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ValueLine: JB Hi-Fi’s capital management review

Media Room, On the Internet | Comments (15)

ValueLine: JB Hi-Fi’s capital management review

Last year in Eureka Report Roger Montgomery wondered out loud if JB Hi-Fi’s steep profit trajectory may be levelling out. Has the company matured and what are the consequences of management’s promise to review its capital management practices? Read Roger’s article at www.eurkeareport.com.au.

INVEST WITH MONTGOMERY

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.

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15 Comments

  1. Eileen Hetherington
    :

    Have been a longtime subscriber to Eureka and this is where I first heard of Roger and always look forward to his valueline column as well as his (and others) contributions. Eureka provides independant analysis of companies and is well worth the subscription. Another comment on this blog, I really appreciate all the thoughtful contributions so selflessly given, could I just suggest that people identify the companies that they are responding about each time as sometimes I get lost when other blogs have been submitted and so the sequence can be lost. I thank Roger for all he has given to us all in sharing his valuable knowledge I am still learning but now I have a focus.

  2. DC
    :

    Thanks for the article Roger.

    If we know that these types of businesses are going to reach maturity within a time frame that can be reasonably estimated shouldn’t we make an earlier adjustment to the IV? If we don’t aren’t we at risk of overestimating our MOS as maturity hits and the growth in incremental equity slows together with a higher payout ratio causing an significant reduction in IV.

    Should you jump off the growth train early?

    Do you calculate a “maturity risk” for the companies you assess?

    Given Australia’s small population are some sectors more at risk of early maturity than others i.e domestically focussed companies? Are the only unlimited growth companies those with overseas operations/ earnings?

    Are mining services at risk of early maturity? Do those with world wide customers have a lower maturity risk?

  3. Ron F
    :

    Hi to everyone who uses this room
    I have re posted this as I think I may have posted the original in the wrong spot.
    There isn’t any need for a reply or thanks.

    Happy New year to you all….If you have been affected by the floods I hope your lives get back on track as quick as possible.

    Many thanks to all who posted blogs and special thanks to the Graduates who have put in a big effort to help the Undergraduates which includes me – I have enjoyed reading your replies and your own individual posts….they have been very enlightening

    I hope this year I can make a contribution to the room.

    Regards Ron F

  4. jeremy
    :

    Roger
    As with what you’ve taught me about investing, would subscribing to the Eureka report be good ” value” in your opinion? Im not being a smart arse either mate. Dont know much about it.

    JA

    • Andrew
      :

      Hi John,

      Unfortunatley the only way you can do it is to subscribe. You can get a free trial for a certain period and read them but once its over i am afraid you will have to pay up if you want to keep reading them. They are great articles.

    • William Gill
      :

      Hi John,
      Go easy on Roger, he provides an enormous amount of information, Some things you just have to pay for.

    • Pat Fitzgerald
      :

      Hi John

      Rogers insights are a good reason to subscribe to the ‘Eureka Report’. Also if Roger did not post these ‘Valueline’ snippets I would not have found out that he writes for the ‘Eureka Report’, therefore I think this is an effective way to advertise. Please keep posting thank you Roger.

    • John M
      :

      I have personally found that the cost of the report is insignificant to the gains I have reaped. I did an opportunity cost analysis and personally decided that I couldn’t afford not to subscribe. For me it was the correct decision. It is a personal decision that everyone has to weigh up for themselves.

    • David E
      :

      Agreed. We are very very very very very very very very well looked after by this blog…which I would pay to subscribe to…but costs us nothing. And we often get to read articles Roger has written for other forums eg. money, ASA ‘Equity’ publication etc., and they are all ‘pay for’ magazines or subscriptions that we get access to (Roger’s contribution) for nothing.

      Good deal…very good deal…!

    • Rob
      :

      Hi John,

      Roger is a weekly contributor to the Eureka Report. Eureka would not be happy if he released articles written for them to all and sundry.

      I have bought many many books on shares. Among them are some doozies like Peter Lynch’s “One up on Wall St” and Edward Chancellor’s “Devil take the Hindmost”.

      If you want to save money buy Roger’s book first. It’s the best I’ve read….and it’s backed up by free exercises and examples here on this site.

      Cheers
      Rob

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