QR National $6 billion share float receives conflicting reviews from analysts
The second-biggest share market float in Australia’s history, coal rail freight business QR National, is getting mixed reviews from analyst. Independent analyst Roger Montgomery says it is not a high-quality company. Read article.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. 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.
Paul Ciuro
:
First after 37 years in finanical planning your book has to be one
of the best if not the best I have came across, I am on my 2x reading to
make sure I understand it all.
Roger Montgomery
:
Thank you for that Paul,
I am delighted to hear my book is having a positive impact amongst advisors. Thank you ever so much for those encouraging comments. The lucky investors who employ advisors that consider value investing, should be well rewarded – provided of course they are very patient. I am giving a talk next week in regional NSW for an advisory group and am thrilled to be sharing my understanding of value investing with them and their clients – the more the merrier.
fred
:
Hi Roger,
Your money your call had a guy from (name withheld) the other night. I believe he said to get the buy price you multiply your P/E by EPS.??????? WHAT THE………….??????????
See ya Roger
Lloyd Taylor
:
Roger,
For thirty years I worked in big, capital intensive businesses (in the international Oil and Gas Sector). I never ceased to be amazed at the folly of many of the capital allocation decisions of major players in the sector.
Eventually, I came to the conclusion that this folly was the result of a syndrome that affected many in leadership positions in the industry. This I characterized as the Large Testicles, weighing on Small Brains, with Deep Pockets (LTSBDP) syndrome.
I see all the symptoms that characterize LTSBDP in the strategy and business plan of QR National, as enunciated in the prospectus and the accompanying advertising for the float.
I caution: beware of Large Testicles, weighing on Small Brains, with Deep Pockets. It always ends as a ball busting experience.
Regards
Lloyd
Roger Montgomery
:
Hi Lloyd,
..and no editing required this time. Thanks for that. We’ll become known as a source of entertainment as well as learning.
Ashley Little
:
Hi Lloyd
Good one mate
Michael Vanarey
:
Lloyd. Classic! and oh so true.