Stocks We Like

When holding cash, it is tempting to believe there was always something to buy. Sadly, because our criteria for quality and value are so high, there are days and weeks when we come into work and there is precious little investing to do. continue…

by Roger Montgomery Posted in Market commentary, Stocks We Like.

• 17 Comments
• save this article
• POSTED IN Market commentary, Stocks We Like

Australia’s population is ageing, yet the public and private hospital systems are growing at very different speeds. Public hospital beds grew by 1 per cent each year between 2010 and 2014, compared to 3 per cent annual growth in the private system. Increasing demand for hospital care will flow to operators that are expanding capacity, which means that major private hospital companies like Healthscope (ASX: HSO) and Ramsay Health Care (ASX: RHC) are well placed to grow earnings over the long term.
continue…

by Ben MacNevin Posted in Health Care, Stocks We Like.

• 7 Comments
• save this article
• POSTED IN Health Care, Stocks We Like

Altium (ASX:ALU) designs software that is used to design circuit boards in a virtual environment. These boards are later manufactured, becoming the backbone of every electronic device.  And devices of course are proliferating.

continue…

by Roger Montgomery Posted in Companies, Stocks We Like, Technology & Telecommunications.

• 4 Comments
• save this article
• POSTED IN Companies, Stocks We Like, Technology & Telecommunications

It is said that investing in ‘growth’ companies can be riskier than large ‘blue chips’ companies. However many large blue chip companies are mature and don’t grow. What then could be riskier than being assured of zero growth? How would one maintain their purchasing power? continue…

by Roger Montgomery Posted in Stocks We Like, Technology & Telecommunications.

• 11 Comments
• save this article
• POSTED IN Stocks We Like, Technology & Telecommunications

With a market capitalisation of $1.3bn, Invocare (IVC) has quietly become the number one operator of funeral homes, crematoria and cemeteries in Australia, New Zealand and Singapore, with 250 funeral locations and 14 cemeteries and crematoria. The company commands 34 per cent of the Australia/New Zealand market and 10 per cent in Singapore. continue…

by Roger Montgomery Posted in Insightful Insights, Stocks We Like.

• 2 Comments
• save this article
• POSTED IN Insightful Insights, Stocks We Like

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.

• 9 Comments
• save this article
• POSTED IN Companies, Insightful Insights, Stocks We Like

by Stuart Jackson Posted in Companies, Stocks We Like.

• 2 Comments
• save this article
• POSTED IN Companies, Stocks We Like

Medibank Private (MPL) is not a company whose activities need to be described here. Most readers are privately insured and the largest provider is MPL, so you know who the company is and what it does. The investment thesis that saw Montgomery purchase shares in the float, and its investors subsequently profit from, was relatively simple (although the analysis and valuation work was not). continue…

by Roger Montgomery Posted in Companies, Stocks We Like.

• 3 Comments
• save this article
• POSTED IN Companies, Stocks We Like

With reporting season underway, this is the time we get to revisit the assumptions behind many of our current portfolio holdings. Through large amounts of data crunching, we are also able to compare and contrast management teams and businesses we hold against others that we do not and potentially identify opportunities. continue…

by Russell Muldoon Posted in Companies, Stocks We Like.

• 5 Comments
• save this article
• POSTED IN Companies, Stocks We Like

As the global commodity rout continues, investors are searching for sectors that can provide safe haven for their capital. Many are seeking exposure to the anticipated growth benefits of an ageing population, which has caused some healthcare stocks to trade at levels that are difficult to justify. Fisher & Paykel Healthcare (ASX: FPH) is one such company, whose NZ$8.50 share price is factoring in considerable earnings growth, but such is its prospects we feel the company may present reasonable value. continue…

by Ben MacNevin Posted in Companies, Stocks We Like.

• 2 Comments
• save this article
• POSTED IN Companies, Stocks We Like