Value.able

As you already know, Magellan Financial Group are approached regularly by smaller equity managers seeking an investment. To date, Magellan have only invested in one manager – Montgomery – and Magellan remain the only external investor in our company. continue…

by Roger Montgomery Posted in Insightful Insights, Value.able.

• 4 Comments
• save this article
• POSTED IN Insightful Insights, Value.able

In recent months we have looked at valuation from a few perspectives. Our conclusion has been that the Australian market is on the expensive side of fair value, but not to an alarming degree. continue…

by Tim Kelley Posted in Insightful Insights, Investing Education, Value.able.

• 6 Comments
• save this article
• POSTED IN Insightful Insights, Investing Education, Value.able

The Montgomery Fund celebrates its second anniversary this weekend, and we’d like to take this opportunity to thank all of you for your continuing support and encouragement. continue…

by Roger Montgomery Posted in Value.able.

• 4 Comments
• save this article
• POSTED IN Value.able

Cochlear Ltd (ASX: COH) released its 2014 full-year financial results on Tuesday. The market reacted favourably to the result, largely due to the considerable increase in revenues from the first half of 2014 to the second half of 2014. However, we remain cautious about the company’s prospects for two reasons. continue…

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

• save this article
• POSTED IN Companies, Insightful Insights, Value.able

One thing we can say about the Reserve Bank of New Zealand is they certainly move quickly when they think it is appropriate to do so.

For example, in the nine-month period between July 2008 and April 2009, the New Zealand official cash rate (OCR) was cut on seven occasions, from 8.25 per cent to 2.5 per cent.

Now the opposite is occurring and in the past four months the OCR has been increased on four occasions – each by 0.25 per cent – from 2.5 per cent to 3.5 per cent. The New Zealand economy is expected to grow by 3.7 per cent in 2014, with the recovery in construction and net migration adding to housing and household demand.

The graph below compares the New Zealand 90-day bank bill rate with the New Zealand official cash rate, which commenced life in March 1999 at 4.5 per cent.

by David Buckland Posted in Financial Services, Foreign Currency, Insightful Insights, Value.able.

• 3 Comments
• save this article
• POSTED IN Financial Services, Foreign Currency, Insightful Insights, Value.able

The one-year forward price-to-earnings (P/E) ratio for the S&P/ASX 200 index has varied significantly over the past few years. In 2011 it fell to 12 times, and recently market participants have been sufficiently enamoured to push the ratio as high as 16-17 times.

continue…

by Russell Muldoon Posted in Insightful Insights, Market Valuation, Value.able.

• 8 Comments
• save this article
• POSTED IN Insightful Insights, Market Valuation, Value.able

We’re just putting the finishing touches on this year’s letters to our investors in both The Montgomery [Private] Fund and The Montgomery Fund. No, we aren’t about to publish the contents of those letters here. You’ll need to become an investor to see that. What we can say is that there is ample evidence to suggest the markets could keep going higher from here. It’s true that many signals suggest that long-term investors buying at today’s levels might be setting themselves up for low returns, but that doesn’t mean prices can’t go even higher (and consequently produce even lower returns for longer-term investors). continue…

by Roger Montgomery Posted in Insightful Insights, Value.able.

• 4 Comments
• save this article
• POSTED IN Insightful Insights, Value.able

Appearing recently on Your Money Your Call, my fellow panelist recommended Titan Energy Services Limited (ASX: TTN), due to the strong growth in the Queensland coal seam gas industry. Titan’s share price has traded between $0.40 and $3.70 since its listing in late-2011, and at the current $2.13 it has a market capitalisation of $108 million. With only $11m of net debt (at December 2013), the enterprise value is $119m. continue…

by David Buckland Posted in Energy / Resources, Insightful Insights, Value.able.

• save this article
• POSTED IN Energy / Resources, Insightful Insights, Value.able

As already announced to the market, Aristocrat Leisure Limited (ASX: ALL) is preparing to undertake the biggest acquisition in its history, with an AU$1.494 billion all-cash takeover of US-based Video Game Technologies (VGT). continue…

by Russell Muldoon Posted in Companies, Technology & Telecommunications, Value.able.

• 5 Comments
• save this article
• POSTED IN Companies, Technology & Telecommunications, Value.able

It should come as little surprise that we’re fond of finding great value opportunities. But perhaps what you don’t realise is that high quality and good value are not the sole preserve of the stock market… continue…

by Roger Montgomery Posted in Insightful Insights, Value.able.

• save this article
• POSTED IN Insightful Insights, Value.able