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Important enhancements to Skaffold

Important enhancements to Skaffold

If like me, you are a Skaffold member, you will have noticed something dramatic has happened when you logged in recently.

(If you are not a member, what are you waiting for?)

Quietly and without much fanfare, Skaffold just got a whole lot more valuable to me.

I’d like to share with you – just this once – some of the information that Skaffold members received recently and tell you a bit about the change.

Have a look at the last column of the Skaffold Score, Evaluate Screen above.  Notice the last columns are only half shaded?

You’ll notice the 2012 columns look a little different. A quarter, half or three-quarter shaded column indicates an interim Skaffold Score.

Skaffold will now update, completely automatically, quality and performance scores 6 months BEFORE the full year results are released.  That’s right, let’s suppose it is February 2013 and XYZ company issues its 2013 half year profit report.  Skaffold will immediately add new Quality and Performance score columns for the 2013 year.  Even though the full year results are not released for another six months, Skaffold will estimate the full year quality score using the half year results.

The width of the column indicates the period upon which the Skaffold Score is calculated.

Think of it as an early alert or an early warning.

Interim Skaffold Scores are based upon interim financial reports. Interim financial reports capture all relevant financial and business activities that occur since the last full year report and provide investors with up-to-date information on the state of the business.Skaffold’s interim Scores ensure you have access to the latest reported financial information for every company.Skaffold’s Scores are completely objective and generated without any human intervention or personal opinion, which can be subject to an analyst’s mood swings or whether or not they have been out the night before! Automation also means consistency and it is consistency that is the hallmark of the very best investors.

In the case of AMP Limited (AMP) above, half of the column is shaded. This indicates AMP has reported its half year result most recently and the Quality and Performance score for AMP is based on this half-year report.  AMP will report its 2012 full year results in March 2013.  At that time, Skaffold’s Quality and Performance Score columns will be updated again and be fully shaded.

Here’s a summary of the companies whose half years ended 30 June and their resulting interim Skaffold Scores.

Stable Skaffold Scores, based upon 2012 interim results

ASX Code

Company Name

2011 Skaffold Score

2012 (I) Skaffold Score

ANZ Australia and New Zealand Banking Group A2 A2
TNE Technology One A2 A2
CTX Caltex Australia A3 A3
TRU Trust Company A3 A3
NAB National Australia Bank A4 A4
AWC Alumina B3 B3
DLX Dulux Group B3 B3
GNC GrainCorp B3 B3
SGN STW Communications B3 B3
OMH OM Holdings B4 B4
WPL Woodside C3 C3
IVC Invocare C4 C4
TEN Ten Network Holdings C4 C4
GXY Galaxy Resources C5 C5
HDF Hastings Diversified Utilities Fund C5 C5
YAL Yancoal Australia C5 C5

INVEST WITH MONTGOMERY

Roger Montgomery 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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Comments

  1. I have just finished doing my annual review of the ASX300 to find the best performing companies. IVC is in my top 20 for the first time so I was doing further research and came across this post and I was very surprised to see it rated as a C4 by Skaffold.

    Look at the historical data, the company had a poor 2011, would this be why it was rated so poorly at the time? I’d love to hear how its currently rated.

    Good return on equity, consistent return on capital, rising book value for the last 9 years, steady growth in earnings (other than 2011), it ticks a lot of boxes in my opinion.

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