After 37 years of declining interest rates that have fuelled asset price increases but laid waste to lower-risk income streams, it is perhaps surprising that now should be the time to be discussing dividends. But dividends are back in the spotlight, in no small part due to pronouncements by central bankers including the US Federal Reserve’s Jerome Powell and the Reserve Bank of Australia’s Phillip Lowe that low short-term rates are here to stay, perhaps for years. Continue…

by Roger Montgomery Posted in Companies, Financial Services.

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by Roger Montgomery's Team Posted in Old Content.

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The impact from COVID-19 on Emerging Markets has, in many ways, been even more severe than the developed world. Many middle and low income countries have struggled to contain the outbreak, let alone report the infections and deaths with any degree of accuracy. Medical resources, which in most cases are in limited supply, have been stretched.  Government ordered lockdowns have crippled livelihoods where few safety nets exist. Continue…

by David Buckland Posted in Emerging Markets, Market commentary.

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In this second interview, Gary Rollo and Bernard Wilson Chief Executive Officer of Cashrewards discuss the unit economics and the growth strategy post the company’s IPO. Continue…

by Gary Rollo Posted in Companies, Montgomery Small Caps Management Video Series, Stocks We Like, Video Insights.

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Over the last few months, increased risk-taking by investors has led to ballooning prices for loss-making businesses, IPOs in unprofitable firms, and speculative ‘assets’ like cryptocurrency. This is usually a signal that the market is too hot, and is due for a correction. Is the market at risk of an imminent collapse?  Continue…

by Roger Montgomery Posted in Editor's Pick, Market commentary.

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There are few who question that post-COVID fiscal support is necessary by governments to avoid a depression. Government spending is of course debt funded and borrowing occurs through the issue of Bonds. Large deficits, such as those seen after the pandemic commenced ensure a steady supply of government bonds. And without central bank buying of these bonds, bond yields would rise. Continue…

by Roger Montgomery Posted in Companies.

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We enter the February 2021 reporting season with a materially different backdrop to the one faced by investors in August 2020. Expectations have been rebased significantly upwards – along with share prices – suggesting a more even risk-reward skew for share price direction in terms of upside/downside due to earnings surprises. Continue…

by Joseph Kim Posted in Companies, Editor's Pick.

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Australian gaming giant, Tabcorp Holdings (ASX:TAH) has received unsolicited, confidential, non-binding and highly conditional proposals to buy its Wagering & Media division. I think a demerger makes sense for Tabcorp, and its investors, as it would leave the company as a leaner, almost pure play lotteries business. Continue…

by Stuart Jackson Posted in Companies.

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