We don’t often talk about politics on this blog however it is worth noting that the escalating geopolitical tensions between China and Hong Kong could have a lasting impact on not only the people of Hong Kong but also their financial system. Continue…

by Phillip Namara Posted in Global markets.

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Under the expectations investing framework which the Montgomery Global team utilizes extensively, one key component that attracts less consideration is the Competitive Advantage Period (CAP). The CAP can be defined simply as the time during which a company is expected to generate returns on incremental capital in excess of its cost of capital. A company’s CAP depends on many internal and external factors, and a company with a long and preferably constant CAP can be said to have an enduring moat. Continue…

by Daniel Wu Posted in Investing Education.

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Around 12 months ago, we noted that Avita Medical (ASX:AVH) – which provides a novel approach to skin regeneration – was a business worth keeping tabs on.  Although its share price has felt the effects of the COVID-19 market sell-off, our positive view of the company has not changed. Continue…

by Joseph Kim Posted in Companies, Stocks We Like.

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Investors in Australian slot machine and mobile games developer, Aristocrat Leisure (ASX:ALL), have enjoyed stellar returns over the past 10 years, with the share price up over 500 per cent in that time.  However, its results for the 6 months to the end of March were patchy, and it remains to be seen how strongly the business can emerge from the coronavirus lockdown. Continue…

by Stuart Jackson Posted in Companies, Stocks We Like.

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Gary joined Chris Judd on Talk Ya Book to discuss a sector that is exposed to huge tailwinds and specifically a holding in the Montgomery Small Companies Fund, Macquarie Telecom. You can watch the 20-minute interview below.

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by Gary Rollo Posted in Podcast Channel.

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Have you ever seen a Kugel Fountain? It’s a water sculpture crowned by a large stone sphere held up by the pressure of the water rising beneath it. A bit like the situation we see today, with stock market being the sphere, supported by a steady flow of central bank money. And therein lies the problem: turn off the water and the sphere plunges to Earth. Continue…

by Roger Montgomery Posted in Market commentary.

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Indicators worldwide continue to reflect the damaging effects of the coronavirus pandemic and associated restrictions on economic activity and business profits. Yet puzzlingly equity markets have continued to rise. This suggests that the equity market does not seem to care about earnings – yet. History shows that in the long run earnings will still matter. Continue…

by Christopher Demasi Posted in Global markets.

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The massive dislocations caused by the coronavirus pandemic are having only a temporary impact on stock markets, which are pricing in a V-shaped income, earnings and economic recovery. But is this optimism warranted? Or will we continue to see businesses negatively impacted for some time to come? Continue…

by Roger Montgomery Posted in Market commentary.

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