The current equity market environment reflects soaring inflation, increasing interest rates and the first half of calendar year 2022 saw a double-digit decline in most major indices. Continue…

by Roger Montgomery Posted in Whitepapers.

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Like in most market downturns, small cap growth stocks are being punished hardest by a market that now views growth as a dirty word. This is great news for investors, as it creates opportunities to invest in businesses whose share price decline is due to changing sentiment rather than deteriorating fundamentals. In this climate, one company we think deserves investor attention is Symbio Holdings (ASX:SYM). Continue…

by Gary Rollo Posted in Companies, Editor's Pick, Stocks We Like.

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If there’s one investing axiom to hang your hat on, it’s this: the lower the price you pay, the better your returns over the longer term. With the price-to-earnings (P/E) ratios of many high quality businesses compressing, I therefore think it’s time for long-term investors to buy while so many others are fearful. Continue…

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

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Over the past two years, the evolution of the pandemic has been the leading force dictating the path of the global recovery. Despite the many challenges still present, Polen Capital believe that several secular trends that were already in motion before COVID-19 will continue to shape the world around us and play an important role in defining tomorrow’s leading businesses. In this whitepaper, Polen Capital look at what they view as some of the most important secular growth themes that may reshape the world over the next decade. Continue…

by Polen Capital Posted in Polen Capital, Whitepapers.

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Fast food businesses usually do well when times are tough, as many people – and families in particular – opt for less expensive places to eat out. It’s therefore no surprise that Collins Foods (ASX:CKF) – which operates KFC and Taco Bell in Australia and KFC in Europe – has outperformed the market. For the month ending 27 June, the Small Ordinaries Index fell eight per cent while CKF declined half that amount. Continue…

by Roger Montgomery Posted in Companies, Editor's Pick.

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Back in May, Montgomery CEO, David Buckland, said he saw New Zealand as Australia’s ‘canary in the coal mine’. As the Kiwis had raised rates earlier and more frequently than our Reserve Bank, their experience would be a good pointer to what we could expect. If he’s right, we now have the answer: big declines in consumer and business confidence, and falling property prices. Continue…

by Roger Montgomery Posted in Editor's Pick, Property.

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Since bravely declaring that inflation would be “transitory” the Chair of the U.S. Federal Reserve, Jerome Powell, has been ridiculed for being so wrong.  After all, we’ve since seen inflation exceed initial estimates and be more persistent than anticipated. But now it seems inflation could be transitory after all. And that augers well for quality growth stocks. Continue…

by Roger Montgomery Posted in Global markets, Market commentary.

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IPH Limited (ASX:IPH) is the leading intellectual property services group in the Asia Pacific region and its shares had fallen as much as 15 per cent from their 2020 highs, for no apparent reason, at which point Gary and Dominic from the Montgomery Small Companies Fund added it to the portfolio on the back of its defensive growth characteristics, strong balance sheet and monumental cash generation. The shares have subsequently rallied from $7.16 to $8.80 prior to today’s results announcement. Continue…

by Roger Montgomery Posted in Companies, Stocks We Like.

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The team at Montgomery have a busy month ahead with the August reporting season upon us. Over the coming weeks companies will provide a flood of new information for the market to pore over.

For our readers and investors keen to know who’s reporting when, we have provided a link to a reporting calendar below. As a recession in many developed economies slowly becomes the consensus view, I would expect many analysts to belatedly downgrade their earnings forecast for Fiscal 2023. While a lot of this information has been anticipated by the share market, the companies’ results will make for interesting reading.

Download the reporting calendar

by Roger Montgomery Posted in Companies.

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Roger joined Philip Clark on ABC Nightlife to discuss recession and inflation. With the costs rising for food, petrol and energy along with interest rates also going up, is the economy about to enter a recession? With the lowest level of unemployment in known memory, are you wondering how can a downturn be imminent? Listen here. 

by Roger Montgomery Posted in Radio.

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