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Sirtex – a stronger result than we expected
Russell Muldoon
February 21, 2015
We take a look at Sirtex Medical Limited’s half-year result to 31 December 2014. According to Portfolio Manager, Russell Muldoon, the result is much stronger across the board, than previously modeled, particularly in dosage sales (volumes), price increases and average selling prices.
Sirtex’s half-year result is further evidence of our current belief in the business’s underlying strength and management’s strategy.
by Russell Muldoon Posted in Companies, Health Care.
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The Conference call with Consequences?
Roger Montgomery
July 26, 2012
On Monday night I attended a conference call with the exceptionally articulate George Papandreou, Prime Minister of Greece from October 2009 to November 2011. He said a sudden exit from the European Union would be chaotic. Greek GDP could quickly decline by 20% and the cost of major imports of oil and foodstuffs would go through the roof.
While Greece accounts for only 2% of the European Union GDP, Papandreou felt the threat of kicking Greece out could set a precedent for Portugal, Italy and Spain, which together account for 23% of European Union GDP. It would mean the beginning of the unraveling of Europe and create further weakness with massive consequences.
by Roger Montgomery Posted in Insightful Insights, Value.able.
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Another strong result from small Co.
Roger Montgomery
February 26, 2012
We have been delighted with the reports coming out from the smaller industrial companies and note again the growing divergence in the performance of the XJO versus the XNJ (ASX 200 versus All Industrials). We attribute this to a declining enthusiasm for the ‘resource story’ and the fact that many of the industrial companies we like (and own, including MTU) are producing such fantastic results despite evidence of a terrible domestic economic backdrop.
Headline revenue was down 14% as a result of the reduction of unprofitable EDirect business activity. Thats good. Underlying revenue (excluding the zero margin Edirect business) rose 8% and the dividend was up 29%. Business cash flow was $17.5mln compared to reported profit of $16.7mln. The impact on valuations should be positive again but ultimately will be determined by the returns generated on the $21.8mln paid for the two acquisitions made in the current half.
Since 2003 (the year before MTU listed) the company has increased profits by more than 91% per annum and is forecast to grow profits again to $36 mln in 2012. To generate the increase in profits (of $27mln to 2011) $60 million has been raised and $30 million borrowed. The return on incremental equity is about 50% suggesting the acquisitions made thus far have reflected an astute allocation of capital. We’ll be keeping an eye on the debt but reckon a recovery in the local economy (as interest rates are lowered and hopefully passed on by the banks) will give MTU another boost.
According to one of our brokers who has a buy recommendation on the stock, the following stocks are at risk of reducing their dividends: Examining for factors…”forecast earnings revisions, payout ratios, stock price stability and free operating cashflows, the companies that are most at risk of further dividend cuts are SWM, GWA, TTS, HVN, QBE and MYR. Those that have reduced dividends but continue to pose a risk include BBG, CSR, DJS, GFF, HIL, MQG, OST, PPT, PBG, PTM, TAH, and TEN.”
Not a recommendation of course. Seek and take personal professional advice before engaging in ANY securities transactions.
Posted by Roger Montgomery, Value.able author, Skaffold Chairman and Fund Manager, 27 February 2012.
by Roger Montgomery Posted in Companies, Insightful Insights, Investing Education, Skaffold.
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Are relationships more important than cars?
Roger Montgomery
March 10, 2011
In last weekend’s Weekend Australian, Terry McCrann wrote an excellent piece explaining the possible nature and motivations behind the relationship between Murdoch, Stokes and Packer. ‘Hiatus after Packer’s bombshell’ was both enlightening and entertaining. Continue…
by Roger Montgomery Posted in Companies, Media Companies.
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Student2Trader.com reviews Value.able
Roger Montgomery
October 15, 2010
The co-founder of Student2Ttrader.com interviewed Roger Montgomery earlier this year. He has since read Value.able and shared his thoughts on Roger’s first book. Read the review here.
by Roger Montgomery Posted in In the Press, Media Room.
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Value.able review by Student2trader.com
Roger Montgomery
October 1, 2010
Very few books get me this excited.
The anticipation I had when opening my package upon receiving Roger’s book was huge! Boy was I not let down!
Roger’s book literally reignited my interest toward fundamental valuation of firms. Investors should rejoice, finally a logical approach to valuing ANY company that literally ANY investor can use. I have put many friends and family on to this book! I have no doubt that Value.able is going to take the nation, possibly the world, by storm.
I really enjoy Roger’s simple approach to valuing companies and the way he explains his concepts in the book are commendable. Some of his best concepts involve seeking both qualitative and quantitative margins of safety when using his simple yet very effective valuation method.
Roger gives a lot of value to his readers in this book. I personally never accept anything I read unless I completely understand exactly what is happening, how the concept works and how the assumptions affect the outcome. Subsequently, Value.able was a fantastic read for those reasons; Roger leaves nothing to the imagination, makes no unjustifiable assumptions, and bases his methods on proven and simple logic. Best of all, you don’t need a degree in finance to understand his book.
I honestly recommend you read Value.able. Many people are already looking forward to the second edition of the book, which will no doubt add further value for readers, based on the feedback Roger received from the first release.
If you are an investor, a student, a simple person wanting an easier logical way to make your decisions or even if you are academically challenged, you will understand Roger’s approach.
Well done Roger, I look forward to reading your future books!
Co-founder of Student2Ttrader.com.
by Roger Montgomery Posted in Value.able.
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