Video Insights

In this video, I discuss Computershare (ASX: CPU), a global provider of share registry and shareholder administration services, and why it caught our attention during the year. I explain how the company’s decision to sell lower-returning businesses and refocus on its core operations has improved the quality of the business, while a significant fall in the share price presented a more attractive valuation. Together, these factors led us to establish a position in Computershare. continue…

by Sean Sequeira Posted in Companies, Editor's Pick, Feature Article, Financial Services, Insightful Insights, Manufacturing, Market commentary, Market Valuation, Stocks We Like, Video Insights.

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I speak with Brett Craig, Director of Private Credit at Aura Credit Holdings, about how Aura structures its private credit portfolios with multiple layers of protection aimed at preserving investors’ capital. Brett explains how this begins with selecting quality Australian businesses, rigorous credit assessment and tangible loan security, before adding further protection through lender equity that sits below Aura’s investment in the capital structure.

We also discuss the role of diversification across thousands of underlying loans, short loan durations of typically three to five months, and independent monthly risk assessments by Open Analytics. Together, these measures are designed to manage risk across the portfolio and provide multiple avenues of protection should a borrower experience financial difficulty.

Learn more about private credit. 

Alternatively, you can speak with David Buckland or Rhodri Taylor here at Montgomery on (02) 8046 5000. continue…

by Scott Phillips Posted in Aura Group, Editor's Pick, Insightful Insights, Investing Education, Video Insights.

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I speak with Brett Craig, Director of Private Credit at Aura Credit Holdings, about how independent credit analysis can help investors and advisers better understand and compare risk across private credit portfolios.

Brett explains how Aura works with Open Analytics to independently assess its portfolios each month using bank-grade credit risk methodologies. The analysis considers every underlying loan, incorporates changing economic conditions and runs one million Monte Carlo simulations to assess expected credit losses and portfolio resilience. The resulting S&P-equivalent credit ratings provide advisers and investors with an additional, objective tool to support due diligence and understand the underlying risk within Aura’s private credit portfolios.

Learn more about private credit. 

Alternatively, you can speak with David Buckland or Rhodri Taylor here at Montgomery on (02) 8046 5000. continue…

by Scott Phillips Posted in Aura Group, Editor's Pick, Popular, Video Insights.

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I speak with Brett Craig, Director of Private Credit at Aura Credit Holdings, about the key differences between the Australian and U.S. private credit markets, and why the risks making headlines overseas may not necessarily translate directly to Australia. We discuss how differences in borrowers, lending structures, loan duration, asset security and legal frameworks can result in very different risk profiles.

We also explore Aura Private Credit’s approach, including its focus on established businesses, asset-backed lending, shorter-duration loans and portfolio diversification. Brett explains why understanding how a manager generates returns, manages liquidity and protects against potential losses can be more important than simply comparing headline yields.

Learn more about private credit. 

Alternatively, you can speak with David Buckland or Rhodri Taylor here at Montgomery on (02) 8046 5000. continue…

by Scott Phillips Posted in Aura Group, Editor's Pick, Insightful Insights, Investing Education, Popular, Video Insights.

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In this video I discuss Aussie Broadband (ASX: ABB), a growing challenger in Australia’s retail broadband market with around 15 per cent of the NBN market across its retail and wholesale services.

The company has delivered double-digit organic sales growth alongside acquisitions, while increasing scale may support further growth and operating efficiencies. Earnings are expected to grow over the next two years, supported by a cashflow-generative business and relatively low gearing.

While concerns around competition from Starlink have recently weighed on the share price, I explain why the current valuation may offer an attractive entry point if ABB continues to execute on its growth strategy. continue…

by Gary Rollo Posted in Companies, Editor's Pick, Insightful Insights, Market commentary, Market Valuation, Popular, Small Caps, Stocks We Like, Video Insights.

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In this week’s Video Insight, I explain why market volatility is a normal part of investing. While market pullbacks can feel unsettling, history shows they’ve often been temporary and have regularly occurred even in years that finished with strong returns. The key is staying disciplined and keeping your focus on the long term. continue…

by Roger Montgomery Posted in Economics, Editor's Pick, Insightful Insights, Intrinsic Value, Investing Education, Market commentary, Market Valuation, Video Insights.

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In this video insight, I explain why I believe investors should look beyond the strong earnings and seemingly reasonable valuations driving enthusiasm for artificial intelligence (AI). I examine questions surrounding optimistic market assumptions, insider selling incentives, the economics of AI, rising debt levels, weakening cash flows, and whether reported earnings are overstating the sector’s underlying profitability. I also argue that low price-to-earnings (P/E) ratios do not necessarily protect markets from significant corrections and suggest the real bubble may lie in AI earnings expectations rather than share prices. continue…

by Roger Montgomery Posted in Economics, Editor's Pick, Global markets, Investing Education, Manufacturing, Market commentary, Video Insights.

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In this week’s video insight, I take a closer look at the upcoming SpaceX IPO and some of the concerns being raised by critics. While many investors expect the listing to be a major success, I explore questions around the company’s unprecedented valuation, the folding of other Elon Musk ventures into SpaceX, rule changes that could accelerate its inclusion in major indices, and whether forced buying by index funds may help drive the share price higher. I also discuss the risk that early investors and insiders could benefit most, while everyday investors are left carrying the long-term risks. continue…

by Roger Montgomery Posted in Market commentary, Video Insights.

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In this week’s video insight, I explore the growing debate around whether AI stocks are in a bubble by revisiting a strikingly familiar research note published during the DotCom era in 1999. At the time, investors were told there were “good reasons to pay through the nose” for leading technology stocks because their growth and disruptive potential made “this time different.” Drawing on my own experience working through the DotCom bubble, I reflect on how speculative excess can continue far longer than expected before eventually unwinding, often with devastating consequences for investors. While today’s artificial intelligence (AI) leaders may have strong fundamentals, history reminds us that every bubble comes with a compelling narrative that sounds convincing in the moment. continue…

by Roger Montgomery Posted in Economics, Investing Education, Market commentary, Video Insights.

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In my latest video insight, I explain why I believe the budget could fundamentally reshape property investing in Australia. Changes to negative gearing and capital gains tax may discourage investment in established properties, slow housing and credit growth, and create unintended consequences for banks, property-related businesses and younger Australians trying to build wealth.

continue…

by Roger Montgomery Posted in Economics, Editor's Pick, Insightful Insights, Investing Education, Market commentary, Property, Video Insights.

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