Dear investor, should you invest in this float?
Dear investor, should you invest in this float?
OzForex is an online platform providing foreign exchange transfer services for consumers and businesses. In this white paper we explain why the business meets many of our tests for an extraordinary business, but why price is the only stumbling block to our participation.
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MORE BY RogerINVEST WITH MONTGOMERY
Roger is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking.
Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
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The drop in Oroton’s share price would also be partly due to loss of the distribution contract for Polo Ralph Lauren, which it held for 20+ years. It recently entered into a 10 year agreement with Brooks Brothers, which obviously isn’t as well known here.
In terms of Oroton’s popularity in Asia, I can attest that my Taiwanese wife and mother-in-law both appreciate the brand. I find it bizarre that Oroton do not have a store in Taiwan.
Other than mainland China, Japan and Korea most of the wealth in asia is held by overseas chinese (particularly in Hong Kong, Taiwan, Singapore, Malaysia, Indonesia and Thailand). Basically chinese wealth can be split into new money (mainland China) and old money (overseas chinese).
I think Oroton should be targeting the ‘old money’, as the tastes of the newly rich mainland chinese tend to focus on iconic brands.
I’d like to see them open stores in Bangkok (which would also take advantage of the growing Thai middle class), Taiwan (Taipei, Taichung & Koahsiung), and possibly Indonesia (while Indonesian Chinese are some of the wealthiest in the region, they tend not to display their wealth as much due to security and discrimination issues). A greater presence in Japan and Korea should also be pursued. I think a greater presence in mainland China should be a lesser priority at this time.
Great thoughts Ben. Well done.
What is your take on NNW the shiny brand new IPO Roger?
We are slowing analysing our way through all the IPO’s
Hello Roger, A very interesting and informative article, was the estimated value of OZ FOREX derived by using skaffold and / or other factors within the structure and make up of the company? i would also like to ask your thoughts about the changes at Oroton as i do not know how to send a message to you by twitter, it still appears to be a strong company , low debt and good cash flow but the share price has dropped quite a bit since Sally Mcdonald left, i have not checked my skaffold lately but would appreciate your opinion.I am very impressed with the montgomery investment philosophy and i am about to set my wifes super up within your retail fund david has sent all the information i need. hope you can make sense of message Kind Redards Harry
Hi Harry, First step is to log in to Skaffold every morning. Takes a few minutes and provides a useful spotlight on the market – a launching point for further investigation and a massive time saver…
Sally added considerable value and if the new manager keeps running the same asia expansion strategy the thing to look for will be the speed of the roll and the reasons (if any) for any delays. ALso worth investigating the CV of the replacement…
I have not had a look into Oroton for a while but i am concerned that newly arrived competition and a possible change in the perception of the brand might be causing them some difficulties in Australia. Just my 2 cents based on some scuttlebut i have heard.