more articles here.

by Roger Montgomery Posted in Insightful Insights.

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It’s not hard to find people who love New Zealand – the scenery, the adventure activities and the people are all simply amazing.  On one measure however it appears that New Zealand may be loved to death. continue…

by Roger Montgomery Posted in Insightful Insights.

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