Insightful Insights

I noted with interest Anton Tagliaferro’s comments in today’s AFR, lamenting the apparent lack of shareholder focus shown by boards of directors in the resources and energy sectors. Reading these comments, it struck me that the boards of these companies are no doubt plagued by the same issues that confound value investors looking at these types of businesses.

As value investors, we aim to acquire an interest in a business when we can see that the value of the business is greater than the price we need to pay to own it. At Montgomery, we are concerned also with quality and a host of other factors, but let’s focus for the moment on value.
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by Tim Kelley Posted in Energy / Resources, Insightful Insights, Investing Education.

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• POSTED IN Energy / Resources, Insightful Insights, Investing Education

As you know we have long been short Iron Ore. That was clever! “…long been short…”?

Jokes aside, many investors are still buying mining and mining services companies. Their reasoning is that they have underperformed the financials and non resource cyclicals. The rationale is that because they have under performed it is time for them to catch up. Well as you know, I think that is a bit like entering a Formula 1 race with a billy kart and a couple of friends to give you a push. Just because the billy-kart has lost the last 1000 races doesn’t mean its time for it to win. An F1 car accelerates from zero to 150kmh in 1.4 seconds. No matter how hard your friends push, your billy cart simply isn’t going to match it.
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by Roger Montgomery Posted in Energy / Resources, Insightful Insights.

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In 1983, 19 per cent of the Australian workforce was in the manufacturing sector. This year, that figure stands at just 9 per cent.

This decline is a common trend across the western world.

So what’s happening to Australian manufacturing and where’s it going?
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by David Buckland Posted in Insightful Insights, Manufacturing.

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Question to the world’s biggest property developer:  Is there a bubble [In China]?

Answer:  Yes of course.

Watch this video broadcast by CBS last week.

Watch here.

by Roger Montgomery Posted in Insightful Insights, Property.

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In discussion with Ross Greenwood on Radio 2GB, Roger discusses how on a total-return basis the Australian stock market is back to pre-GFC levels, and also provides his insights on Silverlake resources. Listen here.

This program was broadcast 12 March 2013.

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

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Continuing on our CEO’s-get-paid-too-much-for-just-doing-their-job or Hey-they-didn’t-start-the-company-or-take-any-risk soap boxes, On 3 March, Switzerland conducted a referendum on executive remuneration which included some of the following proposals:

•  The aggregate compensation of the board of directors will be subject to shareholders’ approval on an annual basis
•  Severance payments and advance payments will be prohibited
•  A violation of the rules will be subject to criminal sanctions

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by Ben MacNevin Posted in Insightful Insights.

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If you are fan of pizza – I am but only the home made variety I grew up with in inner northern Melbourne – you may have seen Domino’s Pizza promoting its “biggest announcement in twenty years”. The social media campaign caught our interest because the company made a $15.4 million net profit for the six months to December 2012 but enjoys a market capitalisation of $800 million. We wanted to know what their “game changer” was going to be. As one Facebook fan wondered, it could be GPS guided pizza missiles.

Dominos have done an amazing job of harnessing the internet and social media to radically change the fast food industry but this campaign backfired badly. Believe it or not, the “Gamechanger”/”biggest announcement in 20 years”, was the release of new toppings and rectangular pizza bases. In a press release at the weekend Dominos announced:

“In the biggest and tastiest announcement in Domino’s 20 year history, Domino’s Pizza have revealed their new Chef’s Best™ Range…
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by Roger Montgomery Posted in Consumer discretionary, Insightful Insights.

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If you are an investor in ARB or any listed business exposed to car sales such as Super Retail Group or Automotive Holdings, you may be interested in the latest Vfacts stats below that were kindly sent to us by our friends at broker Taylor Collison.
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by Roger Montgomery Posted in Insightful Insights, Manufacturing.

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Below is one of the most spectacular half-year financial results we have seen this reporting season.
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by Ben MacNevin Posted in Consumer discretionary, Insightful Insights.

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In these highlights from the Sky Business Switzer program broadcast 7 March, Roger provides his insights on how recent developments in U.S. interest rate policy and Chinese domestic construction are likely to impact the Australian market. Watch here.

by Roger Montgomery Posted in Energy / Resources, Insightful Insights, Market Valuation, TV Appearances.

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