Insightful Insights

When the Labor Government proposed changes to the Fringe Benefits Tax in July, it sent shock waves through the novated leasing industry. While the Coalition rejected the proposed changes when it was subsequently elected, companies like McMillan Shakespeare (ASX: MMS) experienced a sharp decline in business activity during this period. It now seems however that conditions are returning to normal. continue…

by Ben MacNevin Posted in Companies, Insightful Insights.

• 8 Comments
• save this article
• POSTED IN Companies, Insightful Insights

Pop quiz everyone: if a company’s market value reflects what is considered to be its “fair value”, will this value change over the long run? continue…

by Ben MacNevin Posted in Insightful Insights, Intrinsic Value.

• save this article
• POSTED IN Insightful Insights, Intrinsic Value

The financial markets are on edge as the United States once again comes to the brink of defaulting on its debt. Many commentators have claimed that it is impossible to predict the scale of the fallout if Congress fails to reach a deal, and hence are unsure of how to act. But Central Banks may already be adjusting their reserve holdings as the credit quality of the country deteriorates. continue…

by Ben MacNevin Posted in Economics, Insightful Insights.

• 2 Comments
• save this article
• POSTED IN Economics, Insightful Insights

For many investors, the sharemarket seems daunting and impossible to understand. One day it’s down on fears that interest rates might rise or that the US will default. The next it’s up on confirmation that they have or on speculation that the debt ceiling will be raised.

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. The tendency to make simple things difficult coupled with a plethora of daily news to be distracted by ensures obfuscation rather than clarity is the environment in which investors find themselves operating in. Of course, it doesn’t need to be this way. continue…

by Russell Muldoon Posted in Insightful Insights.

• 5 Comments
• save this article
• POSTED IN Insightful Insights

The equity market can at times seem like a creature of fashion, if not completely bipolar. Particular investment attributes, like high rates of EPS growth or resistance to economic downturn, may attract a premium for a period of time only to fade down the track as other attributes rise to prominence in the minds of investors.

One of the more dramatic examples in recent times was the way the market’s views on gearing evolved through the GFC. Before mid-2007, companies with high gearing levels did not appear to be penalised by the market for the increased risk that comes with debt. Later, when debt became harder to refinance, gearing levels and maturity profiles became primary drivers of the market’s assessment of corporate merit. continue…

by Roger Montgomery Posted in Insightful Insights.

• 8 Comments
• save this article
• POSTED IN Insightful Insights

It’s Good Food Month in Sydney so now is the time to come over to our office in Pyrmont and allow us take you to lunch at one of the fantastic restaurants in The Star complex. Uh, well, actually…no. We can’t. Why? Well unless it’s Friday – they’re closed. continue…

by Roger Montgomery Posted in Economics, Insightful Insights.

• 16 Comments
• save this article
• POSTED IN Economics, Insightful Insights

The US Government debt ceiling, according to Treasury Secretary, Lew, will be exhausted by next Friday 18 October 2013.

We believe there are four alternatives that may play out over the next week as the political infighting reaches a crescendo continue…

by David Buckland Posted in Economics, Insightful Insights.

• save this article
• POSTED IN Economics, Insightful Insights

An insight emerged from some research work we did recently on broker recommendations. What we did was gather historical data on investment returns for a selection of ASX300 companies, together with the “average” broker recommendation for each company over time. continue…

by Tim Kelley Posted in Insightful Insights.

• 3 Comments
• save this article
• POSTED IN Insightful Insights

Much as we used to let our fingers do the walking through the Yellow Pages, today’s customers and students now ‘Google’ it. There are many things that don’t work perfectly, but that hasn’t inhibited Google’s growth. The following picture from Statista provides a useful snapshot of Google’s footprint. continue…

by Roger Montgomery Posted in Companies, Insightful Insights.

• 2 Comments
• save this article
• POSTED IN Companies, Insightful Insights

When the Republicans in The House of Representatives and the Democrats in the Senate couldn’t agree on the terms of refinancing legislation, and particularly whether Obamacare measures should be included (Republicans insisted on delaying Obamacare while Democrats held firm), the US government shut down. It has been 17 years since the last shutdown, in which all non-essential governmental operations cease receiving payments. continue…

by Roger Montgomery Posted in Economics, Insightful Insights.

• 3 Comments
• save this article
• POSTED IN Economics, Insightful Insights