Insightful Insights

Markets will typically pay a premium for a company depending on growth expectations, and then management is burdened with meeting these expectations, however rosy they may be. It’s rare then to find a company, which has attractive growth prospects, which are not being valued by the market. IMF Bentham (IMF) is one such company, which has laid the foundation for long-term growth, but the market seems focused on its short-term underperformance.

by Ben MacNevin Posted in Companies, Insightful Insights, Stocks We Like.

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For over a year we have been warning that the property market in Australia might experience a set back.  To summarise, the following steps sets out the thesis: continue…

by Roger Montgomery Posted in Insightful Insights, Property.

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According to the World Steel Association, global production for the March Quarter 2016 was 385.7 million tonnes, down 3.6 per cent year on year from 400.3 million tonnes.  China’s production for the March Quarter 2016 was 192.0 million tonnes, down 3.2 per cent year on year from 198.4 million tonnes. continue…

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

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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.

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by Roger Montgomery Posted in Insightful Insights, Property.

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