• Andreas identifies four drivers of Codan's strong performance: Read here.

Our Best Picks (13/11/2012)


Our Best Picks (13/11/2012)


Roger is the Founder and Chief Investment Officer of Montgomery Investment Management. Roger brings more than two decades of investment and financial market experience, knowledge and relationships to bear in his role as Chief Investment Officer. 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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  1. prabha.ponniah

    Woddside petroleum and BHP have been moving sideways for quite some time now and despite good reviews that BHP maybe worth $50, 2 years ago has’nt eventuated, do you have a view on why?

    • We have not thought BHP was worth $50. Our current valuation is lower than the current price and has been for more than a year and half. Type in “iron ore” or “china” into the search box on the home page of http://www.rogermontgomery.com to obtain some insights into why we think the value of BHP is lower not higher.

  2. steve socratous

    Do you remember MCE. What was the reason you bushed that share so much? From $9.00 is down to $1.30. is TRS, CCV, SCK, going to have the same future? They are already too High. too late.
    Thank You

    • Hi Steve,

      Dear Steve,

      Thank you for your post. We don’t offer any recommendations at all. You MUST seek and take personal professional advice. When we wrote that MCE was no longer a high-enough quality company (at much higher prices) for our own investing, and even then many investors disagreed with us.

      We don’t provide any advisory service so you should not be following without your own research or without seeking and taking personal professional advice. We are under no obligation to continue to comment on any company.

      We started writing about MCE and its shares at the time were $3.00. We started warning investors in June 2011 when the price was approximately $7.00.

      Having said that we are bound to invest in a company that disappoints, we are bound to get it wrong and we are bound to take some losses and that’s why a portfolio approach is so important.

      In answer to your question there is always the possibility that TRS, CCV, SEK disappoints. They may indeed already be too high in which case you will be right and have the opportunity to buy them cheaper if at all and only after seeking personal professional advice of course!

      I hope that helps. Thanks again Steve.

  3. Just for interest, in my list I’ve got Seek as a growth / momentum stock, whilst Reject and Breville are only middling value. I definitely like Seek, and the current price is good for this type of stock.

    Those on my list (of larger caps) that are truly value, are too embarrassing to mention. As in, they are the types of stocks intelligent investors would not want to mention having in their portfolio. But, that’s the nature of value investing.

  4. Roger, in today’s Eureka Report your article “Gambling on an Ainsworth Jackpot” has upset me no end. Today’s corporate world is long on the hope of profit and woefully short on ethics. We all acknowledge that. But poker machines are another dimension again. There are no public companies involved in pure evil to a greater degree than the manufacturers of these mostrous destroyers of hope, liberty and life. Ainsworth deals in human misery on a monumental scale, using every modern, diabolical method to part the sucker from his/her mostly inadequate income.. I could never consider an investment in such a company as Ainsworth, and I sincerely hope you will have another look at your feelings on the subject too.

  5. Good three choices Roger, i like them, however for some reason i can’t quite put my finger on, The Reject Shop has never made it through my filters. It just fails the gut test for me, perhaps its in the name. If push comes to shove then i would always choose Woolworths.

    Breville and Seek however are different and i am in complete agreement with you.

    Our Breville juicer is one of the best things we have bought. They do have great products which for a business is one of the most important things i feel. This is one company i would gladly add to my kitchen draw and hold for a long time, especially with the population the size of america that is starting to get on board.

    Seek has all of the things going for it. It is offering a service that is very important to people, it is the biggest name in Australia and has some footmarks overseas, its service is on the medium that is the present and not the past (does anyone look in newspapers for jobs anymore?). I know personally that employment agencies single it out as their medium of choice. I do see that Linkedin could be a potential threat but both i feel can live peacefully together.

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