Intrinsic Value

One of the constants of the last 10 years is market commentators saying that “this time is different” – we believe that the principles of of value investing  never change, and Roger articulates the reasons why in this interview with Ticky Fullerton (and Marcus Padley!) on ABC1’s The Business, broadcast 7 September 2012.  Watch here.

by Roger Montgomery Posted in Insightful Insights, Intrinsic Value, Investing Education, TV Appearances.

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Portfolio point:  Reporting season is in full swing and there have been some excellent results.  We always watch GWA because it’s a company that has the potential to regain its crown but the 2012 results didn’t inspire.

GWA is a leader in the design, manufacture, import and distribution of bathroom & kitchen products, door and access systems, and heating & cooling products. Brand names of these three core building fixtures and fittings divisions include Caroma, Dorf, Fower, Brivis, Dux, Gainsborough and Trilock.  Analysis of virtually every financial measure over the past five years has seen GWA demonstrate bond like qualities.

continue…

by Roger Montgomery Posted in Companies, Intrinsic Value, Investing Education, Manufacturing.

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Do Gerard Lighting Group (GLG), Woodside Petroleum (WPL), Vocus Communications (VOC), CSL (CSL), Credit Corporation (CCP), Silex Systems (SLX), Boart Longyear (BLY), Mineral Holdings (MIN) and NRW Holdings (NWH) make the coveted Skaffold A1 score? Watch this edition of Sky Business’ Your Money Your Call broadcast 25 July 2012 to find out, and also learn Russell’s thoughts on the state of the Australian residential construction market. Watch here.

by Russell Muldoon Posted in Companies, Insightful Insights, Intrinsic Value, TV Appearances.

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Credit Corp (ASX:CCP) has just reported their FY12 results, announcing a NPAT of $26.6m versus market forecasts and company guidance of $25-28m.

The company increased its 2H12 dividend to 16 cps and most analysts were expecting 15 cps forecast. The 16 cent dividend takes the full year dividend to 29 cents, which is 45% higher on the previous year.  The company has talked down the forthcoming year and cited increasing competition resulting in higher ledger purchases.  Investors need to accept this at face value rather than continuing to assume the company will upgrade again at the next half year (as they have done consistently in the past).  FY13 guidance for NPAT is $27-29m and DPS of 29-32 cps.  Based on an estimated 50% payout and an estimated 22% ROE our valuation is further estimated (estimated being the operative word here) to remain well above the current price.  The comments here are for educational purposes only and not a recommendation.  Be sure to seek and take personal financial advice prior to engaging in any securities transactions.

by Roger Montgomery Posted in Companies, Intrinsic Value, Investing Education, Market Valuation.

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Do Newcrest Mining (NCM), Breville Group (BRG), Commonweath Bank (CBA), Westpac (WBC), Wotif.com (WTF) and CSL (CSL) make Roger’s coveted A1 grade? Watch this edition of Sky Business’ Your Money Your Call broadcast 1 August 2012 to find out, and also learn Roger’s current insights into the Mining Services sector. Watch here

by Roger Montgomery Posted in Companies, Insightful Insights, Intrinsic Value, TV Appearances.

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In his August 2012 Money Magazine article Roger discusses how company weighting in Australian market indices distort the overall performance.  Read here.

by Roger Montgomery Posted in In the Press, Insightful Insights, Intrinsic Value.

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And what are Roger Montgomery’s Value.able Insights into the latest market developments? Learn more in this edition of ABC1’s “Inside Business” broadcast 29 July 2012.  Read/Watch here.

by Roger Montgomery Posted in Energy / Resources, Intrinsic Value, Market Valuation, Takeovers, TV Appearances.

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Roger Montgomery and Ross Greenwood discuss the recent Fairfax Media (FXJ) restructuring announcement and its implications in this edition of Ross’ program on Radio 2GB broadcast 20 June 2012.  Listen here.

by Roger Montgomery Posted in Intrinsic Value, Investing Education, Market Valuation, Radio.

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Recently Mercer released their 1 year fund manager tables to the end of May 2012 (see above table).  We decided to compare our returns to the sixty -odd covered in the survey.  The red line marks the return and relative ranking of the Montgomery [Private] Fund to those of other managers.  If The Montgomery [private] Fund had been covered in the survey, it would rank No#2 all things being equal.  The median manager return -9.3%.

As many of you know Montgomery Investment Management recently hired Mr David Buckland as CEO and Mr Tim Kelley as Head of Research.  I have linked the Press Releases of their appointments with their names and you can simply click on their names above to see their backgrounds and credentials.

David has wasted no time preparing a new Product Disclosure Statement for The Montgomery Fund.  The Montgomery Fund will be a Retail Fund that will continue in the value investing tradition already employed here with great success for the very small group of investors we work for in the wholesale The Montgomery [Private] Fund.

With the hiring of Mr David Buckland and Mr Tim Kelley we now have the capacity to offer the benefits of our unique value investing style to all investors for the first time.  Of course investments will only be able to be made through the form that accompanies the Product Disclosure Statement, which will also disclose other material information such as fees and charges and personnel.

Prospective investors should seek and take personal professonal advice before making any investment decision.

At our meeting today, we discussed an anticipated August launch date as well as providing access to investment insights exclusively to The Montgomery Fund investors.

If you have been interested in investing but felt the $1 million minimum for The Montgomery [Private] Fund is not appropriate for your circumstances, then the retail The Montgomery Fund could be worth discussing with your adviser or accountant.  We currently anticipate offering a minimum investment application of $25,000.

Once again please be sure to read the PDS in its entirety and seek and take personal professional advice.

I will soon be sending you correspondence to pre-register your interest.

If however you feel you might miss that correspondence, your email has recently changed or you will be away, you can pre-register at www.montinvest.com and click the APPLY TO INVEST button.  The above form will appear and after completing it, be sure to select the button “Retail Investor < $500,000”.

You will then receive an automated email from my office and be registered to receive the PDS as soon as it’s received all of its approvals.  If you decide to proceed and/or your advisor approves, we look forward to working for you.

If you are a planner or advisor or responsible for dealer group approved lists or you are an executive at a research house or ratings agency and would like to discuss next steps feel free to call the Mr David Buckland at the office on (02) 9692 5700.

Please Note: Investments can only be able to be made through the form that accompanies the Product Disclosure Statement, which will also disclose other material information such as fees and charges and personnel.

Posted by Roger Montgomery, Value.able author, Skaffold Chairman and Fund Manager, 18 June 2012.

by Roger Montgomery Posted in Intrinsic Value, Value.able.

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Roger Montgomery certainly thinks so – and he explains why Value Investors need to do their homework to experience exceptional returns in this Australian article published on 9 June 2012. Read here.

by Roger Montgomery Posted in In the Press, Intrinsic Value, Investing Education, Market Valuation.

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