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I was reading the Independent Report on the merits of the proposed acquisition of FX Networks by Vocus Communications Ltd (ASX: VOC), and thought I would provide the following points made by KPMG, that haven’t previously been articulated in past posts. continue…

by David Buckland Posted in Companies, Technology & Telecommunications, Value.able.

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Last week, the ACCC reported it was commencing action against Informed Sources and petrol retailers for sharing price information. An except from the report follows below. continue…

by Roger Montgomery Posted in Value.able.

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Michael Lewis’ 2003 book, Moneyball: The Art of Winning an Unfair Game, describes the approach taken by the Oakland Athletics baseball team in the early 2000s. Essentially, the approach involved determining which performance measures contributed the most to the outcome of a baseball game, and recruiting players that rated highly against those measures. continue…

by Tim Kelley Posted in Insightful Insights, Technology & Telecommunications, Value.able.

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Before we launch into the resources discussion, an update on our Yellen-could-keep-rates-lower-for-longer-fuelling-a-possible-stock-market-boom thesis. continue…

by Roger Montgomery Posted in Energy / Resources, Insightful Insights, Value.able.

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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.

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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.

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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.

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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.

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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.

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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.

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

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