Value.able: Two outstanding mid-caps come into view
Investors should keep a close watch on Monadelphous and Fleetwood. If their premiums to intrinsic value decline, they may present attractive opportunities. Read Roger’s article at www.eurekareport.com.au.
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.
John C
:
FWD is my largest holding, and MND is number 3 (MIN is at 2) and I like them a lot. I also like and own some JBH – and didn’t JBH take a tumble today!! Sure, there was a profit downgrade, but it looked like a bit of a market over-reaction (panic-selling?) to me… Down to $12.56 and closed at $12.71 (down from $15 yesterday). Unfortunately, I was at work, with no internet access, so only became aware of the buying opportunity after market close. Hopefully, they won’t bounce back up too much on Monday morning!
John C
:
After reading Roger’s latest post on JBH, which appeared on this website a couple hours after I added this comment above, I’ll be reconsidering that intended purchase of further JBH shares on Monday… I’ll be looking for a greater margin of safety now before adding to my current JBH holdings. A very timely post from Roger. Thank you.
Luke
:
is there any competitive advantage in these companies?
Right place, right industry, right time?
Luke
Andrew
:
Fleetwood are one of the biggest manufacturers of “manufactured accomodation” for the resources industry. I dare say if you really look into it you will see some scale advantages where they can offer more value than competitors (built quicker,better,cheaper etc).
They also have quite a good brand when it comes to portable housing and recreational vehicles.There are definitley some advantages there for this company.
Roger Montgomery
:
Just the management/shareholder alignment that gets me rattled.
John C
:
Yes – we noticed! I don’t want to open up that can of worms again, but I do think that FWD management certainly have a number (a HUGE number) of reasons to make business decisions in the best interests of growing/increasing the value of the company, seeing as they own so much of it (and through the various option schemes, potentially will own more). That’s leaving aside the matter of whether there is a fair and equal distribution of profits to ALL shareholders, and the dillution effect that issuing so many options has on the average retail investor’s holdings. That’s all been covered extensively here before, but, on balance, I’m happy to have FWD as the single largest holding in my portfolio.
Roger Montgomery
:
Good counter point.