Insightful Insights

The S&P/ASX200 Index has increased by 15 per cent since mid-2012 to its current level of 4720, which has focused the attention of market commentators on the “psychologically important” 5000 mark. Since the GFC, the S&P/ASX200 Index has not been able to break through 5000 despite nearing this level in early 2010 and early 2011.

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

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It is winter in the United States, and there has been a severe outbreak of influenza. New York State declared a public health emergency on Saturday, with nearly 20,000 cases of flu reported across the state so far this season (compared with 4,400 cases reported in the whole of last season). There has been a widespread public services campaign to encourage people to receive vaccines, and under the emergency order pharmacists in New York will be allowed to administer flu vaccinations to patients between 6 months and 18 years old, temporarily suspending a state law that prohibits pharmacists from administering immunisations to children.
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by Ben MacNevin Posted in Health Care, Insightful Insights.

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Value investing can be a laborious process. Properly understanding the many aspects that influence the value of a business is time-consuming, and in many cases the end result is to add one more company to the large pile of “No” decisions.

There are much quicker ways to arrive at investment decisions, one of which is to use trend-following systems. A large body of academic research has demonstrated that, historically, it has been possible to earn excess returns in a variety of markets over time by employing systematic trend-following methods (note that systematic trend following is something done by a computer employing back-tested statistical methods, not by an analyst casting their eye over a price chart).

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by Tim Kelley Posted in Insightful Insights, Investing Education.

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The following report has been contributed by Harley Grosser – a private investor. Harley has identified a small company he would like to share his findings and personal beliefs about called Paragon Care Ltd which is aiming to take advantage of the growing aged care industry. Paragon is a distributor and manufacturer of medical equipment, and has attractive prospects if it can continue securing major contracts with hospitals. Investing in small companies that have high growth potential but are yet to produce sustainable earnings is risky, but they can be rewarding for people with the right risk profile and investment horizon. Do not purchase or sell any securities without first seeking and taking personal professional advice.

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by Harley Grosser Posted in Companies, Insightful Insights, Intrinsic Value.

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At Montgomery Investment Management we are pleased to learn that Graham Turner of Flight Centre has been named the best value Chief Executive Officer for 2012 by Egan & Associates.

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by Ben MacNevin Posted in Insightful Insights, Tourism.

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The Montgomery Fund was launched on 17 August 2012. In the period to 31 December 2012 The Fund delivered a return of 16.88%, after expenses.

Over the same period the S&P/ ASX 300 Accumulation Index appreciated by 8.68%.
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by David Buckland Posted in Insightful Insights, Value.able.

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Back in August 2012 when CCP’s share price was falling, following what we considered to be conservative guidance for the full year, internally we prepared the following table:

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by Russell Muldoon Posted in Companies, Insightful Insights.

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With the number of Australian friends who seemed to be enjoying White Christmases (overseas holidays) this year, I wanted to briefly discuss an often touted criticism of Webjet’s business model.

Like many businesses, customers can easily search their website free of charge for what they are after (in the case for flights, room nights, holiday packages), but then purchase the product and bypassing the booking fees by going directly to the supplier – in this case Airlines, hotels, car rental agencies. This is the core reason Webjet’s business model was considered ‘unsustainable’.

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by Ben MacNevin Posted in Insightful Insights, Tourism.

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Despite the global economic slowdown, 2012 was a good year for investors in the major share markets.

The Australian All Ordinaries Index, was in the middle of the pack, appreciating 13.5 percent from 4,111.0 to 4664.6. Virtually the entire gain was recorded in the six months to December 2012.
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by David Buckland Posted in Insightful Insights.

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JB Hi Fi (ASX:JBH) is a retailer we have followed closely over the years. What attracted us to the business was a focused and well-executed business model that delivered strong returns on equity, coupled with a store roll-out program that allowed those returns to be realized on an expanding pool of assets. Over time, this led to increasing market share and growing EPS. In fact, between 2004 and 2010 EPS grew at a rate of over 30% p.a. compound.

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by Tim Kelley Posted in Companies, Insightful Insights, Value.able.

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