November 21, 2014
We have made much of the turnaround in markets that began with President of the European Central Bank, Mario Draghi’s ‘what ever it takes’ speech. Those famous words have been cited by many – including us – as marking the bottom for financial markets and the beginning of a recovery for Europe.
But former US Treasury Secretary Tim Geithner made some surprising revelations about Draghi, as well as the stupidity of Europe’s elected leaders as they faced their financial crisis, in his memoirs Stress Test: Reflections on Financial Crises. continue…
by Roger Montgomery Posted in Economics, Insightful Insights, Value.able
November 20, 2014
Bruce Greenwald is the Robert Heilbrunn Professor of Finance and Asset Management at Columbia University, a dyed-in-the-wool Graham acolyte and the author of a multitude of books and papers on Value Investing including Value Investing From Graham to Buffett and Beyond.
At the 12th annual Post Keynesian Conference held on September 25th this year at the University of Missouri in Kansas City, Greenwald presented ‘Value Investing and the Mis-measures of Modern Portfolio Theory‘ as the plenary talk.
Instead of spending thousands of dollars learning how to become a “Property Millionaire” overnight, spend an hour or so with Bruce for free. The risk reward payoff is much more attractive.
by Roger Montgomery Posted in Insightful Insights, Investing Education, Value.able
November 17, 2014
It doesn’t seem that long ago, but the Global Financial Crisis-inspired rout in the stock market began in late 2007 and even though it bottomed in March of 2009, the symptoms that triggered the collapse, are even worse today.
But before you go jumping at shadows keep in mind that while interest rates remain low, the status quo is very likely to be maintained. Indeed low or lower rates could trigger an equity bubble before any correction is experienced. continue…
by Roger Montgomery Posted in Economics, Insightful Insights, Investing Education, Property, Value.able
November 14, 2014
Firstly, Seek Limited (ASX:SEK) subsidiary Zhaopin Limited (NYSE:ZPIN) received a boost when it reported 3Q14 revenue growth of 32 per cent year-on-year (YOY); and EBITDA growth of 34 per cent YOY.
We will be investigating why the unaudited result was so strong given the company had been growing at around 11 per cent YOY; and Zhaopin’s key competitor, JOBS, reported 3Q14 revenue growth of just 13 per cent YOY. The result, which was reported under A-IFRS (Australian Accounting standards), will differ to the results prepared under GAAP for its US listing. continue…
November 6, 2014
This week, the Sydney Morning Herald published an article titled As China’s real estate market cools, the nation’s new property moguls look to Australia. The article describes how Australia is increasingly becoming a focus for Chinese property investors, particularly as Chinese property prices slide backwards. According to Wang Peng, managing director of property developer Hanya Federal, “Many, many people are selling their house in China and buying elsewhere, maybe in Australia, maybe in the United States.” Wang goes on to say that Australia is popular because property prices are perceived as “cheap” compared to what is available in big cities in China. continue…
by Andrew Macken Posted in Insightful Insights, Property, Value.able
November 5, 2014
Some times you just wake up with a clear view of our current condition. I think my friend Chris Joye, a columnist for the The Australian Financial Review and a director at YBR Funds Management, might be feeling a little like Neo did in the movie The Matrix, when he woke up to see reality for the first time.
In his article today, Why Capitalism Is Not Doing Its Job, Chris makes the observation:
“There is absolutely a role for governments to vouchsafe a minimum level of liquidity when markets temporarily shut tight in crises. I argued this in March 2008 apropos the securitisation market, which the government ended up (very) profitably supporting with $15 billion. continue…
by Roger Montgomery Posted in Financial Services, Insightful Insights, Value.able
November 5, 2014
I sat next to David Murray AO, Chairman of the Financial Services Inquiry (FSI), at a breakfast meeting yesterday and I understand his final report is scheduled for presentation to Treasurer Hockey before the end of the month.
David is a quiet and very thoughtful guy and with a chuckle he said, “I have been trying to leak the recommendations of the FSI but no one seems to be listening”. continue…
by David Buckland Posted in Companies, Financial Services, Insightful Insights, Value.able
November 4, 2014
For those of you looking for some relief from the trails and tribulations of investing; we had to laugh when we read this excerpt from the transcript of a conference call between analysts and Cliffs Natural Resources Chairman, President and Chief Executive Officer Lourenço Gonçalves. Cliffs Natural Resources Inc. is a higher-cost iron ore producer in North America.
There’s no question about the humorous value in this dialogue. However, the question that remains is whether analysts are less likely to put a negative rating on a stock following such interactions. continue…
by Roger Montgomery Posted in Insightful Insights, Value.able
October 24, 2014
I recently came across this excellent animated educational video produced by Sirtex Medical US, showing how their core medical device, SIR-Spheres, are delivered to inoperable tumours in the liver. continue…
by Russell Muldoon Posted in Health Care, Insightful Insights, Value.able
October 17, 2014
The ACCC yesterday issued a press release on its proceedings against Coles Supermarkets for their alleged contravention of the Australian Consumer Law. We’ve highlighted what we believe to be of interest below. You can read the full ACCC statement here. continue…
by Roger Montgomery Posted in Insightful Insights, Property, Value.able