MTU, DCG, ZGL and MQG – which is a Roger Montgomery A1 business that’s cheap right now?
In light of the market downturn, Roger Montgomery is finding bargains in extraordinary companies that are trading at discounts to their intrinsic values. In this interview with Ross Greenwood, Roger shares his thoughts on Macquarie Bank (MQG) and Zicom (ASX:ZGL). Roger also reveals which A1 and A2 MQR (Montgomery quality rating) companies are trading at discounts to their intrinsic values. Listen to the podcast.
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.
Nic Arena
:
Just had a look at Codan’s annual report. I think it looks quite good. I have an IV of $1.71. Debt has been reduced and profit up. Haven’t delved into it too much yet but it bottomed out at .995 cents the other day and if I had had their annual report before this and done a little bit more research could have definitely been a buying opportunity. Does it get your A1 rating for this report and do you have an IV? I would be interested to hear if any bloggers like the company. I know it has been discussed a little over the past year but maybe any updates people have to offer. Thanks Nic.
Ash Little
:
Agree that it looks good Nik,
I have not done an IV as my thoughts are elsewhere.
John C
:
Hi Nic – I like Codan also. I bought the stock at $1.40 back in January – before I bought Roger’s book, but although it’s been trading below the price I paid for it, I’ve always been happy to hold it, and have topped up my holding since. Back then, I was buying high yielding (dividend paying) stocks with high ROE’s, and steady growth. Codan stood out as a quality stock then, and that has been reinforced by Roger recently upgrading it to an A1 to make the top of his A2 list (most improved A2 – to A1).
I haven’t actually done an IV because I bought the stock before I bought “Value.Able”, and haven’t really considered selling it, but your $1.71 IV sounds good to me Nic, especially with the share price often down around $1.20.
Being a thinly traded small-cap, the share price moves around a bit, which is good if you want to lock in a low priced “buy” order and wait for a week or two to see what happens.
Will Carter
:
Hi guys,
My IV came up with $1.73 with good MOS bought in at acumulation price now $1.25. As Minelab metal detector owner and loved the quality ended up selling it and used the money to buy shares!
Nic Arena
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Hi Roger,
You mentioned that one of the things you didn’t like about Zicom was that the directors were selling their shares. I have looked at the asx website and can’t find where you get this information from. Can you tell me/bloggers were you can get this information. Thanks.
Craig B
:
Click on the announcements tab.
On the ASX site that is.